Switzerland’s housing crisis is particularly acute in Zurich, the country’s biggest city, where booming demand collides with lack of availability. Whenever an affordable rental apartment comes on the market, hundreds jostle to view it. Pictures of would-be tenants waiting in long queues do the rounds on social media. A disheartening state of affairs. Such scenes have become symptomatic of an increasingly urgent problem in Switzerland. Zurich, home to major job providers in the banking, insurance, tech and service industries, has a record-low vacancy rate, with only one out of every 1,000 apartments available, mostly high-end. The national figure is one out of every 100 apartments – a clear indication of an overheating market. This shortfall not only makes finding a place harder but also pushes prices up. Regional differences, social impact The housing shortage mainly affects cities like Zurich, Geneva and Basel – conveniently located urban centres that are particularly popular among EU migrants. Yet pressure is also felt in smaller cities and in popular resorts in the mountains, according to a government report. In some Alpine regions, locals and non-local workers are now struggling to find housing – partly because of the proliferation of second homes and short-term Airbnb rentals. The cost of renting has been rising for over 20 years. New leases are especially prone to price jumps – of two to six per cent a year since 2022, depending on the region. If you are renting for the first time or moving, you The flip side of growth and immigration is clearly evident on the Swiss housing market, where living space is becoming scarce and rents are going up. There is no consensus on how to solve the problem. can expect to pay significantly more compared to long-term renters who stay put. A country in which nearly 60 per cent of households live in rented accommodation is sensitive to such market forces. This has real-life consequences. A 2025 ETH Zurich study shows that low-income households in the five biggest urban areas are being priced out. But middle-income households are also being hit by housing costs eating up an increasing portion of their monthly budgets. Immigration, regulation, speculation It is no surprise that housing is a matter of heated debate ahead of the vote on the SVP’s “No to a Switzerland of 10 million” initiative. Protagonists put forward different explanations and solutions, depending on their political persuasion. The SVP cites “uncontrolled” immigration. It says that supply still falls short of demand despite more housing being built in the last 25 years, and that Switzerland is also losing its green spaces: “It is not that we are not building enough. The problem is too many immigrants.” Meanwhile, the Liberals (FDP) believe that regulation is acting as a drag. Planning requirements and objections are dePictured right: Cooperative housing project at the Koch site in Zurich – building about 360 affordable apartments for 900 people. The federal government wants to promote non-profit housing developments. Photo: Keystone “It is not that we are not building enough. The problem is too many immigrants.” SVP position Swiss Review / April 2026 / No. 2 9
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