Social Housing in Vienna: Reflections from Los Angeles Housing Leaders

What is Social Housing?

In Vienna, "social housing" refers to government-owned or regulated permanently affordable housing. It offers housing security through permanently rent-restricted homes tailored to local housing needs, and intentionally buffered from market-driven price fluctuations. The Vienna Social Housing Model, originating in the early 20th century, is renowned as one of the world's most stable and effective models.

This model prioritizes high-quality, affordable housing for the working class, setting Vienna apart by offering a diverse range of housing types, including both publicly and privately owned units. The social housing sector in Vienna caters to the majority of its 1.9 million inhabitants residing in such accommodations. Notably, 40% of Vienna's housing stock falls under the social housing umbrella.

Vienna stands out as a predominantly renter city, with 74% of its housing leased. Despite an active for-sale housing market, Vienna's legal framework, grounded in the belief that housing is a fundamental human right, ensures robust protections for renters, enhancing the appeal of renting in the city.

Housing Types in Vienna, Austria

Municipal Housing (Gemeindebau) is a form of social housing owned and managed by the City of Vienna. The majority of municipal public housing in Vienna was built between 1922 and 1980. Approximately 220,000 units are owned by the city, making Vienna the largest municipal housing provider in Europe (about 22% of Vienna’s total housing stock).

Limited-profit housing (Gemeinutzige Genossenschaft) is a form of social housing owned and managed by limited-profit housing cooperatives and limited liability companies. Although housing cooperatives emerged over a century ago, LPHAs have built the majority of social housing in Vienna since the 1980s. Today, roughly 180,000 units of housing are owned and managed by LPHAs (about 18-20% of total housing stock). Limited Profit Housing Associations strive to establish mixed-income housing by offering a variety of dwelling sizes, fostering a diversity of rental rates. One-third of all new LPHA developments have to be smaller compact units called “smart units,” which are accessible to lower-income households. Common features within LPHA developments include amenities like parks, bike garages, gardens, and communal spaces, all conveniently situated with accessible public transportation options nearby. In some LPHA housing developments, tenants have the right to purchase the unit. It's worth noting that the design of each building is unique, as each Limited Profit Housing Association and development team applies and competes for the opportunity to build through a city-regulated developer competition.

There is a growing movement of cooperatively-owned housing that exists outside of Vienna’s social housing system but which, in many cases, mirrors social housing. Even though co-ops do not receive direct housing subsidies, some cooperatively-owned and managed apartments place resale restrictions on the units that keep them affordable for future generations.

Cooperative Housing — Gleis 21, constructed on reclaimed railway land, operates as a shared ownership housing cooperative. The ground floor hosts retail spaces and an artist cooperative, while residents play a crucial role in fostering social cohesion by organizing activities accessible to the neighborhood.

Austria prioritizes affordable student housing to reduce the cost burdens associated with obtaining an education. Student housing in Vienna is dispersed throughout the city, facilitating a diverse community of students from various educational systems living together. Accessible transportation is a constant, and amenities like study rooms, gyms, laundry facilities, and bike garages are provided. Student housing in Vienna typically ranges from $100- $700 per month and is provided by publicly-sponsored nonprofit organizations backed by the Federal Republic of Austria. Low-cost student housing is available to all community college, college, and university students in the City of Vienna.

Privately-owned housing includes private-market rental buildings, single-family homes, condominiums, and cooperatively-owned housing. Although not a part of the social housing system, privately owned market-rate housing is an active development market in Vienna. In most neighborhoods, privately-owned housing exists alongside and is indistinguishable from social housing.

Private Housing — In the Sonnwendviertel neighborhood, the developer competition included both social and private housing, with developable lots distributed to the winning candidates. All residents share the same streets and utilize common public amenities, including parks, bicycles, and pedestrian infrastructure integrated within the development.

Key Facts & Figures: LA & Vienna Comparisons

Vienna

Los Angeles

In Vienna, there is one affordable housing unit for about every five people, and in Los Angeles, there is one affordable housing unit for about every fifty-five people.

18% of Viennese are rent burdened (defined as more than 40% of post-tax income spent on rent) compared to 58% in LA City and 57% in LA County (defined as more than 30% of pre-tax income spent on rent)

Vienna is unique in that it is both a city and a state, known as a "Bundesland" in German, within the country of Austria. Los Angeles, on the other hand, is a city situated within the larger county of Los Angeles, which is located in the state of California, United States. This distinction affects the governance structure, administrative divisions, and responsibilities within each respective region.

City of Los Angeles and Vienna

City of Los Angeles and Vienna Housing Supply Comparison

Vienna demonstrates that when a significant proportion of the housing stock is moderately priced and insulated from market pressures, housing stress is reduced resulting in a more livable city for all. The following charts show the difference in total affordable housing supply between the City of Los Angeles and Vienna.

Housing Supply Graphic — Sources: HUD Picture of subsidized households (public housing only). CHPC Affordable Housing Map and Benefits Calculator. Vienna sources are City of Vienna, Daniel Glaser 2020.

Vienna places significant emphasis on prioritizing the construction of affordable housing while Los Angeles lags significantly behind.
From 2011 to 2021, 107,456 housing units were constructed in the City of Vienna. During the same period, 16,713 units were demolished, resulting in a net production of 90,743 units. Today, social housing construction in Vienna, with a population of 2 million residents , averages about 7,000 units per year.

For comparison, California with a population of about 39 million, built 16,296 affordable homes built using Low Income Housing Tax Credits in 2023.

Accessible housing, health, education, and infrastructure allows for Vienna’s residents to experience a high quality of life.

Since 2004, the "Global Livability Index" developed by the EIU (Economist Intelligence Unit) has been annually comparing more than 100 cities worldwide on aspects ensuring a high standard of living, such as healthcare, education, infrastructure, culture, safety, and stability. In June 2023, Vienna secured the top spot for the third time as the most livable city.

Ensuring Housing Security: The Role of Vienna's Three Housing Markets

Vienna has three distinct housing sectors: A private for-profit housing sector, a municipal or public-housing sector, and a limited profit housing sector. The municipal and limited-profit sector comprise approximately 43% of housing units in Vienna’s “Social Housing” system. While social housing comprises less than half of the housing units, the majority of Vienna’s residents live in social housing and are permanently insulated from market price fluctuations. Vienna’s sizable social housing sector ensures long-term affordability is available to Vienna’s residents. Furthermore, the significance of the social housing sector has a moderating influence on private market rents, creating greater affordability for the entire housing market in Vienna. Social housing is more than a type of housing, it’s a segment of the housing market that aligns housing costs in Vienna with the incomes of working people in Vienna.

A key feature of the two sectors that provide social housing is that they also include a robust social safety net and protections for tenants. For instance, a social housing tenant has the benefit of long-term housing stability, including the right to pass rental contracts to offspring in the event of one's passing. Open-ended leases provide tenants with a sense of permanence and stability. Additionally, in cases of financial difficulty, the City of Vienna offers assistance in securing more affordable housing options and provides rental support for deeply low-income residents.

Furthermore, the City of Vienna provides tenants with technical assistance – including relocation advice, rent support, and legal aid – to ensure no one is unnecessarily displaced. During periods of financial strain, the City of Vienna also helps tenants secure more affordable housing options or offers vouchers to support them. With various forms of social housing available, housing is accessible to 80% of Vienna's population. This system not only prevents homelessness but also cultivates a robust middle class, guaranteeing housing security for the majority of Vienna's residents.

Overall, the embedded tenant protections and safety net system provided through the social housing system provides a level of predictability and permanency that in the United States is often only associated with homeownership.

^{^[4]} EIU Global Liveability Index

^{^[5]} Baron, Harald, Ngoc Thi-Bich Doan, Justin Kadi & Leonhard Plank (2021) Wohnungspolitik und Wohnversorgung: Bericht aus fünf wachsenden europäischen Millionenstädten [Housing policies and housing conditions: Report from five growing European metropolises]. Stadtpunkte, Arbeiterkammer Wien: Wien.

^{^[6]} ACS 2021 5 Year: DP404 Selected Housing Characteristics

^{^[7]} Vienna Dept of Justice via briefing book

^{^[8]}LA County Superior Court eviction filings

^{^[9]} Nelson, Kyle (2023). A JUDICIOUS INVESTMENT: Right to Counsel Is a Cost-Effective Way to Solve Los Angeles’ Affordability Crisis and Keep Angelenos Housed

^{^[10]} GPLA Briefing book

^{^[11]} Ibid

^{^[12]} https://controller.lacity.gov/landings/evictions