Housing in Vienna Set to Become Even More Expensive in 2026

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Vienna’s housing market is heading into another challenging year, with experts warning that rents will continue to rise significantly in 2026. According to a new market assessment released on Tuesday by the real estate consultancy EHL Immobilien, a sharp decline in construction activity combined with persistently high demand is driving prices upward—most notably in districts outside the Gürtel.

Construction Slump Deepens Supply Shortage

EHL describes the current situation as marked by a “dramatic shortage of supply.” For the first time in nearly a decade, the number of newly completed apartments in 2025 fell below the 10,000 mark. The shortfall is particularly pronounced in the rental sector, where average prices climbed by up to eight percent last year. Analysts expect rents to rise even more strongly in 2026, outpacing general inflation.

Rental Market Under Heavy Pressure

The number of newly built privately financed rental units nearly halved in 2025, dropping to 2,087. Subsidized rental housing also saw a notable decline, falling by 20 percent to 2,894 units. At the same time, demand remains robust across the city.

This imbalance is already reflected in price developments:

In districts north of the Danube as well as in Favoriten and Simmering, rents rose by around 6.7 percent.
In central and high-end locations, increases reached up to 9.4 percent.

For 2026, EHL forecasts a further tightening of supply and rental price growth between 7.0 and 8.5 percent, clearly above the expected inflation rate.

Ownership Regains Appeal

While the rental market struggles with shortages, the ownership segment experienced a temporary surge in completions in 2025—nearly 30 percent more than the previous year. This spike, however, was largely due to developers shifting projects originally intended for rental use into individual unit sales.

EHL expects this trend to reverse in 2026, with significantly fewer ownership units reaching completion. Still, the consultancy notes a broader shift toward buying rather than renting, driven by sharply rising rents, lower interest rates, and improved financing conditions. Prices for owner-occupied properties are projected to increase by around 3 percent next year.

Vienna’s housing market, long known for its stability, now faces mounting pressure on both renters and prospective buyers. With supply shrinking and demand showing no signs of easing, affordability is set to remain one of the city’s most pressing challenges in 2026.