On the one hand, Austrian social housing is stronger than ever due to the growing importance that social rental apartments play on the housing market. The volume, price, and quality standards of this housing are competitive with what is found in other sectors of the market and the social housing sector also helped to mitigate the effects of the Global Financial Crisis (GFC). On the other hand, pressure on the rental housing market has increased because demand for cheap housing has grown more than supply. The social housing sector thus has to address the vital question of how to increase targeting on low-income households and vulnerable groups and at the same time to maintain social mix and public support. In this paper I argue that the sector, in spite of its strong position, is facing some common European challenges that will redefine its role in the future. Yet, the social housing sector is overburdened if expected to solve many problems that have arisen due to non-housing issues.