Housing shortage to worsen in 2026, according to Swiss government

The director of the Federal Office for Housing (Bundesamt für Wohnungswesen) has predicted that the housing shortage in Switzerland is likely to worsen in 2026. Government measures to address the crisis are aimed at the medium- to long-term.

Swiss housing crisis to worsen in 2026

Martin Tschirren, director of the Federal Office for Housing, has commented that he expects the housing shortage crisis in Switzerland to get worse in 2026. “I don’t see a rapid improvement at the moment”, said Tschirren in an interview with Blick.

Tschirren explained that the main causes of housing shortage are population growth, immigration, economic development and a low number of houses being built. These “cannot be changed so quickly”, and the government “cannot solve this alone”. 

Furthermore, 2025 also saw a slowdown in economic development, partly due to the uncertainty surrounding US import tariffs on Switzerland. “If the economy picks up again somewhat, the demand for labour, and therefore also for housing, will tend to increase.”

Swiss government focuses on long-term solutions

The federal government has created an action plan with 30 measures, aiming to increase the number of houses available and offer more affordable housing. However, these measures are focused on the medium- to long-term, continues Tschirren. 

In June 2025, the Federal Statistical Office (FSO) reported a 6,8 percent drop in the number of vacant homes in Switzerland compared to 2024. The vacancy rate now sits at around 1 percent, meaning that there are fewer apartments and houses available to rent or buy. A lack of housing has also resulted in rising rental costs and house prices, particularly in populated cities like Zurich and Geneva.