A new law to reduce housing costs
The Austrian government, represented by Vice Chancellor and Minister of Housing Andreas Babler and the spokesperson for housing in SPÖ and President of the Tenants' Association in Vienna Elke Hanel-Torsch, announced the introduction of a "new rent increase brake" extending until 2027.
According to Babbler, a cap will be set on rent increases in the regulated sector so that they do not exceed 1% in 2026 and 2% in 2027. Efforts are underway to unify the rental law to make it fairer, including commercial rents.
Rent prices in Austria have increased by 70.3% since 2010, with 25% of that increase occurring in just the last two years. Rents were supposed to rise by an additional 3.16% in April, but this was restricted in the regulated sector, resulting in a total savings for tenants of 138 million euros in 2025 alone. For example, someone paying 700 euros monthly for a 45 square meter apartment could save around 1,000 euros by 2027.
But these rules do not apply to everyone. As Haniel-Torch explained, the freeze only applies to what is known as the "regulated sector", namely: Rents by categories prior to 1949 Reference rents with a value stabilization clause according to the law Reference rents linked to the consumer price index, but indirectly
These restrictions do not apply to rents in the free market or "reasonable rents", but they do apply to cooperative apartments and municipal housing. Due to the complexity of the law, the Mietervereinigung Österreichs has launched rent freeze days from June 10 to 13, during which free and appointment-free review of rental contracts is offered.
The government plans to raise the minimum duration of rental contracts from 3 to 5 years in order to reduce pressure on tenants, especially young people and families. According to Babler, short contracts make tenants vulnerable to extortion or accepting poor conditions for fear of not renewing the contract, while landlords take the opportunity to raise prices at each renewal. Regarding the implementation of a brake on the unregulated sector, Babler confirmed that the matter is still under complex study. Despite hoping to reach a solution before summer, expectations indicate that actual implementation will be in the fall, after the necessary legal frameworks are prepared.