Swiss Tenants Affordability Report: Quarter Can't Afford to Move

A new study from real estate consultancy Wüest Partner reveals that over a quarter of Swiss renters cannot afford to move apartments due to rising rental costs. Learn more about the challenges faced by Swiss tenants in this report.

A recent study conducted by real estate consultancy Wüest Partner has revealed that a significant portion of renters in Switzerland are unable to afford to move apartments. The rising cost of renting a house or apartment has made relocation financially unattainable for many individuals, with no immediate relief in sight. The study aimed to assess the social sustainability of the housing market in Switzerland by analyzing the affordability of moving homes for different households.

According to the report, approximately 28 percent of Swiss households are unable to afford to move homes in 2024. This percentage increases to 60 percent for single retirees and single-parent households. The city of Geneva was identified as having the most severe housing affordability crisis, with 56 percent of households unable to relocate. Similarly, 40 percent of tenants in Zug and 37 percent of renters in Zurich face challenges in affording a move.

The housing shortage in Switzerland is expected to worsen in the coming year, as indicated by a report from real estate firm Fahrländer Partner Raumentwicklung (FPRE). The average asking rent for new apartments has already increased by 1.5 percent in the first quarter of 2024, with a 7.5 percent rise compared to the same period last year. The report highlighted a lack of new rental apartments being built, coupled with a decrease in construction activity and available homes for rent.

The Swiss government's plan to address the housing shortage, announced by Economic Minister Guy Parmelin in February 2024, has faced criticism for being vague and influenced by real estate and construction lobbyists. Calls have been made for the plan to be reassessed, with some suggesting that the Federal Housing Office be transferred to Interior Minister Elisabeth Baume-Schneider for better oversight.

The housing market in Switzerland is facing significant challenges in terms of affordability and availability. As the demand for housing continues to outstrip supply, it is crucial for policymakers to implement effective measures to address the housing shortage and ensure sustainable living conditions for all residents.