Destination Services — Switzerland housing market challenges

The Swiss housing market presents a distinct set of challenges for renters and homeowners alike, as highlighted by the current state of affairs. This overview aims to shed light on the difficulties renters face, in particular, emphasising Switzerland’s high rate of tenancy.

A key issue plaguing the Swiss housing market is the scarcity of available properties, leading to fierce competition and surging prices. Renters often struggle to find suitable homes due to the combination of high demand and limited supply, particularly in major cities. Consequently, a significant number of apartments advertised on prominent real estate websites may already be occupied, with agencies sometimes neglecting to remove them from listings.

The escalating cost of rentals has become a pressing concern for Swiss renters. The confluence of constrained supply and robust demand has resulted in significant rent hikes, placing a financial burden on individuals and families seeking accommodation. It is worth noting that finding suitable rental properties can be a time-consuming process, typically spanning an average search period of 6-8 weeks.

Furthermore, the rental application process in Switzerland is arduous and highly selective. Prospective tenants are required to provide an extensive array of documentation, including personal information, financial records, and references. As a consequence of restricted budgets, individuals often find themselves only able to participate in public or group visits, where there is no option to choose a specific date or time. Such visits can attract more than 50 applicants per flat, intensifying the competition for limited housing options.

Switzerland boasts one of the highest rates of tenancy globally, with a significant majority of the population favouring renting over homeownership. Factors contributing to this trend include strict regulations, a culture of mobility, and a preference for flexibility. In cities like Zug, where available rental properties are extremely scarce (0.01% availability), considerations shift from factors such as ground floor or balcony availability to seizing any opportunity for a two-bedroom flat that becomes available.

As industry experts forecast ongoing challenges for the Swiss housing market, it is imperative to consider various factors that will influence market dynamics, including population growth, urbanisation, and global economic conditions. Developing sustainable solutions that address the needs of both renters and homeowners will be vital in ensuring a balanced and accessible housing sector in Switzerland.

In conclusion, navigating the Swiss housing market presents substantial challenges for renters, with limited availability, high demand, and rising rental costs serving as significant obstacles. The process of finding suitable housing can be time-consuming, and applicants with limited budgets often encounter fierce competition and restricted choices. These dynamics, coupled with Switzerland’s high rate of tenancy, exemplify the unique characteristics of the country’s housing market.

If you have any inquiries, please don’t hesitate to contact:

Fruzsina Hodson
fruzsina.hodson@staging.santaferelo.com
DSP Group Support Manager
Santa Fe Relocation

Séverine Piller
severine.piller@staging.santaferelo.com
Account Services Manager Switzerland
Santa Fe Relocation