Rising Rental Costs in Switzerland

A recent report from Homegate, a housing platform, and the Zürcher Kantonalbank (ZKB) reveals that renting a house or apartment in Switzerland has become much more expensive in the past year. The report shows that in the last 12 months, rental prices have increased significantly across the country, with no area experiencing a decrease in costs.

Continuous Increase in Rental Prices

Between the end of May 2023 and the beginning of June 2024, the average rental price in Switzerland rose by 5.9%. This upward trend has continued in recent weeks, with an additional 0.4% increase in the last month alone. In particular, Schwyz and Glarus saw the highest increases, with rental contract prices rising by 1%. Other regions such as Lucerne, Zug, Uri, and Geneva also experienced price hikes in the last month. Lucerne recorded the highest increase among cities, rising by 2.5% compared to April 2024.

However, Graubünden saw a decrease in rental costs by 2.1% this month. Nonetheless, compared to June of the previous year, prices are still 8.2% higher. In urban areas, only Lugano reported a decrease in rental costs in May, although they are still 3% higher than a year ago.

Schaffhausen Leads in Rent Increases

Looking at the yearly data, Canton Schaffhausen experienced the largest rent increase at 10.8%, followed by Canton Zurich (8.7%), Zug (8.9%), and Graubünden (8.2%). Lucerne had the fastest rental price increase among cities over the last 12 months at 8.8%.

Experts attribute this significant rise in rental costs to a shortage of housing. Housing expert Stefan Fahrländer predicted in May that Switzerland will need to build 522,323 new apartments by 2040 to meet demand.