At the beginning of 2026, the federal government’s new rent package will come into force. According to calculations by the Tenants’ Association, this will result in tenants paying around 311 million euros less in total in the years 2025 and 2026. For an average household in an older building, this means relief of about 318 euros in 2026. From the perspective of the Social Democratic Party (SPÖ), this clearly demonstrates the difference made by social democratic participation in government: affordable housing is once again becoming a political priority, emphasizes Housing spokesperson Elke Hanel-Torsch.

A view of the forest from the entrance of a tent: renting is a luxury in Austria.

At the heart of the package is a noticeable limitation on rent increases. Following a complete rent freeze in 2025, a multi-year cap will apply: in 2026, regulated rents may rise by only one percent, and in 2027 by a maximum of two percent. This applies to guideline rents, category rents, and municipal housing.

Another new feature is that previously unregulated rental agreements will, for the first time, be covered by law. If inflation between two years exceeds three percent, only half of the portion above that threshold may be passed on to tenants. Hanel-Torsch stresses that this measure has a lasting effect and is not merely temporary.

A further key element is the extension of the minimum duration of fixed-term rental contracts. From January 1, 2026, new contracts and extensions must generally run for at least five years instead of the current three. Small private landlords are exempt from this rule.

Hanel-Torsch also announces further reform steps. The goal remains a uniform tenancy law for all tenants, as well as the reintroduction of earmarking housing subsidy funds. Housing, she says, must be affordable, safe, and dignified for everyone.

>>-> Rent madness despite cap: The 10-euro mark has fallen

By Okay Altinisik | 3-1-2026, 5:17:59