Renting in Switzerland: Where have costs risen (and fallen)?

With the Swiss housing shortage continuing unabated, the latest data from Homegate has revealed where the cost of renting a house or apartment in Switzerland has risen the most. While many areas have seen rental costs soar, some regions have reported lower prices in recent months.

Average rental costs rise across all Swiss cantons

According to its latest rent index, compiled in collaboration with the Zürcher Kantonalbank, Homegate revealed that the average cost of renting a home in Switzerland has increased by 1,7 percent between May 2024 and May 2025. High demand and a lack of new housing construction and regulation have combined to form a toxic situation for anyone who wants to move to Switzerland or relocate within the country.

While rents varied from region to region, all 26 Swiss cantons saw average rental costs rise in the last year. This is the “first” constant and consistent nationwide increase seen “for some time,” the property platform told Blick.

Zug and Nidwalden the worst affected by rising rents

In the last year, Canton Zug has seen rental costs rise the fastest, by 7,1 percent since May 2024. This is perhaps not surprising, given that a 2024 Federal Statistical Office reported that a quarter of Zug’s population has left in the last 10 years, with many blaming skyrocketing rental costs. 

Zug’s housing crisis has been attributed to its extremely low taxes, high salaries and its lack of construction and affordable homes. Canton Nidwalden took second place in the annual list, with average rent increases of 6,9 percent. 

When it comes to cities, Lugano has experienced the strongest rent rises (5,2 percent), followed by Zurich (4,4 percent). Graubünden and both Appenzells have seen the fastest increases recently, at 1,5 percent each between April and May 2025.

Have any asking rents gotten cheaper in Switzerland?

While the annual picture looks bleak, rental costs have declined in some parts of Switzerland in recent months. In Schwyz, prices have fallen by 2,1 percent on average between April and May 2025, dropping rents down to where they were in December 2024.

Geneva has also seen its year-on-year costs drop by 0,6 percent. However, the westernmost city was the only large centre in Switzerland to report a fall in asking rents.