Skyscrapers like those in Manhattan are inconceivable for Switzerland
In the midst of growing demographic challenges, the latest study from Lucerne University of Applied Sciences and Arts sheds light on the realities of the Swiss rental housing market. Dani Steffen, a renowned expert and lecturer, offers insights into the complexity of the current housing situation and the resulting consequences.
Switzerland is experiencing a remarkable dynamic in its housing market. According to a comprehensive analysis by Dani Steffen and his team at Lucerne University of Applied Sciences and Arts, specific regions such as Zurich, Geneva and central tourist areas are experiencing a striking housing shortage. This contrasts with more relaxed markets such as the Jura or Ticino, where there is an oversupply of rental flats. These regional disparities are illustrated by a nationwide vacancy rate of 1.15 per cent, which shows a worrying decline since 2020.
Steffen emphasises that the lack of housing is not just a local phenomenon, but a nationwide one, despite regional differences. With the constantly growing population and the trend towards single households, the demand for living space remains constantly high, while residential construction activity is stagnating. This discrepancy between supply and demand is exacerbated by a combination of regulatory hurdles, geographical restrictions and economic factors such as inflation and interest rate rises.
The study also highlights the rental burden, which on average accounts for around 20 per cent of the household budget, with lower income groups being significantly more burdened. Steffen points out that despite high rents in cities such as Zurich and Geneva, rental costs remain relatively stable in relation to income. This indicates a certain regional balance, although accessibility for lower income groups remains a challenge.
In the future, the need for age-appropriate housing will increase in order to cater for the ageing population. Steffen emphasises the need to motivate older people to downsize their homes in order to create more space for families and relieve pressure on the housing market. However, this process requires sensitive approaches, as housing is a very emotional issue.
Overall, the study shows that Switzerland is facing significant challenges in the area of housing construction, which require careful consideration of both the regional characteristics and the different needs of the population groups.