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How a 100-Year-Old Housing Strategy Makes the ‘World’s Most Livable City’ Affordable

My family recently spent a week in Vienna, Austria, experiencing firsthand why the city has been named “the world's most livable city” for eight of the last ten years. As we navigated the efficient public transportation system and wandered through the charming streets adorned with stunning architecture, we found ourselves thinking, “We could definitely see ourselves living here.”

While the city's beauty was certainly captivating, I was struck by something even more significant. Unlike other major cities I've visited in recent years, there were no homeless individuals sleeping on the sidewalks or tents set up as temporary shelters. This absence was so noticeable that I couldn't help but wonder, “Where are all the homeless people?”

Vienna, with its population of 1.9 million—more than double that of Seattle or Boston—seems to have successfully addressed its homelessness issue. In those American cities, it’s nearly impossible to walk five minutes downtown without encountering people experiencing homelessness. Initially, I considered whether Vienna had simply hidden its homeless population away in slums. However, after some research, I discovered that while Vienna does have a homeless community, its approach to affordable housing has significantly mitigated the issue compared to most other large cities.

In the late 19th century, Vienna faced a severe housing and economic crisis, which contributed to a tragically low life expectancy in 1900. To combat this problem, from 1919 to 1934, the city invested tax revenue into public housing—not the kind typically associated with government projects. Instead, the homes constructed during this period were known as Volkswohnungspaläste, or “people's apartment palaces.” These multi-story apartment buildings were built with high-quality materials and featured beautiful architectural designs. They included green spaces, playgrounds, and easy access to medical facilities, schools, libraries, post offices, and theaters.

The philosophy behind this initiative was that government housing should promote a high quality of life for everyone. This innovative approach has remained central to Vienna's housing policies ever since. Today, over 60% of the city's residents live in government-subsidized housing, with nearly half of the housing market consisting of city-owned flats or cooperative apartments. Public housing carries no stigma, as it is integrated throughout the city.

While many other European cities began privatizing and commodifying housing in the 1980s and 1990s, Vienna maintained its commitment to viewing housing as a fundamental human right. This steadfast approach has led to its recurring recognition as the “world's most livable city.”

In the fall of 2022, a group of 50 American tenant and homeless advocates, organizers, researchers, and elected officials traveled to Vienna to learn about the city’s social housing programs. Here are some reflections they shared with The Nation:

“The mindset there is vastly different from what we have in the United States. Here, we often think of public facilities as low-quality and undesirable. But in Vienna, we saw that government-owned housing can be beautiful and beneficial for the community.” – Julie Cohon, lead housing organizer at Northwest Bronx Community and Clergy Coalition.

“I work hard and still struggle to find a safe place to live. In Vienna, I saw everyday people living in not only safe but also aesthetically pleasing environments. While touring Sonnwendviertel, a 5,500-unit social housing project near the main train station, I noticed many children and how thoughtfully designed the space was for them: there were ample daycare centers and pedestrian-friendly streets. It was clear that removing the profit motive from housing changes everything.” – Dorca Reynoso, board member of the Met Council Action.

“My main takeaway from Vienna was the longstanding culture of housing for all. The quality of social housing was also noteworthy; the Viennese government prioritized maintaining well-constructed buildings instead of frequently demolishing and rebuilding. The very first municipal complex was completed in 1924 and is still fully occupied today.” – India Walton, senior adviser at the Working Families Party.

Could the lessons learned in Vienna over the last century be applied to other cities? Absolutely! Given the housing crisis many cities are facing, it seems worthwhile to explore this approach. While housing isn't the only factor contributing to Vienna’s livability, it undoubtedly plays a crucial role. When housing is affordable at every price point and people don’t have to worry about securing a decent place to live, it becomes easier to focus on other aspects that enhance quality of life. This certainly appears to be a promising starting point.

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