Rental Costs in Switzerland Surge by Over 5% Annually

Discover the latest data on the rising rental costs in Switzerland, increasing by more than 5% each year. Stay informed on the current trends.

A recent report released by housing platform Homegate and the Zürcher Kantonalbank (ZKB) has revealed that the cost of renting a house or apartment in Switzerland has continued to climb steadily over the past year. The data shows that rental prices in Switzerland have increased by an average of 5.9 percent between May 2023 and June 2024, with a further 0.4 percent rise in the last month alone.

The report highlights that no area in Switzerland has seen a decrease in rental costs over the past year. In fact, the biggest increases in rental prices were reported in Schwyz and Glarus, where prices rose by 1 percent in the last month. Lucerne saw the largest increase among cities, with a 2.5 percent rise compared to April 2024.

On the other hand, Graubünden experienced a 2.1 percent decrease in rental costs this month, although prices are still 8.2 percent higher compared to June of last year. Only Lugano reported a decrease in rental costs in May, but prices are still 3 percent higher than a year ago.

Looking at the annual figures, Canton Schaffhausen saw the largest increase in rental prices at 10.8 percent, followed by Canton Zurich (8.7 percent), Zug (8.9 percent), and Graubünden (8.2 percent). Lucerne experienced the fastest rental price increase among cities at 8.8 percent over the past 12 months.

Experts attribute the significant rise in rental costs to a shortage of housing in Switzerland. Housing experts predicted that Switzerland will need to build over 500,000 apartments by 2040 to meet the growing demand.

The report indicates that rental costs in Switzerland continue to rise across cities and cantons, with no signs of a decrease in sight. The housing market in Switzerland faces challenges due to the lack of available housing, leading to higher rental prices for residents.