Swiss government outlines its plan to stem affordable housing shortages

Switzerland outlines its plan to stem the housing crisis Keystone-SDA

On Thursday, the Federal Housing Office (FHO) outlined its plan to curb housing shortages. It includes a number of measures to boost public housing.

The shortage is no longer confined to the cities, but is affecting the whole country. It is primarily penalising low-income earners and increasingly the middle class, said FHO director Martin Tschirren to the press. The vacancy rate has dropped from 1.72% to 1% between 2020 and 2025, and rents have risen by 23.7% between 2009 and 2023.

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The government believes that building more public housing will help to keep prices affordable. In recent months, it has taken a number of steps in this direction.

In particular, the governing Federal Council wants to increase the revolving fund, which is used to grant loans to non-profit building owners for the construction, renovation and purchase of property. The fund is to be increased by CHF150 million from 2030. “This measure will enable us to meet the demand for loans, which has doubled in recent years,” explained Tschirren.

Thanks to the working capital, 1,400 homes come onto the market every year. However, according to an estimate by the director of the FHO, between 5,000 and 6,000 homes are needed each year to meet demand.

In December, the government also decided to maintain the funding envelope used to guarantee the construction of public housing. It also decided not to cut support for public housing, as envisaged in the savings plan.

For its part, the Swiss Association of Public-Benefit Housing Developers believes that the Federal Council lacks ambition. The additional amount earmarked for the working capital fund is not enough to meet demand, which has reached record levels in recent years, it says in a press release. At least CHF300 million would be needed.

Credits for guarantees also need to be increased. The federation estimates that CHF2.3 billion will be needed to meet actual demand, while the Federal Council puts the figure at CHF1.92 billion.

Adapted from French by AI/ac

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