Two Problems, One Affordable Green Solution

Summary

Up First from NPR: Two Problems, One Affordable Green Solution
Release Date: June 15, 2025
Hosts: Ayesha Rascoe, Julia Simon

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Introduction: A Dual-Purpose Solution

00:00 - 00:28
Aisha Rascoe introduces the episode as a "Sunday story" focusing on a compelling solution addressing two major challenges: housing and climate change. Unlike typical narratives that emphasize problems, this story spotlights Vienna, Austria, as a pioneering hub for climate-friendly housing solutions. To delve deeper, Rascoe welcomes NPR's climate solutions correspondent, Julia Simon.

Vienna's Climate-Responsive Housing Model

00:28 - 04:49
Julia Simon recounts her journey to Vienna, sparked by discussions among climate researchers fixated on the city. Accompanied by her colleague, Ryan Kelman, Simon explores a modern apartment building that exemplifies Vienna's innovative approach. Here, they meet Sebastian Schublach, a resident who showcases his six-floor apartment complex equipped with numerous climate-friendly features, including:

• Rooftop Gardens and Solar Panels: These not only beautify the space but also contribute to energy efficiency by cooling the building and generating renewable energy. (02:34)
• Efficient Window Shades: External shades minimize heat gain during summers, reducing the need for excessive air conditioning. Schublach demonstrates their functionality, highlighting their practicality in everyday life. (03:06 - 03:24)
• Shared Amenities: Facilities like a sunlit library and sauna foster a strong sense of community among residents. (01:48 - 03:24)

Despite these advancements, the cost remains surprisingly affordable for a four-bedroom unit, priced at approximately $1,700 per month, inclusive of utilities—a stark contrast to rising housing costs elsewhere. (03:29 - 03:35)

The Backbone: Vienna's Social Housing System

04:05 - 07:07
Social housing in Vienna is categorized into city-built housing and city-subsidized housing:

1. City-Built Housing (Gemeindebau): Originating post-World War I, the Social Democratic Party of Vienna initiated the construction of over 60,000 high-quality apartment units within 15 years, funded by taxing the wealthy and regulating private landlords. Today, approximately 220,000 units remain, serving around half of Vienna's population. These buildings are lauded for their durability, spaciousness, and communal amenities.

2. City-Subsidized Housing: Known as limited profit housing, developers compete for low-interest loans and land subsidies by incorporating sustainable design elements. Currently, there are about 200,000 units under this category.

[05:22 - 07:07]

Integrating Climate Resilience into Housing

07:07 - 09:20
Vienna leverages its extensive social housing stock to advance climate resilience through:

• Renewable Energy Adoption: Mandatory solar panels and efficient heat pumps in new constructions. Existing buildings are retrofitted with better insulation and energy-efficient windows. (07:58 - 08:38)
• Geothermal Heating: Utilizing geothermal energy to sustainably heat buildings. (08:38)
• Sustainable Urban Planning: Proximity to public transportation, bike lanes, and climate-protective landscaping (e.g., flood barriers, shade-providing trees) enhances overall urban resilience. (09:20)

Julia Simon emphasizes that these measures collectively reduce energy consumption and greenhouse gas emissions, positioning Vienna as a global leader in sustainable urban living.

Financing Sustainable Housing Initiatives

09:20 - 12:28
Daniel Aldana Cohen, a sociology professor at Berkeley and co-director of the Climate and Community Institute, explains Vienna's multifaceted funding approach:

• Public Funding: Significant upfront costs are covered by the city through taxes on salaries, shared between employees and employers.
• Private Sector Involvement: Banks provide loans, and profits from housing projects are reinvested into future developments.
• Sustainability Investments: Initial high costs for climate-friendly features are offset by long-term savings and environmental benefits. As Cohen states, "Investments to switch from fossil fuels to renewable energy also save money in the long run." (11:10 - 12:28)

This diversified financing ensures the sustainability and scalability of Vienna's social housing model.

Inspiring U.S. Cities: Transatlantic Lessons

12:28 - 21:25
Vienna's success has caught the attention of U.S. policymakers and city officials aiming to replicate its model:

• Chicago's Green Circle Ordinance: Inspired by Vienna, Chicago recently passed an ordinance facilitating the development of new apartments with 30% affordability and stringent energy efficiency standards. Funded by a $1.25 billion bond measure, $135 million is allocated specifically for these climate-friendly projects, with expectations to begin groundbreaking next year. (15:43 - 16:36)
• Federal Initiatives: Senators like Tina Smith and Congresswoman Alexandria Ocasio-Cortez have proposed the Homes Act, aiming to establish a housing authority to fund affordable and climate-resilient housing. Although facing political hurdles, the act represents a significant step towards integrating climate solutions with housing policy. (16:36 - 18:09)
• Local Implementations: Cities like Seattle and Yonkers are already initiating green social housing projects, incorporating solar panels and high-efficiency standards. These "baby steps" signify the beginning of a transformative trend across the U.S. (18:20 - 21:25)

Overcoming Challenges: NIMBYism and Community Buy-In

18:20 - 21:25
One of the primary obstacles in the U.S. is Not In My Backyard (NIMBY) sentiment, which resists the development of large housing projects. To mitigate this, U.S. initiatives are adopting Vienna's mixed-income model, ensuring diverse communities benefit from green social housing. Jiang Yoon of Chicago highlights that inclusive models garner broader support and political defense, as they visibly demonstrate universal benefits. (18:47 - 21:25)

Community and Resilience: A New American Dream

21:25 - 23:44
Sebastian Schublach reflects on the socio-cultural benefits of Vienna's model, emphasizing community solidarity and mutual support during crises. This communal approach contrasts with the traditional American dream of individual homeownership, offering a more sustainable and socially cohesive alternative. The sense of belonging and shared responsibility fosters resilience against climate-related events, reinforcing the viability of social housing as both a practical and aspirational model.

Conclusion: Vienna as a Global Beacon

23:44 - End
Julia Simon concludes by reiterating the transformative potential of Vienna's green social housing. Starting with a single project, the city's ongoing commitment has positioned it as a beacon for sustainable urban living. As climate challenges escalate globally, Vienna's integrated approach offers a replicable blueprint for cities worldwide striving to harmonize housing affordability with environmental stewardship.

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Notable Quotes:

• “This is not a pipe dream.”
  Emily Gallagher (04:34)

• “The climate movement is like turning in a massive way, like, it's wild.”
  Daniel Aldana Cohen (21:25)

• “The sun doesn't send an energy bill.”
  Viennese Politician (11:43)

• “This mixed income model of social housing is absolutely integral to the success.”
  Jiang Yoon (20:43)

Additional Information

For more insights and visual content related to this story, visit npr.org/climateweek.

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Produced by Justine Yan and edited by Jenny Schmidt. Special thanks to Ryan Kelman and Armin Puller for photography contributions.

Transcript

[Aisha Rascoe]

Aisha. I'm Aisha Rascoe, and this is a Sunday story where we go beyond the news to bring you one big story on this show. You know, we often talk a lot about the problems facing our country and our world. But today we have a story about a solution. It addresses two of the biggest problems affecting people across the country. Housing and climate change. To tell us more, we have NPR's climate solutions correspondent, Julia Simon.

[Julia Simon]

And hello, Aisha. Today I want to take you to a place that's working to combat climate change through their housing. That place is Vienna.

[Aisha Rascoe]

So Vienna, Austria. You're not talking about, like, Vienna, Virginia?

[Julia Simon]

No, Vienna, Austria.

[Aisha Rascoe]

Okay, okay, Julia, like, how did you find yourself reporting on climate and housing in Vienna? And it seems like you're very good at getting these good gigs.

[Julia Simon]

Oh, my goodness, you are right. And like many great adventures, this one started at a happy hour. A happy hour for climate researchers. And these climate researchers, they kept repeating one word over and over. Vienna, Vienna, Vienna. And I was like, what is the deal with Vienna? I had to find out. A few months ago, my colleague Ryan Kelman and I traveled to the Austrian capital. My hat just flew off because it's very windy. We were in this big grassy park with playgrounds full of kids. There's a bunch of apartment buildings around this park, but one stands out. It's a modern building. It's lots of wood, lots of windows. On one of the top floors, I see a guy in a beanie waving. That's him waving to us. And we finally catch up to him.

[Aisha Rascoe]

How are you?

[Sebastian Schublach]

I'm fine with you.

[Julia Simon]

Great.

[Sebastian Schublach]

This is Sebastian Schublach, if you need the full name.

[Julia Simon]

Schublach works at a think tank. He's lived in this modern building for about six years with his wife and two young daughters. He loves talking about his apartment building, so he takes us on a tour. Should we go upstairs? Yes, yes, let's do it. It's six floors plus a basement, 34 apartments, lots of shared amenities. Look at how beautiful. Like a library. Sunlit library. A rooftop garden. And rosemary. A lot of rosemary ceilings from rosemary. A sauna. Nice sauna with a view. It's a really beautiful view. On the roof, you see the city, the mountains.

[Sebastian Schublach]

In the distance, you can almost see Hungary.

[Unknown]

Oh, wow.

[Sebastian Schublach]

Yeah.

[Julia Simon]

Wait, that far? Wait, where's Slovakia? Then Shublach shows us his apartment. It's a lovely four bedroom, another balcony. Very nice. And Aisha, there are a lot of climate friendly aspects. Things that help the building reduce planet heating, pollution, the plants on the roof, they help keep the building cool in the summer so it uses less energy. There are solar panels.

[Sebastian Schublach]

They're on the rooftop.

[Aisha Rascoe]

Oh, Jesus.

[Julia Simon]

Cool window shades on the outside of the apartment that help keep out the sunlight and the heat. In summer, Shublach uses a switch to put them up and down. Do you mind showing us?

[Aisha Rascoe]

This all sounds really nice, but I mean, he must be paying a lot for this.

[Julia Simon]

Well, for a four bedroom, utilities included, plus the shared space, he pays about 1700 US dollars a month, which is.

[Sebastian Schublach]

Not cheap cheap, but it is definitely affordable.

[Julia Simon]

Oh God. You don't want to know what people are paying anywhere. Aisha, the whole reason we came to Vienna is because this climate friendly apartment, it's not some fancy private apartment. It's, it's actually subsidized by Vienna's city government. It's something called social housing.

[Aisha Rascoe]

And so social housing, is that public housing? Like what exactly is that social housing?

[Julia Simon]

It's kind of like public housing. It's the government playing a role. And look, we're in this moment when the Trump administration is proposing big cuts to public housing, cutting funding to reduce climate pollution. You might think now is a bad time to, to learn about climate friendly housing in Vienna, but in places like Chicago and Denver, government officials think now is actually a great time. Officials like State Representative Emily Gallagher in New York.

[Emily Gallagher]

This is serious.

[Julia Simon]

This is not a pipe dream.

[Aisha Rascoe]

Today on the show, a climate and housing solution from Vienna and the US Politicians who've traveled to Vienna and are now trying to build this dream in.

[Julia Simon]

The U.S. see, we're all Vienna pills.

[Aisha Rascoe]

Stay with us. We're back with the Sunday story. This whole week, NPR is focusing on climate solutions and the communities where we live. Julia, before the break, you were talking about how social housing in Vienna addresses climate pollution. But what exactly is social housing in Vienna?

[Julia Simon]

Well, there are two main types of Viennese social housing. Basically there's city built housing and there's city subsidized housing. If you're a housing nerd, that's Gemeindebau and Gemein. Anyway, the city built housing really comes out of the post World War I era. After World War I, there's lots of starvation. There's a huge housing crisis in Vienna. In 1919. The left wing Social Democratic Party wins control of Vienna City Council. And this party says we are going to build a ton of high quality housing to improve people's quality of life. They pay for this new housing by taxing the wealthy. They made lots of new regulations on private landlords. The city builds more than 60,000 new apartment units in about 15 years. These apartments, they were airy, they had nice courtyards, they were built to last. And many are still standing today. Today There are about 220,000 units of this type of city built housing.

[Aisha Rascoe]

So what about the second type of housing, the city subsidized housing.

[Julia Simon]

This is what Schubelhach lives in, that apartment with the sauna. This housing is called limited profit housing because they have to invest the profits back into maintaining housing or making more housing. The way city subsidized housing works is that developers compete to get these low interest leases loans from the city. That's the subsidies. They compete for the land from the city to make the housing. Today there's about 200,000 units of city subsidized housing. So if you add all that up, the city subsidized housing and the city built housing, today about half of Vienna's residents live in it. So around a million people.

[Aisha Rascoe]

That's a lot.

[Julia Simon]

It is a lot. And Vienna is now known as the social housing capital of Europe, if not the world. And this social housing, it ends up being a key tool in Vienna's plan to tackle climate change. In the Austrian capital of Vienna, the Wien river overflowed its banks, forcing evacuations there. Last year, Vienna saw a thousand year flood event. In this era of human caused climate change, Vienna isn't immune. They're seeing more heat waves. And today, Vienna city council is still led by the Social Democratic party. This party has aggressive goals to cut climate pollution. In recent years, the city realized that all those 400,000 plus apartment units that they own or subsidize, that could help them reach their climate goals.

[Aisha Rascoe]

So how are they doing that?

[Julia Simon]

Well, let's start with the city built housing. With the new city built housing, it's all mandated to have solar panels. Many have efficient heat pumps. The city is also heating buildings with something called geothermal energy that involves drilling into the earth to heat homes. And the city is retrofitting old buildings. We saw one building from the 1950s, they put in new insulation, new windows, doors. So we're looking at a new door. Looks thick and a good glass. Not the most exciting stuff, but all this adds up to increased energy efficiency and reduce climate pollution.

[Aisha Rascoe]

So the city has a lot of control over buildings that they own. But, but what about the city subsidized housing? Like how, how do they get that to be climate friendly?

[Julia Simon]

Okay, for city subsidized housing, the developers get land and subsidies from the city. The city doesn't just give them the money and land. There's a formal competition process. The city says, you housing developers, you want this land and subsidies, you gotta compete for it. There's actually a jury that awards plus points for how many nice qualities the building design has. And one of the main ways that you get points is for sustainability. If the project has more climate friendly aspects, then the developer gets more points to win.

[Aisha Rascoe]

So that's a lot of motivation for developers to make a climate friendly design, right?

[Julia Simon]

There's land on the line and money on the line. And this right here, this housing competition, researchers say it's, it's key to a lot of Vienna's innovation in climate friendly housing. Schublach's building, Gleise 21, It's a great example. About a decade ago, the city had this land, this old rail yard they were turning into social housing. About 20 people, they made a group and they said, we want to build an apartment together. We have our eyes on this beautiful plot right on the park. So they got an architect, they made a design, and this design had so many climate aspects. I talked to the architect who helped design Schublach's building, and he remains convinced that the climate friendly elements of the design were what helped them beat out the competition. And Aisha, there's one more key way Vienna is tying social housing and climate resilience together. Researchers say the success of green social housing in Vienna isn't just about the housing itself. It's also also about these climate friendly things that surround the housing. Some of the climate friendly things are really obvious, like how the housing is often so close to public transportation, like trains and trams, also bike lanes. But there were other things like landscaping to protect residents from floods, trees that provide shade in dangerous heat. This all helps the city adapt to climate change.

[Aisha Rascoe]

I mean, this all sounds really cool, but it also sounds expensive. How is Vienna paying for this social housing and this climate stuff?

[Julia Simon]

I talked to Daniel Aldana Cohen about this. He's a sociology professor at Berkeley, a co director of the Climate and Community Institute, a think tank, and he researches Vienna's green social housing.

[Daniel Aldana Cohen]

So the thing with the Vienna model of social housing, it's not that the public sector has to pay for the literally entire thing. That would be extravagantly expensive.

[Julia Simon]

The city does pay a big chunk of upfront costs, but there are lots of sources of money. Some money comes from a tax on people's salaries. The employee pays part of it and the employer pays part. Also, banks give loans and profits are.

[Daniel Aldana Cohen]

Reinvested a little bit of funding is typically reserved from every project to then be a seed fund for the next project.

[Julia Simon]

Some of the climate investments can have high upfront costs, but but researchers told me many investments to make the city more climate resilient will pay off big time as the world warms. And investments to switch from fossil fuels to renewable energy also save money in the long run. As one Viennese politician told me, the sun doesn't send an energy bill. The sustainability of Vienna's social housing adds to its quality. Solar reduces your bills in summer. The good airflow and insulation keeps you cool. Social housing is popular in Vienna and people around the world are noticing.

[Jiang Yoon]

I have been absolutely inspired by Vienna's work.

[Julia Simon]

This is Jiang Yoon.

[Jiang Yoon]

I'm the chief of policy for the mayor's office in Chicago.

[Julia Simon]

Yoon went to Vienna last April to learn about Vienna's social housing. And there were lots of representatives from other U.S. cities on her trip.

[Jiang Yoon]

There were some folks from Nashville, from Seattle, from Philly.

[Julia Simon]

She went to Shoeblack's place.

[Jiang Yoon]

It's like a wooden, smaller, a sauna.

[Aisha Rascoe]

Yes, we went there.

[Julia Simon]

It was beautiful. Yoon was inspired to bring back lessons from Vienna to Chicago. And it is starting. Here's Chicago's ABC7 Eyewitness News. City Council handed Mayor Brandon Johnson a major victory today by green lighting his Green Circle social housing ordinance.

[Aisha Rascoe]

When we come back, Vienna's green social housing crosses the Atlantic. Stay with us.

[Tina Smith]

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[Aisha Rascoe]

We're back with the Sunday story. Julia, before the break, you were saying that us policymakers want to make green social housing here in America, including in Chicago. Tell us more about what's going on in Chicago and what they're, they're learning from Vienna.

[Julia Simon]

This spring, the city of Chicago passed an ordinance that basically will help allow the city to develop and own new apartment buildings. So 30% of the apartments will be affordable and it will have regulations that reduce the energy use and the climate pollution of the buildings.

[Aisha Rascoe]

So, so how are they paying for this?

[Julia Simon]

Yeah, so last year Chicago passed this big $1.25 billion bond measure. The city plans to use some of that money, 135 million, to pay for building these climate friendly developments like Vienna. The profits from the first projects will be reinvested into future projects or used to increase the affordability. Like Vienna, a lot of the land will come from the city of Chicago. And like Vienna, Chicago sees housing as a key way to reduce their climate pollution. Yoon says more than 2/3 of Chicago's greenhouse gases come from buildings.

[Aisha Rascoe]

So how much progress has Chicago made?

[Julia Simon]

They expect the first groundbreaking for this new green social housing next year.

[Jiang Yoon]

I mean, we just passed this ordinance, so we have some work to do to implement and get this off the ground.

[Julia Simon]

But Aisha, it isn't just local politicians getting inspired by Vienna.

[Emily Gallagher]

I am Tina Smith and I am United States Senator from Minnesota.

[Julia Simon]

Senator Smith went to Vienna a few years ago. She was on holiday, but she couldn't help herself from researching the housing.

[Emily Gallagher]

I'm constantly thinking about this because I'm always trying to figure out how cities are dealing with the housing crunch, which is such a huge issue in America.

[Julia Simon]

When Senator Smith got back to Washington, she got together with her colleague in Congress, New York Congresswoman Alexandria Ocasio Cortez. Last fall, they introduced something called the Homes Act. It would establish a new housing authority to make affordable housing and provide money for climate upgrades.

[Emily Gallagher]

The upfront money to be able to make the kind of energy improvements that are so important to lower costs for people in the long term and also deal with climate pollution.

[Julia Simon]

The bill hasn't gone anywhere yet.

[Aisha Rascoe]

I mean, that's not too surprising. I mean, the Trump administration seems to be moving in the opposite direction. It's proposing massive cuts to housing programs and it's already made really big cuts to climate programs.

[Julia Simon]

Totally. I brought these concerns to Senator Smith. You know, we're in this moment in the US where there's a lot of backtracking on climate action on a federal level.

[Emily Gallagher]

Well, the Homes act is out there as a beacon for a different way of thinking about how to build housing in this country. It's important to have a big idea out there for what we are shooting for.

[Aisha Rascoe]

I mean, when you use the word beacon, that sounds like aspirational. That sounds like a goal, not something that will really be widespread anytime soon.

[Julia Simon]

Well, maybe not on the federal level, but on the local level again, in cities it's a different story. There already are examples of green social housing popping up. Aisha. There's a affordable housing building in Seattle with solar panels and energy efficient air conditioning. There's an affordable housing building in Yonkers, New York for older people. It has really high energy efficiency standards. Baby steps. But it's starting.

[Aisha Rascoe]

I have to imagine though that there, there are other obstacles in the US for, for green social housing to get off the ground.

[Julia Simon]

Yeah, a big one is NIMBYism. It can be hard to get community buy in to build new big housing projects in America and it can be even with public housing projects because many people think neglected buildings. They don't think high quality buildings like you see in Vienna. But I wanted to go to a place in America where they are trying to build green housing. So last month NPR producer Justine Yan and I went to Brooklyn where we met Emily Gallagher. She's a New York State representative representing beautiful Green Point. She, she too has been to Vienna. We're all Vienna pilled. Gallagher showed us this gleaming white apartment building under construction in her district. We were on the water, the East River. This building is 37 stories tall. It has amazing views. Is that the Empire State Building?

[Emily Gallagher]

Yes.

[Julia Simon]

Okay.

[Emily Gallagher]

Direct view of the Empire State Building.

[Julia Simon]

You can see the Chrysler Building. You can see all of the East Village. This building has climate friendly aspects just like Vienna. It has geothermal energy.

[Tina Smith]

It is going to be the largest.

[Julia Simon]

Geothermal building in New York State and one of the largest in the country. And it's going to have some affordable housing. The building is getting state tax credits to do affordable units. 30% of the building's housing will be designated as affordable, according to a release on the developer's website. And look, many people in the US have told me that they don't think of social housing or public housing as a place where People of different classes come together. But Jung Yoon of Chicago says they're being really deliberate, making sure that the green social housing that they're building is mixed income.

[Jiang Yoon]

This mixed income model of social housing is absolutely integral to the success. Because if people of all walks of life are benefiting from this, it is going to be much harder to unwind and much easier to defend politically and for everyone to see that they are benefiting from it.

[Aisha Rascoe]

Yeah. So if, if, if this is something that serves everyone, then theoretically it would get more buy in, right?

[Julia Simon]

That, yes, that is the hope. And Cohen and other climate researchers, they really do have a lot of hope for green social housing. They're excited because they're seeing new coalitions forming between climate advocates and housing advocates.

[Daniel Aldana Cohen]

One of the reasons why I think this all could happen, Julia, and I really believe it, is that the climate movement is like turning in a massive way, like, it's wild. It's like they've all suddenly realized, oh, my God, housing is the number one issue. People can't afford their bills, they can't afford rent. They're losing their minds.

[Julia Simon]

And look, Ayesha, there will still be people in the US who want their house in the suburbs. They want their white picket fence. But as those houses become more threatened by wildfires and as it gets harder to get insurance, some people might have to rethink what their housing dream looks like. Schublach in Vienna doesn't think that's a bad thing. He grew up in the Austrian countryside, which he says is like America in that dream.

[Sebastian Schublach]

I think it's very similar to the American dream of owning single family house in the countryside. Yes. And the downside is that this dream for most people has become unaffordable, and it has become ecologically unaffordable. So, yes, this dream still exists. Some say it has become kind of a nightmare. So it's really a dream which cannot be fulfilled by many.

[Julia Simon]

But Schublach says he's found a new dream in his green social housing. He's found a sense of community in his apartment building. The oldest inhabitant is almost 80 years old, and the youngest is less than a month old. They're all there for each other.

[Sebastian Schublach]

If somebody needs a banana at 8pm because the kid would not eat anything else, then you get a banana within one mint.

[Julia Simon]

And the next time there's a storm or a heat wave, because there will be a next time, Schublach says he will be there for his neighbors, and they'll be there for him. Aisha, you know I keep returning to this one thing this climate researcher told me. She told me in Vienna 100 years ago. They probably didn't imagine that now there would be thousands of green social housing buildings, beautiful climate friendly apartments. They started with one building, just one building. That was their North Star.

[Aisha Rascoe]

That's NPR Climate Solutions correspondent Julia Simon. This has been a part of NPR's Climate Solutions Week. To find more stories and to see photos of the people featured in this story, go to npr.org climateweek this episode was produced by Justine Yan and edited by Jenny Schmidt. The reporting for this episode was brought to us by NPR's Climate Desk. Neela Banerjee was the editor. Fact Checking by Katie Doggart Mastering by Jimmy Keeley. Special thanks to photographer Ryan Kelman and Armin Puller. The Sunday Story team includes Andrew Mambo and our senior supervising producer, Liana Simstrom. Andrew Srulnick is our fellow. Irene Noguchi is our executive producer. I'm Aisha Roscoe. Up first is back tomorrow with all the news you need to start your week. Until then, have a great rest of your weekend.

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