The political conflict escalated at the end of September 2026. The Federal Council intends to reject the rent control initiative, whilst at the same time drawing up an indirect counter-proposal. For the Tenants’ Association, this is not a safeguard against exploitative rents, but rather a further factor driving up the burden on tenants.
The association bases its warning on a trend that is difficult to dismiss in the light of the official interest rate data. The reference mortgage interest rate has remained unchanged at 1.25 per cent since 2 September 2025 and remained at this level as at 2 September 2026. Nevertheless, according to the association’s report, the Federal Statistical Office’s rent index rose by 32.1 per cent between 2005 and 2025.
Burden affects a broad cross-section of tenants
Switzerland remains a country of tenants. According to OECD data, a particularly high proportion of households here continue to live in rented accommodation by international standards. At the same time, excessive housing costs are seen as an acute problem, particularly for those on low incomes. The association points out that households with a gross income of up to 4,000 Swiss francs spend an average of 37.8 per cent on housing. The OECD also shows that in Switzerland, around two in five low-income tenant households spend more than 40 per cent of their disposable income on rent.
Ownership is shifting towards investment firms
The shift in ownership is particularly significant for the sector. According to a report by the Tenants’ Association, the proportion of rented flats owned by private individuals fell from 57.3 per cent to 43.2 per cent between 2000 and 2024. At the same time, the proportion owned by investment firms rose from 28.7 to 44.4 per cent. The association is using these figures to call for more social housing, a more consistent cost-based rent system and a stricter application of the Lex Koller.
Housing market becomes a test case for regulation
For owners, investors and politicians, this has long been about more than just social policy. The Federal Government has explicitly put protection against excessive rents back on the agenda for the end of September 2026. This brings into sharper focus the question of how returns, regulation and pricing will be balanced in the Swiss rental housing market in future. It remains to be seen how far the Federal Council’s indirect counter-proposal will actually go and whether it will dampen price dynamics or further fuel the dispute.
