It's a question that causes heated discussions among lawmakers, locals and internationals: Are expats the reason the Swiss housing crisis is so bad in places like Zurich? Now, an urban and sociology expert has revealed whether new arrivals really are to blame.
Though Zurich is one of the best places to live on Earth when it comes to quality of life, the high living standards do come at a price, especially when it comes to housing. The latest rent index from Homegate found that Zurich has seen the second fastest rent increases of any Swiss city in the last year, while in September, UBS found that the Swiss metropolis is home to the most overpriced housing in Europe, and the third most overpriced in the world.
Most, in the political arena at least, attribute the rising rental costs in Zurich to expats. For example, as part of the No 10 Million Switzerland! Initiative, the Swiss People’s Party argues that the attractiveness of Zurich and other cities as a place to live and work has led to unsustainable rates of immigration, chronic housing shortages and rising prices.
Indeed, the popularity of Zurich among new arrivals has led to demographic change: for example, as of 2024, 15,8 percent of Zurich’s population reported that English was their first language, up from 2 percent 20 years ago. But are expats really to blame for the high rental costs?
Speaking to Blick, urban researcher and professor of sociology at the Department of Architecture at ETH Zurich, Christian Schmid, said that blaming new arrivals for rising rents is too simple an approach. He noted that while immigration does impact rental costs, “the housing shortage in Zurich is chronic - and has been for almost half a century.”
Instead, other factors are more important, chiefly Zurich's economic model. "We have a headquarters economy in Zurich, with banks, insurance companies, and international headquarters,” Schmid noted. He argued that these institutions attract expats from abroad, who are typically paid a high salary so that they can afford the high rents in Zurich.
These expats then contribute to rising demand, which in turn increases prices and displaces those on lower incomes. This has been exacerbated in recent years by worker shortages, which have necessitated looking overseas for staff.
Schmid added that rather than a lack of housing across the board, Zurich suffers from a “shrinking” supply of affordable homes. In this case, he argued that landlords and developers are to blame: "Many buildings from the 1960s and 70s – solid Swiss construction – are being replaced solely for profit reasons and then rented out at higher prices, even though they would still be habitable for decades."
So, what can we do to solve the ongoing housing crisis in Zurich? For Schmid, the solution lies in “bolder planning.” “Instead of simply increasing density and demolishing existing buildings, new neighbourhoods must be created – like in the 1920s, when large-scale construction took place in Wiedikon, and later in Altstetten and Schwamendingen."
However, the professor added that the fundamental causes behind the crisis will likely remain the same, regardless of how many new homes are built. "If you don't want tech companies, banks, or global corporations, then you have to restructure the economy…But as long as Zurich is booming, the pressure won't let up,” he concluded.
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