Swiss show high willingness to pay for sustainable flats

High willingness to pay for sustainable flats Keystone-SDA

Tenants in Switzerland are in favour of sustainable flats. However, the willingness to pay for them differs depending on income, as a new study by the University of St Gallen shows.

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Swiss tenants appreciate flats with good thermal insulation. And when it comes to heating systems, heat pumps are much more popular than oil and gas. On average, tenants would be prepared to pay around CHF4 ($4.50) more per square metre per month for a very well insulated flat than one that is only well insulated.

Respondents with a household income of less than CHF4,500 would pay an average of CHF3.30 more per square metre for such a flat. People with a medium income (CHF4,501-9,000) have a similarly high willingness to pay. Affluent households with an income of over CHF9,000 would even pay a premium of over CHF6 per square metre of living space.

Solar systems also popular

Willingness to pay is also evident for solar energy systems. Some 56% of study participants would be prepared to invest in a solar installation on the roof of their rented flat.

The willingness to contribute financially to the construction is highest among households with an income of over CHF9,000 (72%). However, 46% of people with a medium income and 54% of people with a low income would also be prepared to pay a contribution towards the installation of a solar energy system.

“As with all studies with stated preferences, when interpreting these values it should be noted that the willingness to pay realised on the market is influenced by other factors,” explains study author Rolf Wüstenhagen when asked by the news agency AWP. He cites supply and demand on the local housing market and the location of the flat as examples.

Over 1,000 tenants from Switzerland were surveyed for the study. According to the authors of the study, the results are representative.

Translated from German by DeepL/jdp

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