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john_b | 2 years ago
You're right that public housing doesn't fundamentally require income restrictions. The government could forbid all private construction and take over home development itself, placing price caps as needed. But if you think something like that's going to work in the US when we can't even accomplish much more minor housing reform, you're dreaming. Vienna's model is certainly not that radical.
For starters, even Vienna's social housing model has income restrictions. If you and your partner both earn the average 2023 Viennese salary (about €52,000/person) then you don't quality for social housing because your combined income significantly exceeds the annual threshold (€79,490 for two people in 2023).
Even if you do qualify, you are only eligible if you have lived in Vienna for two years already. This system does nothing for new transplants. And once you do qualify, the wait time to be approved for an apartment can be in excess of 5 years. They even have a "bonus period" to move people who have been waiting for more than 5 years up in the line, because the city recognizes how frustrating that must be.
The system is easily gamed too. Vienna only checks your income once as part of the process. If your income increases later on (e.g. because you finished school and got a great job) you don't become ineligible. That part is fine by itself, but you can also transfer the apartment to a qualifying family member if you decide to move out, and they don't need to wait 5 years. This contributes to the reduced supply and long wait times because it reduces inventory and rewards those with family connections in the city.
And of course this whole system is far from free. If you make the average Viennese salary your income tax rate is 42%, whereas it's 25% for the average American worker. The average Vienna home is worth around 1 million euros and the property tax rate on such a home is a whopping 3.5%. Even in expensive coastal places like San Francisco and San Diego, property tax rates are barely above 1%. The tax burden to fund this kind of social housing (and other great things too, to be fair) is definitely heavy. It's fine to point out the positives of such a system, but the costs have to be acknowledged as well. And in the US I don't think the taxpaying population of any city is willing to bear those kinds of costs.
Vienna's system does do a great job mixing different people together, as you note. But not all of this is due to public housing. Quite a bit of it is simply how walkable the city is and how great their public transport options are. Even a moderate amount of public housing for low income individuals scattered throughout a very foot-friendly city would do a great job mixing people together.
theluketaylor|2 years ago
Nothing approaching that radical an approach would be required. Just getting funded public housing agencies with a mandate to develop non-market multi-family housing using properties in the city's portfolio would be a massive victory for affordability.
RhysU|2 years ago