Switzerland's housing crisis intensifies, particularly in certain regions
In the Swiss real estate market, a significant shift has been observed as vacancy rates continue to decline. According to recent data, the number of vacant homes has decreased by 6.8% compared to the previous year, with a total of 48,455 vacant homes as of June 1st, 2021 - less than 1% of the country's housing stock.
The trend is evident across Switzerland's major regions, where housing availability tightened further in June compared to the previous year. The steepest declines in vacancy rates were recorded in the Ticino region and the Lake Geneva region.
In the rental market, a total of 37,194 unoccupied flats were available for rent in June, marking an 8% year-on-year decrease. The number of available rental flats decreased in 19 cantons, while it increased in six, and remained unchanged in one canton. Geneva had the lowest vacancy rate in the country at 0.34%, followed by Zug (0.42%) and Zurich (0.48%).
The supply of vacant rental apartments has fallen continuously over the past five years, with declines ranging from 8.4% to 15.9%. This trend is reflected in the number of vacant new-build flats advertised for long-term rent or sale, which decreased by 6% compared to the previous year, totalling 3,959 units.
In the sales market, the number of unoccupied single-family homes offered for sale fell slightly by 0.4%, with a total of 6,797 single-family homes vacant in June. 15 cantons reported vacancy rates below 1%. Jura (3.03%) and Solothurn (2.05%) were the only cantons with vacancy rates above 2%.
Fredy Hasenmaile, chief economist at Raiffeisen, commented on the situation, stating that the greater the pressure, the greater the dissatisfaction with the market. However, there are signs of improvement. The strongest improvements in the housing situation are seen in the normalization of financing conditions, especially for existing properties with lower margins and increased private real estate financing by about 40% in the first half of 2025, indicating a stabilization and slight recovery in the German housing market despite continuing supply constraints and high construction costs.
In an effort to relieve the ongoing shortage of affordable rental accommodations, a move is being made in Zurich to build 122 new apartments in the Kreis 4 district, scheduled for occupancy next summer. These new apartments will provide housing for around 360 people, with a four-room apartment costing 1,850 francs per month and a three-room one costing 1,590 francs.
This marks a continuous effort to address the housing shortage that affects not only newcomers but also families and individuals trying to relocate. As the market continues to evolve, it is expected that more initiatives will be taken to ensure a balanced and accessible housing market for all.
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