A DISAGGREGATED PROBABILISTIC APPROACH TO A REGULATED HOUSING MARKET WITH EMPHASIS ON THE DEMAND SIDE: THE VIENNA CASE

ABSTRACT The general setting of this paper is the metropolitan housing market of Vienna where in contrast to freemarket societies different kinds of support and control mechanism affect the market operation. For example, rents are partly controlled and new housing production, housing maintenance and modernisation are to a great extent subsidised by the federal government and the provincial governments of Vienna and Lower Austria. In this paper, a housing market simulation model is presented which attempts to lake into account the regulated and institutionalised nature of the metropolitan housing market of Vienna. Particular emphasis is placed on the demand side.