The catalyst is a municipal study that compares two benchmarks. According to the study, a rent is considered affordable if, including service charges, it accounts for no more than 30 per cent of gross income. It is considered affordable by market standards if the net rent is at least 25 per cent below the average for a property of the same size. It is precisely this distinction that Merlo now wishes to have disclosed in terms of monthly amounts in Swiss francs.
On 8 October 2026, the City of Lugano published two new analyses of the housing market. One of these examines the housing market from 2019 to 2025 and the demand for flats with moderate rents. Consequently, the political dispute does not centre on an old policy paper, but on a newly presented set of data that could now have practical implications for housing policy and project development.
Two definitions, many unresolved implications
The issue is particularly contentious for households earning less than the income examples simulated in the study. Among other things, Merlo is calling on the City Council to clarify how the situation would change if the affordability threshold were set at 25 per cent of gross income rather than 30 per cent. For property owners, developers and the authorities, this is more than just a dispute over figures. Depending on the definition, the size of the segment of genuinely affordable housing in Lugano shifts.
The debate revisits an older municipal framework. In housing policy documents and for municipal social benefits, guideline figures of 1,420 Swiss francs for a single person, 1,670 Swiss francs for two people and 2,004 Swiss francs for three or more people apply, in each case including service charges. However, these figures merely represent upper limits for specific circumstances and do not automatically answer the question of whether a flat remains genuinely affordable for those on lower incomes.
PSE takes centre stage
The issue is creating additional pressure at the Polo sportivo e degli eventi in Cornaredo. According to reports, the private partner there had agreed at the end of March 2026 to offer around 11 per cent of the residential space as flats priced at around 10 per cent below the average. This is precisely where Merlo’s enquiry comes in. She wants to know what average the city is basing its calculations on, how high the actual rents would be, and how binding these commitments are in terms of timeframe.
This is a sensitive issue for the Lugano housing market, because a blanket price reduction below the market average does not in itself answer the question of genuine affordability. Unless the city translates its own terms into specific rent figures and income thresholds, it remains unclear – even in the case of politically sensitive large-scale projects – how much affordable housing will actually be created in the end.
