Though there is often heated debate about the ongoing shortage of housing, a new report from the Swiss Real Estate Association (SVIT) suggests that the crisis may be starting to ease. They found that the number of apartments available to rent in Switzerland has risen for the first time in three years.
According to their data, which analysed listings on all the major housing portals, 384.000 homes were advertised for rent in Switzerland between October 2023 and September 2024, 20.000 or 5,6 percent more than the same period the year before. This is the first time since 2021 that the number of available homes has increased.
Since October 2023, the number of homes being advertised for rent has risen in 21 of 26 Swiss cantons. SVIT added that housing demand in regions like Basel-Land, Appenzell Ausserrhoden, Jura, Solothurn and Neuchâtel is also starting to ease.
With reports up until now suggesting that a record low number of homes are available to rent in Switzerland, it may seem odd to see data suggesting that the housing supply is actually increasing. However, though the number of available homes has increased, the reasons behind the rise mean that the rate of vacant properties remains low, and tenants are still likely to struggle to find affordable housing.
First, SVIT noted that the increase in vacant apartments is “not due to the tendering of new apartments, but to more moves”. They mainly attributed the relocations to rental costs, which rose at their fastest rate in over 30 years between April and July 2024.
They added that following the two rises in the reference interest rate in 2023 - which allowed landlords to raise rents on those with pre-existing rental contracts - many households are leaving their existing homes for smaller, more affordable dwellings in rural regions. However, because of high population growth and low rates of housing construction, demand for homes of all prices remains high.
This is reflected in demand: SVIT noted that despite more homes being on the market, between October 2023 and September 2024, it took an average of 25 days between a home being listed and rented out, two days less than the year before. In Zurich, Geneva and Zug, it takes 16, 15 and 10 days respectively after a house is listed to be rented out.
Finally, though there are more options than last year, the homes on offer are typically more expensive. SVIT noted that in six of the 12 major Swiss cities analysed, apartments with rents less than 1.000 francs a month are increasingly rare, while supplies of 2.500 to 3.500-franc a month homes are on the rise.