Sarah Kumnig: How did they manage to get 80% of Viennese renters? "The key is red Vienna."

Sarah Kumnig is a housing policy expert and professor at the Vienna University of Economics and Business. The Austrian capital has the largest public housing stock in Europe. Rents for these public apartments are around €8 per square meter, half that of Barcelona, ​​where they exceed €16.

Sometimes I hear about Vienna and its housing, and it seems like paradise.

— We also have problems, there are also evictions, but it's true that more than 40% of the housing stock is public.

In Catalonia it does not reach 2%.

— Incredible. In Vienna, almost 80% of the population rents their apartments. It's a city of renters.

What is the key to success?

— We must go back to Red Vienna. In the 1920s, prices were sky-high, there was a lot of speculation, and the government decided to act.

And he regulated the rent, right?

— Yes, and prices fell. The private sector lost interest in buying and building because the apartments weren't profitable, and the municipality said: we'll build them ourselves.

But you have to have money to buy…

— Land was cheap because it had fallen in price, but they also introduced a luxury tax. That is, they taxed products like champagne, horse racing, and cars, and that money was used to finance construction.

Do you think this would be possible in Barcelona today?

— I don't know the context well. Today, in Vienna, the problem is the price of land. The city still buys land—green, industrial, agricultural—then develops it and commissions construction to housing associations for limited profit. But there are few plots of land because they are expensive.

What are these associations?

— They're an interesting figure. We mentioned that 42% of housing in Vienna is public, but not all public apartments are municipal. Half are owned by the city council, but the other half are owned by entities that emerged as cooperatives of individuals who wanted to build their own homes and also by industry that built housing for its workers.

And today?

— In exchange for building, they get a tax break. But they must offer rents based on cost. Construction is expensive these days, so new rents aren't cheap, but rents on older buildings are very affordable. And these companies make money, but it must be a limited profit.

Is it difficult to access public housing?

— It's very easy to qualify, but there are long waiting lists because the contracts are permanent and you can pass them on to your children. Limited-profit housing requires an initial payment, which they then return when you leave, but this can be a barrier. They can ask for 500 euros per square meter.

Would it be a good idea to set property limits?

— If you own property, you also have a certain responsibility to society. And I think a good way to regulate this is by taxing property and having a high wealth tax. In Vienna's case, the key to success is a combination of tools.

Do you think it is feasible to maintain this housing system?

— It's already been changing. Before 1994, all contracts were open-ended, and the rules were deregulated so that temporary contracts could be made available. There are rental regulations, but they only apply to homes built before 1945, so there are an increasing number of apartments that escape regulation. Furthermore, there are no effective sanctions for landlords when they fail to comply.

And is housing a concern in Vienna?

— Yes, and I think it's harder to voice concerns than in other places; there's a lot of shame. It seems like if you're having trouble paying your rent, it's your fault. And there aren't any tenant organizations either, so if something happens to you, there are government offices you can go to, but not an organization where tenants talk to each other.