Real estate market analysis
The real estate market plays a crucial role in a country's economy, and residential property is the most important component of households' wealth. For this reason, price trends in the real estate markets affect households’ consumption and investment decisions via wealth effects. As real estate is often used as collateral for loans, changes in real estate prices affect households' debt and their ability to repay loans and, as a result, also have an impact on the banking sector. As housing covers a basic human need, analyzing fluctuations in residential property prices is also important from a social perspective. Furthermore, the construction industry is a major employer, and investment in construction has a major influence on economic activity.
Developments in the real estate market, therefore, have far-reaching implications for the economy as a whole and for financial stability. Safeguarding financial stability ranks among the key responsibilities of central banks and is thus one of the core tasks of the Oesterreichische Nationalbank (OeNB). In view of the strong increase of residential property prices (especially in Vienna) the OeNB has expanded its analysis of developments in the Austrian real estate market over the past years. It has developed methods to continuously monitor and analyze the real estate market to be able to precisely assess the implications for the economy as a whole and for financial system stability in particular, and to identify potentially adverse developments at an early stage.
On this website, the OeNB makes available analyses of, and other information about, developments in the Austrian real estate market. The information primarily relates to the residential property market and caters to both the general public and real estate market experts.