Austrian home-ownership demand rises as mortgage lending rebounds despite high prices
Most Austrians still desire their own home, and mortgage approvals have jumped sharply even though many consider property unaffordable.
According to a study commissioned by UniCredit Bank Austria, roughly 75 % of Austrians aim to live in their own dwelling, and the aspiration is strong among 16- to 29-year-olds. Yet just a quarter consider buying a home easily affordable, while the main obstacles are existing debt, lack of down-payment and especially high property prices. Residential mortgage volumes rose substantially in the first half of 2026 compared with the same period a year earlier, approaching the 2022 peak of €2.7 billion.
Banks say rising net incomes—up about 22 %—have reduced the average cost of 100 m² housing from 14.4 to 11.7 years of income. New “Myhome” branches aim to guide borrowers through the process, but price differentials remain stark, with Vienna apartments averaging €471,000 versus around €267,000 in nearby towns such as Purkersdorf, offering savings of up to €280,000.
Why it matters
Rising mortgage activity shows strong demand for home ownership despite costly housing, influencing Austria’s economy and housing policy.
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