Switzerland’s housing market in mid-2025 is marked by **chronic tightness and rising prices**. **Home ownership remains rare** by European standards: about **42.6% of Swiss residents own their homes**, meaning nearly **57.4% rent**. In urban centers, the share of renters is even higher. **Median prices** are among the highest in Europe. The **median price to buy an apartment countrywide is about CHF 9,224 per square meter (roughly €9,450 per sqm)**, with Zurich exceeding CHF 18,900 per sqm (about €19,350). To **rent**, the Swiss average is approximately CHF 1,400 per month for a standard apartment, translating to about **CHF 21.5 per sqm** (roughly €22 per sqm). In top markets like Zurich or Zug, rents can be significantly higher. Vacancy rates have hit historic lows, currently at **1.08% nationally**—the lowest in Europe—driven by strong demand, slow construction, and high immigration. **Publicly owned and social housing play a limited, local role**. Switzerland lacks a unified national policy for public or social housing. Instead, the responsibility is left to **municipalities and housing cooperatives**, especially in cities like Zurich. Public housing is **not the same as social housing in Switzerland**: “public housing” often means apartments owned or managed by non-profit cooperatives or public bodies, while “social housing” in other countries typically refers to means-tested, government-subsidized dwellings. In Switzerland’s cities, cooperatives play a crucial and growing role in providing affordable, non-profit housing, but their overall market share remains modest, estimated at 5-10% in most urban areas. In summary, Switzerland remains a nation of renters with **high costs and limited publicly owned housing**, and most policy responses are highly localized.

Switzerland’s housing crisis in 2025 is defined by severe scarcity, surging prices, and growing pressure in both rental and ownership markets. The national vacancy rate has plunged to 1.08%, reaching a historical low, with urban centers like Zurich and Geneva experiencing even tighter conditions. In June 2024, only about 52,000 apartments were vacant across the country. Construction of new homes remains well below the volume needed to keep up with demand, caused in part by lengthy and complex permit processes and cautious lending practices. Renters, who make up the majority of the Swiss population, face rising costs: average rents increased by 1.8% in early 2025, with especially strong growth in low-tax cantons and the largest cities. Asking rents rose 4.7% nationally in 2024, the fastest in 25 years, and the average continues to climb in 2025, albeit at a slower rate. Home prices have also increased, with owner-occupied housing appreciating by 2.7% over the past year. The crisis primarily impacts urban renters, young adults, families with modest incomes, and newcomers—including migrants—who are challenged by both affordability and availability. Incomes have not kept pace with housing costs, intensifying exclusion, particularly for lower-income groups. The shortage also indirectly affects businesses, which report difficulties attracting employees due to the cost and unavailability of suitable housing. Auf Deutsch: Die angespannte Wohnungsmarktsituation betrifft vor allem Mieterinnen und Mieter in Städten und einkommensschwächere Haushalte. Die Leerstandsquote ist auf ein historisches Tief gesunken, während die Mieten weiter steigen und Neubauten zu langsam vorankommen.

Switzerland’s national government currently addresses affordable and sustainable housing mainly by adapting regulations and supporting local initiatives, as there is no unified national policy for public or social housing. In March 2025, the Swiss Federal Council announced new measures to tighten rules for foreign real estate investment, aiming to relieve pressure on the domestic market and promote sustainable land use. The government is also streamlining building regulations to speed up construction, increasing funding for affordable housing, and offering tax incentives and subsidies to municipalities that prioritize affordable housing on available land. Concrete programs include direct financial support for developers focused on affordable units, aiming for at least 20% of new developments to meet affordability targets. There is also official support for housing cooperatives and cohousing models—these initiatives enable residents to co-manage housing and maintain lower rents. Non-profit housing organizations receive easier access to financing, incentivizing long-term affordability. The government’s broader targets, while not enshrined in law, are focused on expediting construction and ensuring a greater share of new builds are priced affordably and developed sustainably. Auf Deutsch: Die Bundesregierung vereinfacht derzeit Bauvorschriften, erhöht die Finanzierung für bezahlbaren Wohnraum, und fördert Genossenschaften sowie gemeinschaftliche Wohnprojekte. Strengere Regeln für ausländische Investoren und steuerliche Anreize für Gemeinden, die Land für erschwinglichen Wohnraum bereitstellen, sind zentrale Maßnahmen. Das Ziel ist, mindestens 20% der Neubauten bezahlbar zu gestalten und nachhaltige Wohnmodelle zu fördern.

Housing cooperatives in Switzerland play a critical, though relatively modest, role in providing affordable and non-speculative housing, especially in urban centers. As of 2025, cooperative-owned dwellings make up around 4–5% of all Swiss housing units, with the share of all non-profit housing (including cooperatives and other non-profits) estimated at about 4% of total housing stock—despite increasing demand and longer waiting lists. In cities like Zurich, the share is much higher, reaching about 25–27% of the housing stock due to targeted local policies, while in other major cities such as Basel, Bern, and Lucerne, the share is above 8%. The vast majority of cooperative housing is concentrated in a handful of cantons, with rural areas seeing minimal presence. Cooperative housing is valued for its cost-based rents, democratic governance, and accessibility, often resulting in rents 20–30% below market rate. Current dynamics show a growing need for affordable housing, with cooperatives unable to keep pace with demand despite an increase in their numbers. The national government does not have a unified policy but supports cooperative housing through regulatory simplification, financial incentives, and subsidies for municipalities and developers who prioritize affordability. Key initiatives include streamlining building regulations, increasing funding, and offering tax breaks for affordable housing projects. There is also a broader push for 20% of new developments to be affordably priced, alongside easier financing access for non-profit organizations. While cooperatives are recognized as a valuable tool for social and economic sustainability, their expansion remains limited by land availability and market competition.

In Switzerland, several individuals and organizations have actively advocated for addressing the housing crisis and promoting affordable, sustainable housing, especially in major cities. Housing cooperatives, such as the Gockhausen Cooperative in Zurich and the umbrella initiative “Mehr als Wohnen,” play a leading role by providing lower-rent, community-managed units and setting successful models for mixed-use, affordable developments. Foundations like the PWG Foundation in Zurich also contribute by acquiring property and maintaining rents below market levels, with a focus on social outcomes rather than profits. From the real estate sector, experts such as Donato Scognamiglio, chairman of the real estate consultancy Iazi, have argued for streamlining building permits, increasing densification, and promoting the rezoning of land for affordable housing. The “Nine Foundation” is another key player, having created thousands of affordable rental units across Swiss cities. Potential collaboration partners include: - Academia: Institutes like the Swiss Federal Housing Office (BFH) and universities working on urban and housing research. - Real Estate: Companies such as PriceHubble AG, Urbio SA, and properti (recognized as a leading PropTech startup). - Startups: Real estate technology startups and innovation platforms that focus on efficient construction and smart housing solutions. - NGOs: Housing cooperatives, the PWG Foundation, and non-profit developers working in partnership with municipalities. Effective solutions will require collaboration among local governments, real estate experts, non-profits, startups, and academic researchers to expand affordable and sustainable housing across Switzerland.