Aargau is looking for housing beyond the major investors
In Aargau, an unusual measure to tackle the housing shortage is being rolled out. Local authorities are to actively encourage smaller developers to get involved in projects, as the market is becoming tighter despite brisk construction activity, and the vacancy rate had already fallen to 1.05 per cent by June 2026.
The pressure is measurable. As at 1 June 2026, there were still 3,685 flats and detached houses standing empty in the canton of Aargau. With a total of 352,556 residential units, this equates to a vacancy rate of 1.05 per cent. Six of the eleven districts recorded lower figures than the previous year; in the district of Muri, the figure fell to 0.56 per cent.
Against this backdrop, a theory put forward by Joëlle Zimmerli from the planning and development consultancy Zimraum during the presentation of the Aargau housing market report is gaining traction. Increased housing construction should not be left solely to large institutional investors. Local authorities could also actively involve small investors, building groups or co-operatives in projects if they manage building land, procedures and partnerships differently.
Small owners, big hurdles
Zimmerli pointed out that the rental housing stock in Aargau continues to be dominated by private individuals and institutional owners, whilst co-operatives and the public sector play only a minor role. However, smaller developers in particular often fail at an early stage in the market. High land prices, limited experience in planning and implementation, lengthy objection procedures and a lack of risk diversification make projects significantly more vulnerable for them.
This is precisely where the local authority’s influence comes into play. Following this logic, local authorities can secure smaller and more easily developable plots of land, allocate their own plots under building rights or for sale specifically to smaller developers, and embed the diversity of investors in strategies and master plans. In its own planning guide, the Canton of Aargau also explicitly refers to tools relating to the value-added levy and compulsory development, as well as to the importance of active building zone management.
Politics demands more than analysis
Political pressure is mounting in parallel. Matthias Betsche, GLP member of the Grand Council and president of the new Casafair Aargau branch, is calling on the government to provide a broader overview of how sufficient and affordable housing can be secured in the face of continued population growth. The focus is on the actual housing cost burden on different households, regional bottlenecks, access to home ownership for those on middle and lower incomes, and the impact of housing policy instruments already in use by local authorities.
The cantonal outlook also shows that the pressure to act is not abating. The Aargau Planning Guide is based on forecasts suggesting that, by 2040, the canton’s population could grow by almost 200,000 compared with 2012. If building land remains scarce and procedures take a long time, the question of more actively directed municipal intervention in housing construction is therefore likely to become even more pressing.