Salzburg housing shortage to drive prices higher beyond 2035

Housing supply in Salzburg remains limited, and prices are expected to keep rising beyond 2035, according to an analysis by Raiffeisen Immobilien Salzburg reported by ORF.

Political efforts to create more affordable housing have so far had little effect. The housing sector is still operating in a post-coronavirus crisis environment, while global political developments have pushed up raw-material prices and interest rates.

Raiffeisen Immobilien Salzburg said the commercial housing sector also faced difficult conditions because of restrictive regulations and numerous political requirements.

Salzburg has the second-highest property prices in Austria after Tyrol and the second-lowest reserves of building land after Vienna. The gap between demand and supply is expected to widen further in the coming years.

Although population growth is likely to slow or even decline slightly over the next decade, the number of households is expected to rise as households become smaller, including through an increase in single-person homes.

With more households competing for limited housing, prices are likely to continue rising beyond 2035. As fewer people can afford to buy property, more are expected to rent. Rents are also likely to increase, particularly in the central region around Salzburg city.