The city of Vienna is facing major challenges with respect to meeting its obligation of providing an adequate range of suitable housing as a result of current social/demographic developments. The commodity “housing” forms the basis for a well ordered coexistence of different people, groups and social classes. Therefore the state in this case The Republic of Austria takes measures to ensure provision of an adequate and appropriate choice of housing. One instrument to meet the challenges of this social, economic and environmental task is the provision of housing subventions, which aim to ensure availability of housing that is affordable, of high quality in terms of meeting modern building standards and fit for purpose. Provision of housing subventions in Austria has been subject to continuous changes, which, inter alia have resulted in progressive transfer of responsibility from federal to regional (state) level over the course of the last decades. Also the subvention system has been modified, whereby the restriction of use of the subventions for building purposes has been relaxed. The aim of this thesis is to evaluate and analyse the importance, effectiveness, and the influence of state funded housing subventions for the Viennese housing situation, taking into account current developments, and with reference to specialist literature, legal provisions and statistical data. The conclusion of this work is that the existence of housing subventions in Vienna is an indispensable factor in the provision of a functioning housing market.