OECD urges Bern to take the initiative on rents

The OECD has put its finger on the sore spot in the Swiss housing market. In its country report dated 15 September 2026, it calls for a faster pace of construction and more delicate intervention regarding rents for existing properties. This is precisely where the real flashpoint lies for politicians, landlords and tenants.

The new country report places an unusually strong focus on the housing market. The OECD attributes the tight situation not only to the slow pace of construction, but also to regulations that offer significantly greater protection to existing tenancies than to newly advertised flats. In doing so, it touches on a particularly sensitive political issue.

This assessment comes at a time when the market is becoming even tighter. On 16 September 2026, the Federal Office for Housing noted that the situation had worsened further in 2025 and during the first half of 2026. For 2026, the Monitor continues to anticipate insufficient growth in the housing stock. At the same time, rents under existing tenancies remain largely stable due to low interest rates and low inflation, whilst further rent increases are expected for newly let flats.

Existing rents in the spotlight
This is precisely the gap the OECD is targeting. It recommends easing tensions in the housing market through a reform of rent control. In the report, it explicitly cites rent controls – alongside planning law, planning permission procedures and property taxation – as an area where uncertainties and barriers should be removed. The crux of the criticism is clear. If existing rents rise much more slowly than advertised rents, households are more likely to remain in flats they do not wish to give up for financial reasons. This prevents people from moving house and makes it harder for those who rely on securing new tenancies to find accommodation.

For the property sector, this is more than just a socio-political debate. Bringing existing rents and market rents closer together would have a direct impact on property management, investment calculations and tenant turnover. At the same time, any reform would be legally tricky, as protection against unfair rents remains central to the Swiss system.

Bern is moving more quickly on construction
The second part of the OECD’s criticism is less ideologically charged. The Federal Council had already decided on 22 April 2026 to introduce measures to accelerate housing construction. It intends to restrict the right of private individuals to lodge objections to building projects, impose stricter penalties for abusive objections, and have the DETEC draw up a consultation draft by the end of 2026. At the same time, the federal government makes it clear that much of the power lies with the cantons and municipalities, as they are responsible for planning and building permit procedures.

This is precisely where the political asymmetry lies. When it comes to housing construction, the OECD is merely stating the obvious in Bern. When it comes to tenancy law, the history is considerably more difficult. As early as 2015, the organisation had recommended bringing existing rents more into line with market conditions. The new report thus demonstrates one thing above all: international pressure is mounting once again, whilst the domestic political deadlock over Swiss tenancy law persists.