UBS Study: Only 15% of Swiss Residents Can Afford to Buy a House
Discover the shocking findings of a new housing study by UBS, revealing the challenges faced by Swiss residents in affording a home amidst housing shortages.
A recent housing study conducted by UBS has shed light on the challenging reality facing the majority of the Swiss population when it comes to homeownership. According to the findings, only around 15 percent of people in Switzerland have the financial means to purchase a house, a stark contrast to 20 years ago when 60 percent of the population had the potential to buy property.
The study also highlighted the significant rise in average house prices in 2023, with the biggest increases seen in eastern Switzerland and Canton Fribourg. In contrast, house prices in Geneva and Basel experienced a slight decline. The report by real estate agent and consultancy Iazi further emphasized the high income requirements for purchasing a single-family home in Swiss cantons, with an annual salary of 100,000 francs now deemed necessary.
Unfortunately, the outlook for prospective homebuyers does not appear promising, as UBS predicts continued price increases due to factors such as a growing economy, rising demand for housing, low mortgage interest rates, and a persistent housing shortage. Rental prices have also been on the rise, with a 5 percent increase in 2023 and further increases expected if housing construction does not keep pace.
While Switzerland may not experience the same rapid house price growth seen during the pandemic, UBS anticipates a steady rise in costs in the coming years, particularly in 2025 as the economy continues to improve. The housing market in major Swiss cities remains challenging, with high income requirements and escalating prices making homeownership an increasingly unattainable goal for many.
The housing study by UBS paints a sobering picture of the current state of the Swiss housing market, with affordability continuing to be a major concern for the majority of the population. As prices rise and income requirements soar, the dream of owning a home in Switzerland becomes increasingly out of reach for many.
UBS Study: Only 15% of Swiss Residents Can Afford to Buy a House
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