Upper Austria housing loan deals jump 40.5 percent

The number of private housing loan agreements in Upper Austria rose 40.5 percent in the first half of 2026 compared with the same period last year, ORF reported. At Raiffeisenlandesbank Upper Austria, the financing volume increased even more sharply, reaching 634.6 million euros, up 48.1 percent.

The volume of new agreements signed by the end of June was already higher than the total recorded for all of 2024. However, the recovery has not yet fully reached the construction industry.

People aged between 30 and 34 accounted for the largest share of new housing loans, while the average age of all borrowers was 36. The average loan amounted to 188,000 euros and had a term of about 24 years. Four in five new loans had a fixed interest rate.

Raiffeisen housing adviser Katharina Aechter attributed the increase in demand partly to higher incomes and a more stable environment for construction costs. Many housing projects postponed during the difficult past few years are now being carried out, she said. Loan amounts have also become smaller.

Young families are investing more in renovations, while condominiums remain affordable, according to construction entrepreneur Maximilian Etzenberger.

Raiffeisen also said the expiry of the KIM regulation was contributing to the increase. The regulation had imposed stricter rules on housing loans, including requirements for borrowers’ equity and limits on monthly loan payments.

Despite the significant increase, Raiffeisen said there was still no new housing boom. Demand had fallen sharply in recent years, meaning the current growth was also coming from a low level.

Construction companies have so far felt little effect from the rise in loan demand. Etzenberger, who runs the ETZI Group in Ried im Traunkreis and whose company builds detached and semi-detached houses using solid brick construction, said there was a delay of several months between improved financing sentiment and new building contracts.

Financing a traditional detached house remains difficult, particularly for young people, because of high land and construction costs, Etzenberger said. The average new loan of 188,000 euros at Raiffeisen also indicates that not every new housing loan is linked to building a new home.

Instead, people are also investing in existing buildings by renovating, converting or expanding them. Etzenberger said construction companies would increasingly need to focus on renovations and new uses for existing detached houses alongside new construction.

He sees potential in adapting large existing houses for several generations or for shared forms of housing such as senior citizens’ shared flats.

The order book for solid brick houses is strong until February but subdued beyond that, Etzenberger said. It remains unclear whether the revival in housing loans will continue and eventually reach construction sites. International crises and possible new price increases could dampen willingness to invest again in the autumn.