92 percent of new Zurich apartments rented by Swiss, not expats

A new report by Sotomo has found that the majority of newly built apartments in Zurich are rented by local Swiss people rather than expats. Pushed out of newbuilds, internationals often end up renting renovated apartments, which cost 25 percent more to rent, on average.

Swiss locals rent the majority of new apartments in Zurich

The availability of housing is a hot topic in the popular Swiss city of Zurich. Many politicians often reference immigration as a reason why rent prices are increasing and housing is in short supply.  

However, a new report by Sotomo, a Zurich-based research institute, has found that new apartments in Zurich are actually mainly rented by the local Swiss population. The report defines “local Swiss” as people with Swiss citizenship or people who have lived in Switzerland for more than 10 years.

The Sotomo report discovered that, in Canton Zurich, 92 percent of newly built apartments are rented by Swiss locals, compared to just 8 percent that are rented by international residents. According to Blick, the report “dispels rumours” that internationals are disrupting the Zurich housing market.

Expats are more likely to rent renovated apartments, rather than newly built or older apartments, according to the Sotomo report. Renovated apartments typically cost 25 percent more to rent than newly built apartments, meaning that expats tend to pay higher rent in Zurich.

Expats have less time and local knowledge when apartment hunting

According to the Sotomo report, the two major reasons for the disparity are time and local knowledge. Swiss locals are more likely to rent newly built apartments because they have a better understanding of and access to the housing market. For example, local residents may know about upcoming building projects in their local area. 

In comparison, expats have less time to look for accommodation and are often unfamiliar with the local area. As a result, they often have no choice but to get “ripped off by landlords” and accept higher rental costs for renovated apartments, claimed Michael Hermann, Director at Sotomo.

As the average cost of rent increases in Switzerland and fewer apartments are available to rent or buy, suggestions on how to combat the housing crisis are getting more extreme. Earlier this year, the Swiss People’s Party (SVP) proposed that Zurich landlords prioritise Swiss citizens when reviewing tenancy applications.

The SVP proposal, ‘Right to a Homeland - Housing for our People’, was approved at a party conference and now needs 6.000 signatures before it can progress further. The proposal, however, is facing criticism. Daniel Moeckli, a law professor in Zurich, questioned the legality of the initiative because it interferes with landlord property rights and would likely break discrimination laws.