Companies worried by Zurich housing shortage

Housing supply in the city of Zurich also worries companies Keystone-SDA

Companies are dissatisfied with the housing situation and tax burden in the city of Zurich. A survey has also shown that many companies expect the city's attractiveness as a business location to decline. On the other hand, they view the quality of life positively.

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Overall satisfaction was rated at 4.65, with 6 being the highest possible score, the city of Zurich announced on Tuesday. This is the lowest score of all surveys to date, Daniela Wendland from Zurich City Development told the media.

In addition to the real estate market (score of 2.4) and the tax burden (score of 3), respondents also criticised aspects of motorised transport and the price level. The city emphasised that only just over half of the companies described the housing situation as a problem. In contrast, the tax burden was a problem for significantly more companies (over 70%).

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In addition to quality of life, companies also highlighted public safety, customer potential and digital infrastructure as positive factors. The companies themselves also performed well: 35% increased their turnover in the last two years. For 39%, it remained the same.

Companies are fairly satisfied with the municipal and cantonal administration. According to the report, most departments received a grade of at least 4. However, respondents would like to have a greater say in economic policy issues and changes at the location. Only 16% are satisfied in this regard.

The world has changed a lot since the first survey in 2005, said Mayor Corine Mauch, adding that the many uncertainties are likely to be reflected in expectations. “The location is still considered good, but there are warning signs,” she said.

Even more optimistic in 2021

A total of 1,499 companies and self-employed people out of around 4,000 respondents took part in the sixth survey. Zurich has a total of over 50,000 businesses. According to the report, the results will be incorporated into the city’s strategic development.

In the last survey in 2021, the overall score was 4.88. At that time, 1,436 companies were rather optimistic about the future. However, manufacturing companies gave the city an average score of only 3.49. The reasons for this were the difficult and congested traffic conditions, a lack of space, and the many requirements and regulations imposed by the city authorities.

Manufacturing companies were even more dissatisfied in 2025. They gave the city a score of only 3.17. Among other things, they cited high rental costs and a lack of space, traffic and accessibility as reasons for this; 16% of those surveyed considered themselves to be manufacturers.

Criticism from the associations

The trade association was critical. “We see things as somewhat less rosy,” said Nicole Barandun, president of the Zurich Trade Association, to the media. The result could certainly be better, she said. Never before have so many companies expected a decline in location attractiveness. The parking situation is rated very poorly, Barandun said. The trade association is dependent on it.

The City Association was also not very enthusiastic. Accessibility is a key factor, it said. “The city centre thrives on accessibility, diversity and footfall. If these factors come under pressure, it directly affects its future,” said the association’s president, Milan Prenosil.

There is also growing frustration about administrative and regulatory hurdles. “Zurich is strong, but that cannot be taken for granted,” explained Prenosil. For a vibrant city centre, the needs of retail and gastronomy must be taken into account.

Without logistics, there would be no industry, said Patrik Meli, president of the Zurich Industry Association. Materials must be able to be delivered reliably. “We need planning security and functioning framework conditions,” said Meli.

Adapted from German by AI/ts

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