AustriaAustria's construction industry remains in recession for the eighth consecutive year, with economic experts noting that the sector has shrunk significantly since the end of the low-interest rate period after the pandemic. The number of orders for surviving construction companies has dropped to levels seen between 2012 and 2017, compared to a peak in 2022. Economist Jan Kluge suggests exempting renovated older buildings from rent control laws to stimulate renovations without additional state spending, which could create jobs and address energy efficiency needs. Currently, only 1.5% of housing stock is renovated annually, but this would need to double by 2040 to meet decarbonization goals. Many older apartments do not benefit from current regulations, making renovations economically unviable for owners.
Bias read (Center): The article presents economic analysis and policy suggestions without overt ideological framing. It quotes economists from different institutions and discusses potential reforms neutrally, focusing on data and expert opinions rather than taking a clear stance on political issues.
