Austria sees record low in building permits for new dwellings in 2024

Residential construction in Austria reached its lowest level in over a decade in 2024, as the number of building permits for new dwellings declined significantly. According to Statistics Austria, only 32,100 dwellings were approved for construction in new buildings last year, marking an 8.5% decrease from 2023. This downturn brings residential construction activity to its weakest point since 2010.

The overall number of approved dwellings in 2024 stood at 51,473. Of these, 44% were part of new residential buildings with three or more units, while 18% were in buildings with one or two units. Just 0.5% were approved in non-residential structures. Another 38% of permits were issued for extensions, additions, and conversions of existing buildings, amounting to 19,373 dwellings nationwide. Vienna accounted for 7,112 of these approvals.

Tobias Thomas, Director General of Statistics Austria, noted that the continued decline in building permits indicates a likely reduction in the availability of new apartments in the near future. This trend highlights persistent challenges in Austria’s housing construction sector.

Looking at longer-term trends, the volume of approved dwellings in newly constructed buildings has dropped by 37% over the past decade. In 2014, approximately 50,600 new dwellings were approved. The figure peaked in 2017 with a record 72,500 units, followed by fluctuations in the subsequent years. Since 2019, the sector has seen a steady decline, culminating in the current record low.

Private builders continue to play the most significant role in residential construction. Out of 16,182 buildings approved in 2024, 73% were developed by private individuals. Most of these were one- or two-family homes, with 7,232 buildings falling into this category. More than half of these were constructed in the same municipality where the builder resides, and an additional 22% were located within the same political district. However, about 10% were built in a different federal province.

In Vienna, a notable pattern emerged. Only 43% of private builders from the capital constructed homes within the city. Instead, 38% chose to build their detached or semi-detached houses in neighboring Lower Austria, underlining the capital’s housing challenges and the tendency of residents to seek more affordable or accessible options outside the city limits.

Overall, the sharp decline in building permits and continued dependence on private builders reflect broader structural issues in Austria’s residential development, including regulatory bottlenecks, affordability concerns, and shifting demographic and geographic trends in housing demand.