Shortage of accommodation in Switzerland: between 2026 and 2027 (cross-border guide)

Context

In a nutshell

• Increase in residential construction in the two-year period 2026-2027
• 45,000 units expected in 2026 and 50,000 in 2027
• In 2025, an estimated increase to only 39,000 homes

Key facts

What: Growth in residential construction When: Biennium 2026-2027 Forecast 2026: Approximately 45,000 housing units Forecast 2027: Approximately 50,000 housing units Minimum level: 39,000 homes estimated in 2025 Data source: Wüest Partner

In a context characterized by a sharp increase in the population in Switzerland, there is currently a marked shortage of housing which, however, could soon diminish in some regions of the country. This is what emerges from a study published by the real estate consulting firm Wüest Partner, according to which the lowest point in housing construction should be overcome in the coming years. The research offers a detailed overview of the future prospects of the Swiss real estate market, outlining a recovery in residential building production after years of contraction.

# Estimates and comparison with previous years

Analyzing the data provided by the Federal Statistical Office (FSO), in 2024 the net increase in housing in Switzerland was just 40,000 units. The situation registered a further slowdown for the current year, with an estimate made by Wüest Partner indicating an increase of only 39,000 housing units for 2025, marking the lowest level recorded since 2009 to date.

Operational details

The foundations that have made this future recovery of the Swiss construction and real estate sector possible were laid several years ago. According to the analysis released by Wüest Partner, the development process began in 2020, a year in which the number of vacant dwellings, after increasing for a long period, began to decline rapidly. At the same time, there was a net growth in the market value of residential properties. These specific market conditions generated strong economic incentives for the construction of new housing projects, simultaneously stimulating further development initiatives nationwide.

Slowdown factors and project timelines Despite the initial impetus generated in 2020, several years usually pass from the time a construction project is conceived to the actual delivery of the finished home. The main reasons for this timeline include greater complexity in the planning and construction of new housing, caused by the introduction of additional building regulations, as well as rising construction costs and interest rate trends. These factors acted temporarily as a brake on the sector. In the meantime, however, many of the projects initiated and developed since 2020 have overcome the complex preliminary phases and are now close to completion, paving the way for the increase in deliveries expected for the 2026-2027 period and helping to give new breath to the market.

Recommended tools

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Key points

The recovery in housing production will not affect all regions of Switzerland with the same intensity and timing. During 2026, the increase will remain rather localized at the regional level. In fact, the production of new housing is expected to exceed the long-term average primarily in individual cantons of Western Switzerland and in the alpine regions. It will instead be necessary to wait until 2027 for the recovery to gain greater geographical breadth. In particular, in cantons such as Thurgau, Geneva, Valais, and Neuchâtel, a strong increase in the number of available apartments is expected, and large parts of the Plateau should also benefit positively from this evolution of the real estate market.

Challenges in major centers and the future outlook

Despite the positive signs for the 2026-2027 biennium, significant territorial differences remain. In about half of the Swiss cantons, housing production will continue to remain below the long-term average. Real estate experts also emphasize that a generalized easing of tensions is not yet on the horizon and that the situation in the housing market is expected to remain particularly difficult, especially within major urban centers. Added to this is an additional element of caution: building permits currently registered do not suggest any further acceleration in housing production for the year 2028. To learn more about real estate market trends and evaluate housing-related costs, you can consult the details on the cost of living in Switzerland.

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Source: tio.ch