Liechtenstein

Liechtenstein’s housing market is characterized by rising prices and high demand, with a marked preference for **home ownership**. However, the country is increasingly described as a nation of renters and condominium owners. About **54% of households are owner-occupied**, while roughly **46% are rented**, reflecting a balanced but ownership-leaning environment. Apartment purchase prices are notably high, with the **median price per square meter now around 47,000 euros**. Regarding rental prices, recent data show **median rents for apartments at approximately 18–19 euros per square meter per month**. These high prices are driven by limited land, a rising population, and strong investor interest. Publicly owned or subsidized housing is present but comprises a **small share of the total market**. The state offers housing subsidies for eligible residents—mainly for lower-income households—and regulates non-profit housing cooperatives, aiming to foster more affordability and sustainability. However, **public housing is not equivalent to social housing in Liechtenstein**: public housing focuses more on state-subsidized home ownership and temporary rent assistance, while social housing elsewhere often refers to municipally owned rental units for low-income residents. The housing policy landscape is evolving, but the majority of housing remains privately owned or rented, with public and non-profit actors holding a minor but important role in ensuring affordability. All prices reflect current euro conversion rates.

Liechtenstein is facing a notable housing crisis marked by rapidly rising prices and constrained availability. Over the past decade, the price of residential properties has surged: inflation-adjusted house prices have jumped by more than 130%, one of the highest rates in Europe. The current average price per square meter for property is over 47,000 euros, reflecting sustained high demand and limited land for new developments. Rental prices have also escalated sharply, with monthly apartment rents typically ranging between 18 and 19 euros per square meter, and central locations often exceeding this benchmark. The country’s small size and economic strength draw both local and international buyers and investors, further intensifying competition for limited housing stock. Despite a well-performing economy and low unemployment, homeownership has become less accessible, particularly impacting younger people, lower-income households, and newcomers who struggle to secure affordable options. Renters—nearly half of all households—face rising costs and tight rental markets. Publicly subsidized or non-profit housing plays only a minor role, and the market remains dominated by private ownership and investment-driven activity. The disproportionate impact falls on those without established financial means, including young families, single-income earners, and foreign workers, for whom both buying and renting have grown steadily less affordable. Homelessness remains rare, but the risk of housing exclusion is growing for vulnerable groups.

The Liechtenstein national government addresses affordable and sustainable housing through targeted subsidies, eligibility regulation, and integration of sustainability in its policy frameworks. Financial support is mainly provided via housing subsidies for first-time buyers, with strict eligibility based on income, residency, and property size. Only residents with an income below around 100,000 Swiss francs (about 104,000 euros) per year qualify, and applicants must not already own family-sized property. Subsidies are designed to support both home ownership and permanent residence, not speculative investment or temporary holds. The maximum eligible property size is capped to focus support on typical family units. A notable program is the Community Land Trust (CLT) Affordable Housing Program, in which buyers own their homes but lease the land for 99 years, making the properties more affordable for eligible, usually first-time, buyers. This program emphasizes sustainable ownership and requires participants to meet detailed income and credit criteria. Since 2024, Liechtenstein applies borrower-based macroprudential measures for new mortgages, including amortization and maturity restrictions based on loan-to-value ratios and income-based affordability tests. These are intended to enhance market sustainability and prevent excessive household debt. The government’s 2021–2025 program also prioritizes the Sustainable Development Goals, with broader measures to increase the quality and attractiveness of living spaces and support social and environmental sustainability within the housing sector. However, publicly owned or subsidized housing continues to play a relatively minor role in the overall market.

Housing cooperatives in Liechtenstein play a **minor role** in the national housing market. The leading cooperative, Wohnbaugenossenschaft Liechtenstein, currently manages just 31 dwellings—less than 0.2% of the country’s approximately 21,500 housing units. Cooperative flats are popular for their affordability (about 20% below market rents), but demand is limited and there are no plans for expansion, especially given the current surplus of available housing. Cooperative housing models in Liechtenstein require members to purchase shares (typically CHF 30,000–50,000), with eligibility and flat size based on household composition. While the quality is comparable to new-builds, the small scale makes cooperatives a negligible provider compared to private and rental sectors. National policy focuses on supporting affordable housing mainly via **state housing subsidies** and programs like the Community Land Trust, rather than expanding cooperative stock. These measures are designed to support permanent residency and first-time buyers, subject to strict eligibility linked to income and property size, and are not exclusive to cooperative initiatives. There is **no specific national program or regulation aimed at significantly expanding the cooperative housing sector**; policy favors targeted financial support over market intervention. As a result, the share and influence of housing cooperatives remain minimal, and no dynamic growth is expected in the near future.

Several individuals and organizations in Liechtenstein have engaged with the housing crisis, particularly in the areas of affordability and sustainability. While formal initiatives primarily stem from government policy and regulatory action, the NGO sector also plays an important role. Housing-focused NGOs and charities in Liechtenstein, as listed in national directories, have voiced the need for more affordable and sustainable housing and may serve as key advocates or partners. Notable examples include organizations dedicated specifically to housing access and social justice, as well as broader charities that address housing within their social welfare efforts. Strong candidates for collaboration include: From academia: local institutions and researchers focused on urban development, sustainability, and social policy would bring valuable expertise. From the real estate sector: property developers and associations who have a track record in sustainable construction or are responsive to public concerns around affordability. From the startup world: emerging enterprises in the construction technology or green building sectors, especially those developing innovative or modular housing models, are compelling partners. From the NGO sector: local housing NGOs, social welfare organizations, and international philanthropic groups with active affordable housing projects—such as the Hilti Foundation, which has a presence in the affordable housing and technology space—offer experience and potential for impactful collaboration. Pooling efforts from these groups would help extend the reach and effectiveness of affordable and sustainable housing initiatives in Liechtenstein’s cities.