Zug: economic promotion halted, 272 apartments under 1800 francs

Context

In brief

• Urban Keiser calls for an end to economic promotion in Zug
• Korporation Zug is building 272 affordable apartments
• A 3,5-room apartment costs less than 1800 francs
• Canton elections will be held on 4 October

Key facts

• Who → Urban Keiser, president of Korporation Zug
• Where → Canton Zug
• What → End to economic promotion
• Housing → 272 apartments
• Rent → Less than 1800 francs for 3,5 rooms
• Elections → 4 October
• Outlook → Population increasing by 50% in 20 years

The 61-year-old Urban Keiser, president of Korporation Zug, is calling for an end to economic promotion in the canton of Zug. In his view, growth has driven housing costs up to an intolerable level. The statement is contained in an interview published by Tages-Anzeiger.

Korporation Zug is a public-law community similar to a Ticinese patriziato, but extending across the entire canton. It is the canton’s largest landowner and builds affordable apartments.

An offer that is not enough

Keiser recalls that until about 20 years ago, local residents were able to find housing. Today, it has become difficult. For this reason, the corporation is developing a residential complex with 272 apartments. The rent for a 3,5-room apartment costs less than 1800 francs and immediately generated a long waiting list.

The allocation follows clear criteria. Keiser cites minimum occupancy and explains that people who grew up in Zug have priority. He admits that this choice might not be politically correct, but says that the corporation proceeds this way.

The city’s catchment area, according to the interviewee, is the entire world. He points to three reasons: low taxes, a safe environment and enchanting landscapes. In his view, 100'000 apartments could be built and all of them sold. Since demand cannot be met, it remains possible to manage the allocation.

Keiser says he has almost no contact with the Expats, high-income foreign workers who converge on Zug. He acknowledges the decline of German in some places, the changing nature of urban life and the loss of customs, such as selling the Carnival newspaper early in the morning. «These things cannot be stopped», he maintains.

Incentives and crafts

Regarding growth, Keiser replies: «Absolutely not. In fact, economic incentives could be abolished altogether». He criticizes the welcome given to new companies: when a start-up or cryptocurrency company arrives in Zug, the state council almost as a whole goes to shake hands. In his carpentry business, which is nearly 100 years old, he would not have seen anyone. Craftspeople would by now be a curiosity.

Operational details

The growth fueling the housing crisis

The story of Zug sets two effects of the same policy against each other: economic attractiveness and the difficulty of finding a home. Growth creates demand, but housing availability does not keep pace. For those observing the cost of living in Switzerland, the concrete issue is the relationship between an affordable rent and demand far exceeding supply.

The interview describes a city capable of attracting people from all over the world thanks to low taxes, a safe environment and enchanting landscapes. The pressure therefore concerns not only those looking for a new home. It also concerns the possibility of allocating housing when the number of requests exceeds the number of available homes.

Land, regulations and timeframes

Keiser argues that only those who own land can build housing and observes that politicians, obviously, do not. The criticism concerns the transition from promises to implementation: according to him, the corporation sees no concrete evidence of the support it received, while regulations are being tightened.

In the case described, the result would be slower and more expensive construction. The corporation reportedly experienced this with a project dragged out for 20 years. For a family or a worker looking for a home, such long timeframes make future availability uncertain and leave the waiting list as a sign of the existing pressure.

The issue cannot be resolved simply by increasing the number of apartments. The source also shows the role of selection: minimum occupancy and priority for people who grew up in Zug are criteria used to manage demand that, according to Keiser, cannot be fully met.

Wealth and social transformation

The interview also connects the housing crisis to inheritances. If a clause is missing and one child wants to receive money, the siblings may no longer be able to pay them because prices have risen so much. The house is then sold, usually to foreigners. Rising property prices therefore change not only access to rental housing, but also the possibility of keeping a property in the family.

On 4 ottobre, there will be cantonal elections. Keiser observes that all parties make housing their flagship issue, but believes that little will change because politicians do not own land. To compare the tax burden on the budget, calcolatore imposte is available.

His forecast for the next 20 years includes a population increase of 50%, more skyscrapers in the center, the loss of some traditions and an even more conservative canton. The lower social classes, according to Keiser, will be even more marginalized. He defines this process as «Monacoisierung», a transformation toward a reality similar to the Principality of Monaco.

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Key points

From the news to a concrete decision

The source does not indicate a portal, office or procedure for submitting a housing application. For those considering a home in Zug, however, the available information can be organized without adding requirements not mentioned in the interview.

Four checks before taking action

1. Identify the Korporation Zug residential complex described in the source and distinguish this project from the canton’s generic housing supply.

2. Use the rent indicated for a 3.5-room apartment as a reference: less than 1800 francs. However, the amount does not mean immediate availability, because the project has produced a long waiting list.

3. Verify the allocation criteria explicitly cited. The corporation considers minimum occupancy and gives priority to people who grew up in Zug. The source does not list any other requirements or documents, so it is not correct to add them.

4. Consider waiting as part of the search. The affordable price may attract many requests, and allocation management becomes necessary when demand exceeds the number of housing units.

For those who already own a property, the action indicated by the interview concerns the contract. Keiser considers a fairly solid agreement necessary so that the house remains in the family. If a clause is missing and one child wants the money, the other siblings may no longer be able to afford it after the price increase. In that case, the property is sold, usually to foreigners.

Reading election proposals also requires a concrete check. On October 4, voters will choose the cantonal parliament; according to the source, all parties have made housing their flagship issue. It is therefore worth checking whether a promise considers land availability, construction timelines and the effect of stricter regulations, the three elements indicated by Keiser.

To compare the burden of housing on the family budget, use the calcolatore stipendio from Frontaliere Ticino.

Source: swissinfo.ch