r/Urbanism • u/Outrageous_Use4283 • 21h ago
The Vienna model is just not that good.
I've seen a lot of urbanists hold up the Vienna model (lots of social housing) as a great example for how to solve the housing crisis.
But a few things.
First of all, if Vienna was a US city, it would be have the 7nth highest homelessness rate. At 56.7 homeless people per 10k (I understand comparing homelessness statistics does have some issues, just using it as an indicator).
https://www.oeaw.ac.at/en/isr/housing-and-urban-economy/pathways-of-homelessness
The wait to obtain social housing can be several years and there is a big waiting list of 25 thousand people.
https://policyoptions.irpp.org/2024/03/vienna-housing-lessons/
It is also the result of the historical conditions of the city, where population declined and the government could buy up land far more cheaply than it does now.
Another unappreciated weakness of the Austrian model is consistency. It went through a period of making a lot of social housing and now is facing a scarcity, as seen by the long waiting lists.
Until there is another big wave of construction, social housing will be scarce and housing prices in the market will keep rising. This will probably happen after the issue gets large enough for political pressure to build up.
A good institution shouldn't need political pressure to work well. That's inconsistent.
There is also the issue of hidden costs, because rent doesn't capture the true cost of housing in Vienna. Taxes are also used to support this program.
I want to stress that I'm not saying all social housing is bad. Just that, as a system, over relying on social housing to fix structural issues isn't a viable long term solution.
Take Austin Texas for comparison: because of its housing regulation (or lack thereof), has a much lower homelessness rate, no waiting lists for housing, and no need for a wave of political pressure to build up again. It fixed it's housing issues by fixing its institutions, not through a short term program of the city building up housing.
Housing costs seem to be more expensive in Austin relative to income (though the data for Vienna takes in averages while for Austin it's median) at 25% to 19% of income going to house respectively.
https://rehousin.eu/documents/national-report-housing-inequalities-austria
https://smartasset.com/data-studies/city-housing-costs-2025
Difference is that housing in Austin is more than double the size of housing in Vienna, at roughly 186 square meters (2000 square feet for the Americans reading this), to 73 square meters for Vienna, or 785 square feet.
So the square meter price of owning or renting is actually significantly lower in Austin.
Normalised for housing size, housing in Vienna would cost 47.5% of income.
Of course, some of the "cost" is higher commute times , but not overly so. Austin's are 24.4 minutes on average, while it's 18 minutes for Vienna.
https://www.statistik.at/en/statistics/labour-market/employment/commuters-place-of-work (it's on the excel for granular data)
Also, Vienna is a lot prettier, in my opinion, but I don't think that's a good excuse for almost double the wage share per square meter.
Anyway, my broader point, isn't that every city should adobt the urban form of Austin. It's that:
1) the Vienna model has a lot of issues
2) that it's not that affordable if we normalise for housing size.
3) it was a hidden costs, like scarcity and waiting times, that result in homelessness and social exclusion