Re/Shaping housing markets – the economic impacts of affordable housing
Wiener Wohnen (Rosa-Fischer-Gasse 2, 1030 Wien), Vienna Austria
Time: 13:30 – 17:00
Place: Wiener Wohnen (Rosa-Fischer-Gasse 2, 1030 Wien), Vienna Austria
In cooperation with the Housing Europe Affordable Housing Bootcamp in Vienna
The current housing affordability crisis is questioning the belief that free markets result in the optimal allocation of resources. This situation is causing economic instability and diverting resources away from productive investments. Economist Mariana Mazzucato argues that creating effective housing markets necessitates shaping, rather than solely repairing them.
This half-day conference will explore Austria’s limited-profit housing sector and its impact on global housing markets. It will address important questions related to the housing market, such as the behaviour of those involved and how it affects housing provision, the economic and social impacts of different approaches in the market, and the results of market interactions. Specifically, the discussion will explore the following economic assumptions and recent research on Austria’s limited-profit housing sector:
• Capital markets prioritize profits, leaving low and middle-income households with limited housing options.
• Public authorities often intervene to provide affordable homes, but this can mean subsidizing investors instead of supporting long-term affordable housing.
• Austria’s research suggests a cost-based price-setting mechanism and revolving investment can increase affordability for housing association tenants and lower rent levels in the for-profit sector, reducing the need for public expenditure on housing allowances.
The Austrian Federation of Limited-Profit Housing Associations is excited to engage in a discussion about the economic principles of housing markets with a global audience, including scholars, experts, and policymakers.
Moderator: Sorcha Edwards (Housing Europe)
Attendance is free but registration is required: https://eveeno.com/278253985
English summaries of the reports are available via: https://www.gbv.at/english/