Living in Ticino requires foresight

The housing problem in Ticino is not just about rents or the number of vacant apartments. It is about quality, accessibility, social cohesion, spatial development and the demographic future. Monique Bosco-von Allmen calls for the topic of housing to be considered in a broader and more political context.

You are President of CASSI, the Swiss Housing Cooperatives, the regional association for Italian-speaking Switzerland. What exactly does this association do?
In a nutshell, the aim of the regional association is to promote non-profit housing construction in Italian-speaking Switzerland, support members in their concerns, offer services and represent their interests in politics and in public. CASSI also promotes solidarity, cooperation and the exchange of information among its members. As the reality of housing cooperatives is still little known in Ticino, it also carries out educational work and organizes events on topics relating to society, spatial development, housing and therefore relationships between people at a time when the population is ageing rapidly and pensions appear to be under pressure.

How would you describe the current housing situation in Ticino?
I think there is still some confusion regarding the data on the housing situation in Ticino. The published figures are incomplete. For years it has been claimed that there is no vacancy problem here like elsewhere in Switzerland, but it is almost never mentioned that the standard of vacant apartments may not meet the needs of families because the location is unfavorable and the costs are too high in relation to income. In addition, subjective allowances are counted as income, which distorts the actual figures on the need for housing at moderate costs. Too little is said about the severe shortage of social housing, which accounts for less than one percent of the total stock, as well as the outdated property stock and unrenovated rental houses, which may provide affordable housing today but will soon require extensive renovation work, which will lead to an increase in rents. Too little is said about the under-occupancy of apartments by older people, the lack of solutions for a rapidly ageing population and the phenomenon of Ticino residents moving to neighboring Italy to live while continuing to work here – also due to the excessively high cost of housing.

Why are cooperatives much less common in Ticino than in German-speaking Switzerland?
I have never carried out a scientific study on this topic, but I believe that there are various factors that have slowed down the growth of housing cooperatives in Ticino. The reason is not limited to the fact that they are “not part of our culture”, as I often hear. Until a few decades ago, many people in Ticino were so poor that sharing tools and premises was widespread. Ticino is not a canton where industry has developed, and therefore there was not the housing shortage of the working class that encouraged the emergence of cooperatives elsewhere. Apart from the historical cooperatives of federal personnel, there are almost none in Ticino. Perhaps the wealth created by the banking industry has also favored single-family homes scattered across the area, with enormous infrastructure costs and an increase in individualism. Moreover, politicians are not addressing the issue of non-profit housing and are therefore not promoting it, perhaps because they have not yet recognized the benefits it brings to society as a whole.

What is the specific difference between a cooperative project and a traditional real estate project, including in terms of financing and long-term goals?
Traditional real estate projects are generally profit-oriented, whereas cooperatives are by definition not. Cooperatives should not be confused with public social housing, as they represent a third form of housing between ownership and renting. They try to satisfy the housing needs of their members in the long term and therefore often invest in quality. On average, they offer apartments at around 20 percent lower costs as they do not make a profit; rents are calculated on the basis of actual costs and not on the increase in the value of the property. Cooperatives recognized as non-profit by the BWO are also eligible for low-cost loans through the Rotation Fund and a Solidarity Fund, which reduces the initial equity requirement. Even if this only happens to a limited extent, non-profit housing projects thus help to calm the market.

Has the canton of Ticino politically underestimated the issue of housing in the last ten years?
In my opinion, much more should and could be done. It seems to me that not only is there no real housing policy, but also no real exchange of ideas on the subject. It also seems to me that the instruments for promoting it are not well enough known. This gave rise to the idea of setting up the “Housing Policy in Ticino” working group, which is open to all interested parties in order to raise awareness of the importance of the issue and the ways in which it can be tackled. One of the reasons why politicians have not addressed the issue is the lack of pressure from below. The population does not demand this sufficiently. This is also due to the fact that many families in need receive subjective, personalized aid that covers immediate needs but does not take future difficulties into account. On the other hand, there is a lack of objective, concrete aid that promotes housing projects that remain non-profit-making in the long term and have a positive impact on social cohesion, mutual aid and collective well-being.

Who is most affected today: young adults, families, older people or the middle class?
Society. Housing is not just a question of having a roof over your head. It’s about relationships between people, exchange, interaction, a sense of belonging, a sense of identity, but also about economic development. Society is ageing very quickly, does not offer sufficient working conditions to cope with the many rising expenses, including housing and health, and the number of families in need is increasing significantly. I have the impression that the middle class is also struggling and it is very important to support it, because I believe that it is the foundation of our democratic system. If families spent less on housing, they could spend more on other needs and thus contribute more to the economy and to a better distribution of wealth.

Where do you think the main problem lies: in spatial planning, building permits, objections or a lack of political will?
All these aspects are important. Without political will, there can be no planning. The increasing bureaucracy is worrying. On the other hand, the lack of protection of the territory and historical heritage, which gives us a sense of identity, is also very worrying. Participatory processes are lacking, while disinformation and ignorance of appropriate instruments are conspicuous. There is also a lack of data and analysis that would make it possible to develop a vision. I think that Ticino does not yet have a vision, at least not a shared one.

Can private investors be part of the solution or do they structurally exacerbate the problem?
I think that private investors are a very important part of the solution to the lack of affordable housing in Ticino. It is important that the framework conditions allow the development of PPP projects that offer solutions to the real needs of the current and future population. It should be remembered that cooperatives also develop projects with equity and should not be confused with public investors. Among the institutional investors that have contributed to the rise in real estate values are pension funds, which rightly need to make profits to pay pensions. However, if these profits drive up housing costs more than pension increases, we will end up with an even more serious problem. I also wonder how the public sector invests to maintain its real estate stock, not only in terms of quality but also quantity. It seems to me that people in Ticino have not yet understood how important it is for the public sector to have real estate that can perhaps be leased out.

Many people claim that affordable housing construction is almost economically impossible. Is this true, or is there simply a lack of clear framework conditions and incentives?
I would like to know why it is claimed that affordable housing construction is economically almost impossible. Appropriate framework conditions and perhaps incentives are certainly important, but the decisive factor remains land value, which has too great an impact on project costs and therefore on rents. If we don’t discuss who owns the land again and if we don’t weigh up the actual social and ecological costs of housing, I think the discussion will remain unbalanced. It’s not just about affordable housing, but about appropriate, accessible and high-quality housing solutions that bring well-being to people while respecting nature and the territory. Projects should be developed that use less land per capita and have a lower environmental impact, but have a greater social impact, including through shared spaces and services.

What instruments do the municipalities and the canton already have at their disposal to make affordable housing available more quickly, and why are they underused?
It’s not just about instruments, but also about clarifying the role of the public sector and the importance of a housing strategy. The BWO has published a new edition of the brochure “Affordable Housing. A modular toolkit for cities and municipalities”, which is a very valuable instrument for anyone who wants to promote a housing policy that is geared towards the actual needs of the population. The examples show in concrete terms how to proceed. This toolkit is also very useful for the municipalities in Ticino. The “Housing policy in Ticino” working group will organize local events to present the instruments currently available to politicians, civil servants, experts and the population. Municipalities can promote affordable housing through numerous instruments that fall into three categories: “orient”, “finance” and “communicate”. The kit presents 10 modules, including right of first refusal, building rights, the creation of sponsors, municipal housing, loans and advice.

Ticino is ageing rapidly. Is the real estate market prepared for this demographic development?
In my opinion, absolutely not. There is not even any educational work on this topic. There is no talk of possible alternatives that could arouse the curiosity of future older people, of whom there are very many. No consideration is given to housing alternatives at affordable costs and with less social isolation, which also entails an increase in health costs due to loneliness and depression. The issue of the many single elderly people living in large, old apartments and thus denying young families access is also not being addressed. There is a lack of awareness that a bed in a retirement home costs CHF 8,000 or more per person and that this model, if it applies to many, is not economically viable in a society where more than a third of the population will be elderly in a few years’ time. We need to think about alternative solutions that are financially viable and enable more exchange and mutual help between the generations. However, this requires the will.

In your opinion, what needs to change in Ticino so that it is no longer perceived as a market for second homes and vacation apartments, but as an independent economic area?
There needs to be a shared vision of what it wants to become. Without such a vision, it is unclear where and how to deploy its strengths. In my opinion, Ticino has a lot of potential, but it must not forget that it is located between Milan and Zurich. It should not try to compete, but rather strengthen the many positive aspects it has. There should be a broad debate about the future of Ticino, but unfortunately I am not aware of it. Architects could contribute to a broad exchange of ideas between different disciplines, not just between business and the real estate industry.

Does Ticino have a housing problem or a problem with political courage?
Both, but not only that. I think there is also a problem of identity and awareness. We need transparent data on which to base a debate that is characterized by constructive discussions that are not limited to interviews. Thank you for this opportunity.

Editorial team: immoMedia • Image: Courtesy of the publisher.