A look abroad How other countries are coping with the housing shortage

While housing is in short supply in Switzerland and the shortage is set to increase in the coming years, countries such as France and Japan are coming up with strict solutions - but these come with disadvantages.

The housing shortage in Switzerland is worsening. The stock of available apartments is at an all-time low, as real estate consultancy Wüest Partner reports on "20 Minuten" - but not enough is being built.

In addition, the Swiss population continues to grow due to immigration, which will reach over 80,000 people this year. This corresponds to the size of a city like Lucerne.

Low point has not yet been reached

Last year, immigration was even higher at 140,000 people. According to Robert Weinert from Wüest Partner, however, this was due to a special effect: Ukrainian refugees who had been living in Switzerland for more than a year were now counted as part of the permanent resident population. Without this effect, population growth would have remained at the same level as this year.

However, the low point of vacant apartments has not yet been reached. How immigration and construction activity develop in the future will be decisive.

Swiss economy doing better than elsewhere

Switzerland is a victim of its own success, says Michel Benedetti from the real estate consultancy Iazi to "20 Minuten":"As the Swiss economy is doing better than elsewhere, many new jobs are being created, which also attracts immigrants."

Many foreign workers are employed in the construction and hospitality industries, sectors that have been affected by the coronavirus pandemic. The hotel and tourism industries in particular have been able to build on previous successes. There is also still a shortage of skilled workers in the IT sector.

In other countries, however, the housing shortage is less dramatic, and not just because of a weaker economy. "It's complicated in Switzerland. Construction projects can be delayed for years due to objections, which deters investors," explains Benedetti.

High-rise buildings meet with resistance

Abroad, the hurdles are lower and governments are more determined to push through construction projects in order to secure their re-election. "But I don't know whether it's better if new districts or neighborhoods spring up like mushrooms and there is no social mix," says Benedetti.

Japan could be a model for spatial planning. There is no strict separation between residential and work zones there. Residential construction is therefore also permitted in industrial zones and objections to residential construction projects are rare.

In the French metropolis of Paris, meanwhile, every opportunity is being taken to increase the height of buildings. The city is increasingly developing upwards, a concept that would also be conceivable for Swiss cities. In the densely built-up districts of Paris, many buildings exceed four storeys or more.

In Zurich, meanwhile, high-density construction methods or high-rise buildings in urban centers or agglomeration communities with few building reserves are often the only option. However, these still meet with considerable resistance, says Michel Benedetti.

Are municipalities to blame?

Many municipalities have failed to implement the Spatial Planning Act correctly. This law, which was introduced exactly ten years ago, stipulates that new apartments should mainly be built in already populated areas.

This means that buildings have to be denser and higher. Zurich property developer Balz Halter, who spoke to the Tages-Anzeiger newspaper, says that many municipalities have not yet adapted their building and zoning regulations accordingly, leading to a shortage of new buildings.

A recent survey conducted by the Federal Office for Spatial Development (ARE) in May indicates that there is something to this. The report shows that although all cantons have adapted their structure plans, the municipalities are now responsible - and this is where the problem lies.

According to the evaluation, less than half of the Swiss municipalities have updated their land use plans. Rural municipalities in particular are lagging far behind.

No affordable and central apartment without compromises

On the tenant side, patience is required in many places, says Wüest Partner expert Weinert. "Alternatively, you can extend your search radius, which is easier in many sectors than it was before 2020 thanks to working from home."

A very affordable apartment in a central location in Zurich is almost impossible to find without compromising on living comfort, says Iazi expert Benedetti. Shared apartments are one option for young people or singles: "Zurich deliberately promotes such forms of housing through foundations."

High demand for home ownership

Due to the tense situation on the rental housing market and falling mortgage interest rates, the demand for home ownership remains high.

In many regions, prices have recently risen more sharply again than at the end of 2023. In the second quarter of 2024, prices for condominiums rose by 3.5%, while single-family homes were 2.5% more expensive.

One thing is clear: According to a calculation by Wüest Partner last year, there will be a shortage of around 50,000 apartments across Switzerland in around three years' time.