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Housing Cost Burden of Austrian Households: Results of a Recent Survey

Author

Listed:
  • Christian Beer

    (Vienna University of Economics and Business Administration)

  • Karin Wagner

    (Oesterreichische Nationalbank, Economic Analysis Division)

Abstract

This article presents the results of a survey carried out in spring 2012 to determine the level of housing costs incurred by Austrian households. The housing cost survey shows that the share of housing costs borne by homeowners (loan repayment plus operating expenses and energy costs) accounts for 25% (median: 19%) of their net household income and is thus far lower than that borne by tenants (rent plus operating expenses and energy costs), which accounts for 34% (median: 29%) of tenants’ income. The burden of housing costs is significant in the lowest income quartile, in particular (tenants: 51% of their net household income, homeowners: 44%). This study compares the results of this survey with those of a comparable survey that was carried out in 2008. The results show that the share of housing costs as a percentage of income increased by 2 to 6 percentage points during the previous four years. The second part of this article analyzes the vulnerability of households. About 6% of households (8% of tenants, 38% of the unemployed and 12% in the lowest income quartile) state that they were in arrears with rent payments or operating expenses in the previous 12 months on at least one occasion owing to financial constraints. Around one-third of tenants are obliged to restrict their consumption to cover their housing costs.

Suggested Citation

  • Christian Beer & Karin Wagner, 2012. "Housing Cost Burden of Austrian Households: Results of a Recent Survey," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 4, pages 78-89.
    • Handle: RePEc:onb:oenbmp:y:2012:i:4:b:4
    as

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    File URL: https://www.oenb.at/dam/jcr:a6051218-d24e-4990-9725-5d10675bd756/mop_2012_q4_analyses4_tcm16-253970.pdf
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    References listed on IDEAS

    as
    1. Pirmin Fessler & Peter Mooslechner & Martin Schürz, 2012. "Eurosystem Household Finance and Consumption Survey 2010 First Results for Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 23-62.
    2. Nicolas Albacete & Pirmin Fessler & Martin Schürz, 2012. "Risk Buffer Profiles of Foreign Currency Mortgage Holders," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 23, pages 58-71.
    3. Nicolas Albacete & Pirmin Fessler, 2010. "Stress Testing Austrian Households," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 19, pages 72-91.
    4. Pirmin Fessler & Peter Mooslechner & Martin Schürz, 2010. "Real Estate Inheritance in Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 33-53.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Christian Beer & Karin Wagner, 2017. "Household's housing expenditure in Austria, Germany and Italy," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q4/17, pages 48-61.
    2. Nicolas Albacete & Peter Lindner, 2017. "Simulating the impact of borrower-based macroprudential policies on mortgages and the real estate sector in Austria – evidence from the Household Finance and Consumption Survey 2014," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 33, pages 52-68.

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    More about this item

    Keywords

    housing; housing costs; housing cost burden; housing finance;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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