Housing Crisis Looms: Over 500,000 New Homes Needed in Switzerland by 2040

Expert predictions reveal the urgent need for over half a million new homes in Switzerland by 2040 to address the housing shortage crisis.

In a recent report by Wüest Partner, the housing shortage crisis in Switzerland has been brought to the forefront, highlighting the challenges faced by families and individuals in finding affordable housing. Experts project that Switzerland will need to construct over half a million new homes in the next 16 years to meet the increasing demand.

The report revealed that only 24,200 permits for new rental apartments were approved in Switzerland last year, marking the lowest number since 2012. Canton Schaffhausen experienced the largest decline in permits compared to the previous year, followed by Vaud, Basel-Stadt, and Basel-Land. This decline in new housing construction has led to a significant decrease in the availability of rental properties, with the percentage of homes available for rent dropping to 1.15 percent on average.

According to Wüest Partner, the housing construction rate has been steadily decreasing since 2017, resulting in a projected shortage of 35,000 homes by the end of this year. It is estimated that Switzerland will need to build 522,323 new apartments by 2040 to address the growing demand.

The rising cost of buying real estate in Switzerland has also contributed to the housing shortage crisis, with apartment prices in Zurich increasing by 167 percent between 2000 and 2021. This has led to low and middle-income earners competing for the limited supply of rental properties.

Several factors have been identified as contributing to the severe housing shortage in Switzerland, including the struggle of construction firms to keep up with demand, particularly in major cities like Zurich, Basel, and Geneva. Additionally, a decline in land approved for construction, higher interest rates, slower planning permission processes, and rising construction and land costs have deterred firms from building affordable housing.

To address the housing shortage crisis, experts recommend simplifying planning permission processes and converting commercial and industrial buildings into residential properties as potential solutions to increase the housing supply in Switzerland.

The housing shortage crisis in Switzerland is a pressing issue that requires immediate attention and action to ensure that all individuals and families have access to affordable and adequate housing.