Rents in Switzerland: +32% in twenty years, ASI sounds the alarm

Context

TL;DR

• Rents increased by around 32% in twenty years
• Rent index: +32,1% between 2005 and 2025
• Reference rate: 1,25% today
• Incomes up to 4'000 francs: 37,8% spent on rent

Key facts

• Organization → Swiss Tenants' Association (ASI)
• Occasion → International Tenants' Day
• Share renting → two thirds of households
• Index period → 2005-2025
• Index increase → 32,1%
• Reference rate → 1,25%
• Gross income considered → up to 4'000 francs
• Comparative data → eight countries, including Switzerland, according to the OECD

The figure, amounting to an increase in rents of around 32% over approximately twenty years, is what the ASI is using to draw attention to the burden of renting in Switzerland. The Keystone-ATS text reports that, on the occasion of International Tenants' Day, the association called on policymakers to take measures against the financial burden weighing on households.

In Switzerland, two thirds of households live in rented accommodation. The source adds that in no other European country is the percentage of people living in rented accommodation so high. According to the ASI, the rent index rose by 32,1% between 2005 and 2025. During the same period, mortgage rates reached an all-time low. The reference rate is currently 1,25%. Since rents are legally indexed to this rate, many rents should have fallen; the association deplores the fact that they have continued to rise. The ASI sees this discrepancy as the central point of the warning.

The burden on lower incomes

The pressure is concentrated among households with low and medium incomes. People whose gross income does not exceed 4'000 francs spend 37,8% of their income on rent. OECD data relating to eight countries, including Switzerland, also indicate that one in two low-income renting households spends more than 40% of its disposable income on housing.

The ASI also points to the shortage of affordable housing. In 2000, 57,3% of rental housing belonged to private individuals; in 2024, the share had fallen to 43,2%. Over the same period, the share owned by investment companies rose from 28,7% to 44,4%. According to the association's analysis, these companies achieved high returns through the real estate sector.

The demand is for a political change of course, with the application of the principle of cost-based rents, a strengthening of the Lex Koller and a greater number of public-benefit housing units. Finally, the ASI criticizes the Federal Council's indirect counterproposal to the Rent Initiative: according to the association, it would lead to an even sharper increase in rents.

Operational details

From statistics to the household budget

An average increase in the index does not have the same effect on every contract. For a family, the real burden depends on the ratio between rent and disposable income, precisely the point that emerges from the comparison between the 37,8% recorded for gross incomes up to 4'000 francs and the OECD figure: one in two low-income renter households spends more than 40% of its disposable income on rent. Housing thus becomes an expense that affects the cost of living, especially as affordable housing becomes scarcer. To assess this pressure alongside other expenses, costo della vita in Svizzera is available.

Before and after in housing ownership

| Ownership of rental housing | 2000 | 2024 | | Private owners | 57,3% | 43,2% | | Property-owning investment companies | 28,7% | 44,4% |

The comparison shows a shift in the ownership structure without describing any individual building or individual contract. The share of private owners has decreased, while that of investment companies has grown. These data do not link every rent increase to a specific owner. ASI, on the other hand, states that investment companies have achieved high returns thanks to the real estate sector.

The shift from one form of ownership to another does not allow the price of each apartment to be inferred. It does, however, show the change accompanying the association's demands: more transparency regarding the relationship between cost and rent, less inflow of financial capital into the residential market, and more public-interest housing.

For those looking for or already occupying a home, ASI's proposals fall into three directions: applying the principle of cost-based rent, strengthening Lex Koller to curb the inflow of financial capital into the residential real estate market, and increasing public-interest housing. These are political demands, not a description of a new individual rent.

The reference to the Federal Council concerns the indirect counterproposal to the Rent Initiative submitted by ASI. The association criticizes it because, in its view, it would produce an even more pronounced increase in rents. The distinction between proposal, counterproposal and ongoing contract serves to avoid confusing the national debate with the situation of a single household.

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Key points

Practical checks for tenants

The national percentage is not enough to assess the rent for a single household. For an orderly check, it is advisable to separate the ASI data from the checks on the contract and the federal tenancy rules, which are the same in all Cantons.

Four checks to carry out

1. Organize the data. Gather the lease, the latest rent statements and the family’s gross income. If the income does not exceed 4'000 francs, compare the share allocated to rent with the 37,8% indicated by ASI. The comparison does not by itself establish a new rent, but it makes the burden on the budget measurable. To read the items in busta paga svizzera, use the amounts actually shown in your documents.

2. Check the cited rate. The source recalls that rents are indexed by law to the reference interest rate and indicates 1,25% as the current level. Compare the rate reported in the documentation with the rent charged. The ASI text does not provide a formula for turning the national figure into an individual rent: therefore, avoid automatically deriving a request from the percentage alone.

3. Check the deposit. In Swiss tenancy, the security deposit may not exceed three months’ rent and must be paid into a blocked account in the tenant’s name. This check concerns the security for the contract, not the general trend of the rent index.

4. Check any termination notice. The landlord’s termination notice is valid only on the official cantonal form. If it is contested, the deadline is 30 days before the conciliation authority. Keeping the form and noting the date of receipt helps ensure that the deadline is met.

When following public proposals, note separately whether they concern cost-based rent, Lex Koller or public-utility housing: these are three distinct demands by ASI. To link the burden of housing to monthly income, use calcolatore stipendio.

Source: swissinfo.ch