laying building projects, they lament. The party wants to expedite procedures and relax noise restrictions. Profit-driven speculators have accelerated rental hikes, says the Swiss Social Democratic Party (SP), which is collecting signatures for an initiative to combat extortionate rents as well as calling for more non-profit housing schemes. However, a popular initiative aiming for a fixed proportion of affordable homes failed at the ballot box in 2020. A complex range of factors Studies and market analyses show that immigration exerts pressure on the housing market, but that other factors also need to be considered. According to federal data, immigration was a major driver of household growth between 2014 and 2023, fuelling demand. But average living space per capita also played a role, increasing from 45 to 46.6 square metres in the space of ten years. The introduction of free movement between Switzerland and the EU in 2002 pushed up the price of renting and home ownership until 2016, according to a 2023 study by the University of Fribourg. Its impact waned thereafter, because the market responded and new homes were built – albeit not enough. Experts note that the housing market is a complex system based on supply and demand as well as building law and economic parameters. From 2018, construction activity declined not least as a result of high costs and a shortage of building land. Addressing concerns over residential density Scarce building land is not only down to Switzerland’s topography. It is also enshrined in law. In 2013, voters approved the revised Spatial Planning Act, which limits construction on greenfield sites and encourages inward urban development. It would be possible to create living space for two million people without developing new land, says a 2025 study by the Sotomo research institute. Yet projects to increase residential density often face resistance at local level. People fear being squeezed out of their neighbourhoods, or a decline in their quality of life. Innovative concepts address these concerns, showing how it is possible to build higher and more densely while creating green spaces. One urban planning model is the “ten-minute neighbourhood”, where jobs and everything you need for daily life are in close proximity. Developed by ETH Zurich and funded by the Swiss National Science Foundation, the idea is designed to help cantons and municipalities implement the Spatial Planning Act. An annual 40,000 to 45,000 new homes have been created in Switzerland in recent years. According to estimates, 30 to 50 per cent more is needed to balance supply and demand. Although the number of building applications has increased slightly of late, the government realises that there is no quick fix. Together with cantons, municipalities and the property and construction sectors, it has drawn up an action plan consisting of 30 measures. These range from more efficient authorisation processes to better use of building land. But they are only recommendations for the time being. More tangible is a proposal that the Federal Council has put to parliament: a fund that issues loans to non-profit housing developers being bolstered to the tune of an extra 150 million francs between 2030 and 2034, in order to facilitate the construction of low-cost homes. The Swiss parliament will vote on the scheme this year. More affordable homes and an action plan to combat the housing crisis – this is how the government hopes to blunt the SVP’s “No to a Switzerland of 10 million” initiative. Will voters be on board? We will find out on 14 June. Building higher and more densely is one way to create living space without developing new land. Modern developments – like this one in Schlieren (canton of Zurich) – prioritise short distances and green spaces. Photo: Keystone 10 Swiss Review / April 2026 / No. 2
RkJQdWJsaXNoZXIy MjYwNzMx