The accumulation regime of Salzburg and its interaction with the housing markets.

  • Koen Smet (Speaker)

Activity: Talk or presentationScience to science

Description

One of the main characteristics of real estate is that it is immobile, i.e. its location is tied to land and cannot be changed. At the same time one of the basic needs of humans is the need for shelter, i.e. housing. Therefore a geographical analysis of housing markets is highly significant. This paper studies the interaction between the general capital accumulation regime and the housing market in the city of Salzburg in order to explain recent price increases. Since the year 2000 the cost of housing in the city of Salzburg with respect to similar Austrian cities increased significantly. In this paper I argue that this evolution has to be analysed within the framework of "urban entrepreneurialism". In the case of Salzburg urban governance is mainly characterised by attracting money into the city by means of consumption. However, by creating a favourable and save environment for consumption (e.g. tourism, cultural events and festivals) the urban region becomes increasingly attractive as a place to live and to extract land rent. At the same time strict regulations limit the availability of land and secure the value of existing real estate. It could even be stated that this is even inherent to this strategy of urban governance. As a result the cost of living/housing increases significantly and socio-economic differentiation occurs. Moreover, this configuration makes Salzburg also attractive for real estate investments, which increased in the wake of the Financial and Economic Crisis that started in 2008.
Period9 Apr 201313 Apr 2013
Event titleAAG Annual Meeting
Event typeUnkonwn
Degree of RecognitionInternational

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 509003 Development cooperation
  • 502027 Political economy
  • 507026 Economic geography
  • 502047 Economic theory
  • 502003 Foreign trade
  • 507