Vienna sets standards for affordable housing

Mayor Ludwig speaks on affordable housing at the Vienna House in Brussels and presents three concrete proposals for affordable housing.

In the last week of October 2025, Mayor Ludwig spent two days on a working visit to Brussels. The focus of his exchanges was affordable housing. For many years, the Viennese city leader has been campaigning for better framework conditions at European level to enable more investment in social and affordable housing.

The "Vienna model", which is characterised by a high level of security, broad access and stability, is repeatedly referred to in EU debates. Around 150 delegations travel to Vienna every year to learn about the system.

Housing for the Common Good

The mayor himself is in lively exchange with his counterparts, as was recently the case at a meeting with Paris Mayor Anne Hidalgo in Vienna. He is expecting a visit from EU Housing Commissioner Dan Jørgensen in Vienna later in the year. Vienna is committed to better anchoring the concept of non-profit housing at EU level. Ludwig, together with representatives of European interest groups, formulated a concrete proposal to this effect in an "open letter" to EU legislators already in April 2024 from the federal capital.

At an event at the Vienna House in Brussels, Ludwig gave an overview of the city's long-standing commitment and expressed his conviction that "the Vienna model is indeed suitable for contributing to a good housing policy, i.e. 'Housing for the Common Good', at the European level." The city leader advised drawing inspiration from the principles, instruments and ideas of the Vienna model, because "we need diversity in local solutions in Europe; the EU must play a complementary and enabling role here."

Three concrete proposals for affordable housing

According to Ludwig, the plan is to be presented by the European Commission in mid-December. Vienna has three concrete proposals in this regard: "In view of tight budgets, it will be important to develop EIB financing instruments that are sustainable and keep money invested in the system once it has been invested. We are therefore happy to make our expertise available, for example in the area of Viennese housing subsidies, and envisage revolving funds at EU level that would make it easier for cities and municipalities in particular to invest in affordable housing," says Ludwig. Last year, EIB President Nadia Calviño already gained first-hand information about the Viennese model.

Negative effects of EU state aid law on housing must be cured

Ludwig also spoke clearly on the current issue of state aid law, which has demonstrably led to legal uncertainty and thus to a decline in public investment in many countries, regions and cities in Europe. "A solution must finally be found here which, in line with the principle of subsidiarity, clearly leaves the right to define what constitutes social and affordable housing to the Member States and their regions or municipalities. I therefore welcome the proposed extension of the scope of state aid law from social to affordable housing, but this must be accompanied by the removal of the narrow definition of the target group for social housing. This is the only way we can avoid legal uncertainty in the future and unlock investment potential", Ludwig emphasises. He has already sought talks with EU Commission Vice-President Teresa Ribera to discuss the issue once again with trusted partners.

Housing summit 2026

Finally, Ludwig referred to the announcement by EU Commission President Ursula von der Leyen and EU Council President Antonio Costa for a housing summit 2026. Ludwig, who is also President of the Austrian Association of Cities and Towns, urged that representatives of associations of cities, regions, social partners, the non-profit housing sector and tenants' organisations be involved: "We know that housing is a complex issue that requires the cooperation of many actors, not only in Vienna, but also at the European level."