Austrian nonprofits offer cheaper rents

In Austria, households living in nonprofit housing pay on average 228 euros less in monthly rent than those renting on the private market.

The Wirtschaftsforschungsinstitut Wifo conducted research for the Gemeinnützige Bauvereinigungen (GVB) and found that this difference saved Austrian residents a total of 1.9 billion euros. Since 2019, private rents have increased by 32 percent, while nonprofit rents only rose by 23 percent, widening the gap in affordability to 3.40 euros per square meter.

An increase in the number of nonprofit housing units also puts downward pressure on private rental prices, a 10 percent rise in nonprofit units correlates with a 0.30 euro decrease per square meter for private renters. However, the construction of new nonprofit housing is currently below long-term averages. Regional differences exist, with residents in Vorarlberg and Tirol, areas in western Austria, seeing less savings than those in other regions.

The public sector also benefits from nonprofit housing through reduced costs for housing and social assistance, gaining 278 million euros in relief, though the sector receives 200 million euros in corporate tax exemptions. Despite a recent dip in construction, 11,900 units built in 2025, 40 percent below the long-term average, the GVB argues that nonprofit housing remains a key solution to affordability issues, citing land shortages and lengthy approval processes as obstacles.