Why Are Swiss Rental Prices Skyrocketing?

A recent study by a company called Iazi has shown that in Switzerland, the cost of renting houses and apartments has gone up by 30% in the last 20 years. This increase in rental prices is causing problems in the Swiss housing market, especially after the recent increase in the reference interest rate. It’s also a problem because people’s salaries have not gone up enough to keep up with the higher housing costs.

The study also tells us that the prices for buying or renting homes in Switzerland have gone up a lot since the year 2000. Between 2000 and 2021, the cost of buying an apartment went up by 94% on average, and house prices went up by 80%. Renting a place also became 30% more expensive during this time. This is making it harder for people to afford a place to live, and it’s one of the main reasons why the cost of living in Switzerland is going up.

The study found that the cost of housing can be very different in different parts of Switzerland. In some areas, homes of the same size can be up to 70% more expensive than in other areas. The study didn’t look at how the recent increase in the reference interest rate has affected rental costs for many people or the fact that there have not been enough homes available since 2021.

One of the main reasons why housing costs are going up is because more people in Switzerland are getting wealthier, and this makes them want bigger and nicer homes. Over the last 20 years, the amount of living space each person has in Switzerland increased from 44 to 46 square meters.

Another reason for the high housing costs is the way taxes work in different areas, and how much money people make. In places with low taxes, homes tend to be more expensive because they attract people with higher incomes who can spend more money on housing. This increases the demand for homes and causes landlords to raise the rent for houses and apartments in those areas.

Also, the study mentioned that the demand for homes is going up because more people are moving to Switzerland, especially in places like Canton Zurich, Vaud, and Geneva, which are popular with people from other countries. This high demand for homes is also pushing up the prices.