Layers of Commodification in the City of Decommodification: The Transformation of Regulated Private Renting in Vienna

Among housing observers, Vienna is typically treated as a posterchild of decommodification, showcasing the power of politics to tame the profit motive in housing. We argue that this view requires nuance. In the regulated private rental market, which accounts for one-fifth of all housing units in the city, commodification has become a trait of Vienna’s housing system over the last three decades. Based on policy analysis and transaction data we trace the state promoted intensification of commodification and the rise of corporate owners. We show how, together, they substantially transformed regulated private renting by opening and exploiting regulatory loopholes to maximise returns. We then demonstrate, based on survey data, how this was accompanied by improved housing quality in the sector, yet also by rising rents, affordability burdens, and housing insecurity. The paper balances existing accounts of Vienna’s housing system, while also speaking to debates around the revival of private renting.