Real estate prices in Austria have fallen by 3.5% since 2022, whilst over the same period disposable household income has increased by 23.5%, according to UniCredit Bank Austria.

Housing however currently still costs around 30% more than in 2008, with high demand for rental properties due to the still high real estate prices continuing to drive rents above average.

Walter Pudschedl, UniCredit Bank Austria economist, said: "The decline in real estate prices, strong income growth, and the easing of monetary policy have made home ownership more affordable in Austria over the past two and a half years.

"However, compared to 2008, the beginning of the real estate boom, real estate prices have risen significantly more than incomes." 

The purchase of residential property remains difficult for the majority of Austrian households, for the lowest-income population group the dream of homeownership has become even more distant due to the smaller increase in income. 

Pudschedl said: "The high real estate price dynamics since 2008 have made financing home ownership unaffordable for more and more households, demand for rental properties has increased. Combined with the automatic indexation of rents, this has triggered a 17% increase in rents in Austria since 2022.”