Since 2004, property prices in Austria have exploded. The consequences of this situation are far-reaching.
Austria, the land of mountains, lakes and… unaffordable property prices. For young people like me (26), who harbour the dream of owning their own home, this dream has now become a nightmare. My parents and grandparents were able to afford their own home or at least work towards it by the time they were my age. They lived in a time when, despite crises, hard work, discipline, and thrift actually led to home ownership – a tangible goal that promised social advancement and stability. Yet today, in a generation that is also growing-up in the midst of crises – rising prices, climate change and global uncertainty to name but a few – this goal is becoming an unattainable dream for many. In a country that prides itself on its social stability and prosperity, buying your own home should not be an unattainable luxury. But that is exactly what it has become.
A generation on the brink of resignation
Since 2004, property prices in Austria have exploded. The prices of residential property have risen by well over 100% to date, while the average net income has increased by just 60% over the same period. These are not figures that could possibly reassure young people starting out in their careers. While the prices of rented flats are also skyrocketing, the hope of owning property often remains a distant dream. The hurdles that have to be overcome to buy one’s own flat are a farce: high ancillary costs, strict lending guidelines, and a market that is increasingly dominated by investors, leave young people wondering: what’s the point?
Motivation at rock bottom
The consequences of this situation are far-reaching. In a world where work was long associated with the promise of social advancement and financial prosperity, this promise is now beginning to crumble. Young workers who realise that even overtime and pay rises cannot fulfil the desire for home ownership are losing motivation. Why should you work your fingers to the bone if the goal remains unattainable? The result: burnout rates are rising; mental health is suffering; and general motivation to work is falling. Why sacrifice yourself in a job if the result is at best a few extra restaurant visits or a weekend trip – but certainly not a home of your own?
What does this mean for companies?
For businesses, this development is anything but trivial. Those who rely on committed and motivated employees to survive in a highly competitive market will soon be confronted with a new reality: a generation of employees who simply no longer feel like working. In real terms this means higher turnover rates and additional recruitment and training costs. Unless companies change their work culture to meet new employee priorities such as flexibility, work-life balance and meaningful work whilst still providing attractive salaries (people still have to pay for the higher cost of living after all!), employers could find it difficult to attract and retain qualified employees.
Loss of commitment & innovative strength could also be a side effect. If employees feel that their hard work is not leading to their desired goals, this can have a direct impact on their motivation. They will put less energy and creativity into developing new ideas and innovative solutions. This in turn could lead to declining productivity and efficiency. A generation of employees who ‘don’t feel like it anymore’ will inevitably have a negative impact on a company’s productivity and efficiency because of a reduction in quality, delays, poorer overall results and increased absenteeism.
A ticking time bomb
But the crisis has a deeper, perhaps more dangerous dimension. The growing social inequality, exacerbated by the inaccessible property market, could, in the long term, lead to the destabilisation of society as a whole. If the belief in social advancement is lost, if the younger generation loses faith in the future, then not only is motivation at work at risk, but also the very foundations of our entire economic and social system.
The question is not just how we can help young people realise their dream of owning their own home, but how we can prevent an entire generation from giving up. The solution? Bold reforms and a change of thinking in politics and in companies. Because a generation that sees no future is a generation that will no longer sacrifice itself for the here and now.
What companies should do now to rectify the situation
It is crucial for young employees to feel the support of their employers. The world has changed, and companies’ strategies must change with it. There are six clear steps I believe companies should be taking:
New paths instead of broken promises of prosperity
My generation has already been plagued by a multitude of pressing crises at a young age – from climate change to geopolitical uncertainties and inflationary price increases. These challenges, coupled with the feeling that the situation is unlikely to improve, lead to a stressful reality. At least as frustrating is the realisation that we no longer see ourselves as being able to significantly improve our personal lives. The promise of prosperity, which for a long time was associated with hard work and diligence, seems to have become fragile. The old story of the upwardly mobile worker who earns prosperity through hard work and commitment no longer works. It ignores the reality in which we are growing up – a reality in which social advancement seems to be almost impossible for many.
It is a tiresome trend when articles repeatedly claim that Generation Z is lazy and no longer wants to work. I find such sweeping judgements not only inaccurate, but also dangerously short-sighted. How can we expect a generation that is suffering under the weight of countless crises to be as committed and motivated as our parents and grandparents, who despite facing crises themselves had much better prospects at the end of them? It is naive to believe that ignoring these difficult conditions offers any solution.
The real challenge is to understand the environment in which we are growing up. Only when politicians and economists recognise and take seriously the impact of all these negative influences on our generation can we take targeted and effective action. It is time to think about solutions instead of just shooting at the young generation. How can they really support us? How can they help us regain our satisfaction and motivation? We need concrete, courageous reforms and measures that open-up new perspectives and give us hope.
It is possible to set the course for positive change. The key is to have the courage to question existing structures and pursue innovative approaches. Only in this way can we prevent an entire generation from giving-up and resigning itself to defeat. The way out of the crisis is through a shift in thinking, and an honest effort to address the needs and challenges of young people. It is time that we work together to create a future that offers hope instead of resignation.
HORIZON Risk Thought >> Fast Forward
The complexity of today´s risk environment is changing at an accelerating pace, making risk management even more challenging. We have created HORIZON, firstly as a print publication and now as a page for sharing the latest insights about ongoing transformations. Our risk specialists will continue to provide their expertise and knowledge to shine a light on the challenges of the future.
Laura Hochegger
Deputy Head of Sustainability & Innovation
GrECo Group
T +43 664 822 18 66
