“FMA and the federal government need to make some changes,” said state councilor Jochen Danninger (VP) at the summit.
A construction industry summit was held in Lower Austria on Friday at the initiative of the provincial councilor for economics Jochen Danninger.
“For Lower Austria as an economic area, workplace and living space, it is important today and in the future that people can afford to build their own houses. To do this, the FMA and the federal government have to make some adjustments,” he said. underlined Jochen Danninger (VP), provincial councilor for the economy, at the top of the construction sector in Lower Austria. At the top, the President of the Lower Austrian Chamber of Commerce, Wolfgang Ecker, Univ.-Prof. Christian Helmenstein, head of the economic institute for economic research, Stefan Graf, president of the construction industry of Lower Austria, Erwin Krammer, deputy master of the construction industry of the state corporation and managing director of ecoplus Helmut Miernicki.
“Great challenge for young people”
“Young people in particular face great challenges when it comes to financing their homes. In addition to rising interest rates and higher construction costs, an FMA guideline also makes it more difficult to build your own home. We consider this guideline disproportionate because for many people it poses too high obstacles and deprives young families of the possibility of owning their own homes and at the same time the regional construction sector is losing possible orders. We can already see that loans are decreasing significantly, “says Danninger. The State Council also sees the federal government called upon to reintroduce housing expenses deductibility and eliminate land registry fees.
Sharp rise in property prices
Univ.-Prof. Christian Helmenstein, head of the Economa Institute, points out the sharp increase in real estate prices in recent years in relation to the net income of the population: “Today, young people in Lower Austria have to spend on average 22 times their annual net income to be able to afford a condominium. In addition to interest rate hikes by central banks, the new regulatory requirements are now further increasing financing costs for new living space. Buying a home is becoming impractical for more and more families. As a result, the new ones. loans in August collapsed to the level of 2014. Here a regulatory reform is needed to facilitate lending ”.
This says WKNÖ President
“An affordable house in Lower Austria is closely linked to the construction industry in Lower Austria. A single-family home not only creates 2.7 jobs per year, but also generates an added value of € 511,200. In addition, renovations and restorations of existing houses are carried out. Affordable homes are therefore important for regional value creation and an active construction industry. This guarantees stability in economically difficult times. In order for the property to remain accessible in the future, a lot of gears need to be turned. In particular, the reintroduction of the tax credit for housing creation projects is needed, “says Wolfgang Ecker, president of the Lower Austrian Chamber of Commerce, stressing the importance of affordable housing for Lower Austria as a business location .
“A dream for many people”
Stefan Graf, Managing Partner of the Lower Austrian Construction Group Leyrer + Graf and President of the Lower Austrian Construction Industry, explained: “For many people, building their own home is one of their dreams and at the same time one of the biggest investments in life. The low interest rates of recent years, combined with an expansive monetary policy, have favored construction in recent years, also increasing the attractiveness of properties as an investment. The pandemic and the war are currently having disruptive effects on the stability of the economic system and, with their severe disruptions to supply and production chains, are accelerating the development towards inflation, which in turn sets in motion a further spiral of costs. To break out, this vicious circle must be broken and this requires a performance orientation and personal responsibility. This is what Lower Austria represents and which guarantees prosperity and therefore also the affordability of owning your own home ”. Graf therefore calls for these principles to be promoted through incentives in tax and labor market policy.
appeal to public authorities
Erwin Krammer, Deputy Master of the State Guild of the State Construction Corporation, stressed the importance of the construction industry: “Recent cost developments are made up of several factors. In order to be able to guarantee affordable housing in the future, it is therefore important to analyze them together and take appropriate measures. The construction sector is obviously happy to do its part, for example by identifying the savings potential in current regulations. It is important for us to state that construction companies are not benefiting from the current situation, but are also prone to rising production costs. The construction sector is and has been, especially in recent years, an essential cornerstone of our economy and guarantor of regional added value and employment. As the construction sector is expected to slow significantly in the first half of 2023, we therefore call on the public sector to take compensatory measures in this case. “
“Has a direct impact on the quality of life”
“As a business agency of the state of Lower Austria, we support sectors and topics that are important to the business location within our clusters: the national construction sector has been one of them for over 20 years. Not only does it represent many thousands of places. work, but affordable housing also has a direct impact on people’s quality of life and is an important factor in deciding where to live and work in the future. Therefore, all measures to promote affordable construction and renovation they also help strengthen the business headquarters, “said ecoplus CEO Helmut Miernicki.
