Accommodation market in Switzerland: the situation is getting worse (cross-border guide)

Context

In a nutshell

• The situation on the housing market in Switzerland is worsening according to the FOBA.
• Increase in the number of household economies greater than new construction.
• Between 1990 and 2025 the overall population grew by 37%.
• High tensions in Zurich, central Switzerland and in several mountain regions.

Key facts

• Entity: UFAB
• Population growth 1990-2025: 37%
• Growth attributed to the Swiss: 15 percentage points
• Growth attributed to foreigners: 22 percentage points
• Availability of 2012 building areas: 9.9%
• Availability of 2022 building areas: 6.9%
• Incidence of foreign domestic economies on the total: 21%
• Removals share of foreign domestic economies: 39%
• Foreign real estate: 12%
• Swiss real estate: 42%

The situation on the housing market in Switzerland continues to worsen: this is the conclusion reached by the Federal Office of Housing (FOHA), based on constant monitoring of the market. The authority said in a statement today that the scenario remains particularly critical for household economies with low purchasing power. The greatest difficulties occur in the metropolitan area of Zurich, central Switzerland and in several mountainous regions of the country. The federal agency explained that one of the main reasons lies in the fact that too little is built to keep up with the increase in the number of household economies.

Demographic dynamics and land consumption

Analyzing

Operational details

Mobility and characteristics of foreign households

The survey conducted by the federal body highlights significant behavioral and structural differences among households. In particular, foreign households, defined as those in which no member holds a Swiss passport, show a markedly higher mobility compared to Swiss ones. While representing about 21% of the total on the territory, these families account for as much as 39% of those who move. Ceteris paribus, foreign households occupy about a quarter less living space per capita compared to Swiss residents. In 2025, their average size was 2.08 people, a figure slightly lower than the other types of family units present on the national market.

Rental market dynamics and rent expenditure

Another crucial aspect highlighted by the monitoring concerns the relationship with real estate ownership and the rental market. Foreigners depend to a much greater extent on the rental market: only 12% of foreign households own a home, compared to 42% recorded among Swiss households. Since foreign-origin households move more frequently and enter into rental agreements that are on average shorter, they benefit less from the lower rents typical of long-term or older contracts. Consequently, in relation to disposable income, the expenses incurred for rent tend to be proportionally higher, exposing this group of residents more to the fluctuations and price increases of the Swiss real estate market.

Recommended tools

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Key points

Future prospects and rental price trends

Looking ahead to the coming months, forecasts formulated by Federal Housing Office experts for 2026 indicate growth that is still defined as too weak regarding the overall available housing stock. However, a sign of a trend reversal comes from the increase in housing applications and building permits recorded starting from 2024: this data suggests that, starting in 2027, the number of newly completed homes should return to rise more sustainably. Nonetheless, analysts warn that no rapid easing of overall tensions on the Swiss real estate market is in sight. During 2026, low interest rates and modest inflation will guarantee substantially stable rental prices for existing contracts, while for new rental contracts, significantly higher prices will continue to be recorded.

Financial planning and housing costs

To face a real estate market characterized by reduced supply and rising rents for new contracts, residents in Switzerland must carefully evaluate their asset and income situation. Family budget management requires rigorous planning of fixed expenses, taking into account the percentage impact of the rent on the monthly net income. To delve deeper into the impact of fixed housing-related costs on the overall budget and to evaluate one's economic situation in light of Swiss market dynamics, it is advisable to consult the economic analysis tools available online. Calculate your overall expenses and plan your budget with the cost-of-living.

Source: swissinfo.ch