The De-commodification and Re-commodification of Vienna’s Gründerzeit Historic Housing Stock

Abstract

Drawing on Braudel’s idea of different layers of time (Braudel, 1958) and applying approaches from urban and economic geography, this chapter discusses the long-term real-estate dynamics of Vienna’s Gründerzeit housing stock. It looks at the structural factors underlying real-estate prices and urban development over the long term: from the start of the Gründerzeit period (also referred to in architectural terms as the Founder’s Period – 1848 to 1918) until the present day. From this perspective, it discusses the shift between three periods of commodification and their impact on the transformation and preservation of these buildings: phases of commodification, decommodification, and re-commodification. The Gründerzeit was characterised by rapid industrialisation and urbanisation during which housing was mainly provided by private actors. Due to the demographic growth of the city, a huge demand for housing drove up prices, which was highly lucrative for landlords, but created miserable housing conditions for a considerable part of the Viennese population (Period 1: 1848 until 1918). This housing commodification gave rise to two ideal-typical urban forms: the generous and aesthetic bourgeois apartment housing located in the city centre and the far smaller workingclass tenement in more densely populated areas with fewer facilities. During and after World War I, rental price regulations and tenure protection caused rental prices to decline, leading to a de-commodification of this market segment for many decades (Period 2: 1919 until 2000). With the fall of the Iron Curtain, Vienna slowly turned from a “dead-end city” into a central European metropolis, once again experiencing demographic growth. Especially from the late 2000s (Period 3), the combination of strong demographic growth and increasing interest in housing as a safe investment meant Vienna’s Gründerzeit stock again became a commodity for developers. This interest has put pressure on the housing stock, sometimes leading to its demolition. This chapter examines transformation and preservation practices in the light of the long-term demographic, regulatory, and economic framework that influenced the situation of Vienna’s Gründerzeit housing stock and considers how these practices reveal the various attributes, values, and expressions associated with these buildings. While preservation and heritage processes have been comprehensively studied in reference to public entities or local community initiatives, little has been said on the role of the real-estate market and commodification dynamics and their impact on preservation and heritage processes. This chapter seeks to shed light on this issue. The method applied relies on analysis of secondary sources, thematic and critical discourse analysis of planning and legal documents, as well as preliminary field observations undertaken in Vienna during the months of February, April, and May 2024.