The Swiss voice in the world since 1935

Switzerland faces shortage of 51,000 homes, says study

Houses in Switzerland
Switzerland is heading towards its biggest housing shortage in 30 years, according to the NZZ. Keystone / Steffen Schmidt

By 2026 there is likely to be a shortage of 51,000 homes in Switzerland, equivalent to a city the size of Lucerne, according to an estimate by the real estate consultant Wüest Partner, cited by NZZ am SonntagExternal link.

The problem is being caused by a combination of factors: a steadily growing population (currently 8.7 million), a trend towards smaller properties and an insufficient number of new apartments and houses being built – building permits have fallen to a 25-year low.

Switzerland is heading towards its biggest housing shortage in 30 years, according to the NZZ.

The immediate result is rising housing costs for tenants, NZZ says. Although rental increases are capped by law, the shortage is driving up rents. Higher tenancy agreements are only contested on rare occasions.

+ Wealthy Switzerland is a country of tenants.

Switzerland has one of the lowest home ownership rates among the richest economies. Only around 40% of people own their own properties while the rest rent. This makes Switzerland an exception as the proportion of homeowners in Europe is routinely around two-thirds or more. 

Swiss tenants are protected by laws that restrict large rental increases, but increasing demand for apartments, especially in cities, continues to drive up rents.

+ Swiss tenants ‘ripped off’ to the tune of CHF10bn.

On February 20, the Swiss Tenants’ Association complained that landlords are profiteering by ignoring rules that limit rent rises. It said unscrupulous property owners are swindling tenants out of CHF10.4 billion ($11 billion) a year in Switzerland. The advocacy group wants lawmakers to cap “exploding” rents that is says are squeezing people on low incomes.

Popular Stories

Most Discussed

News

Renovation of Chillon Castle can continue

More

Renovation of Château de Chillon can go ahead

This content was published on The cantonal parliament of Vaud has approved a loan of CHF9.5 million ($11.5 million) for Château de Chillon, the most-visited monument in Switzerland.

Read more: Renovation of Château de Chillon can go ahead
Climate Alliance: an action plan for its 20th anniversary

More

Climate Alliance presents action plan on 20th anniversary

This content was published on The Swiss Climate Alliance has presented an action plan showing how Switzerland could make a success of the energy transition and achieve a net zero balance within ten years.

Read more: Climate Alliance presents action plan on 20th anniversary
UBS economists more confident about the economy in 2025

More

UBS economists more confident about Swiss economy in 2025

This content was published on UBS economists have revised upwards their estimates of Swiss GDP growth for the current year. However, they are more pessimistic for next year, due to the spectre of US tariffs.

Read more: UBS economists more confident about Swiss economy in 2025

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

You can find an overview of ongoing debates with our journalists here . Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR