The number of available houses and apartments to rent in Switzerland has reached a record low, new data from the Federal Statistical Office (FSO) has revealed. In over 200 Swiss cities and towns, analysts found no homes to rent at all.

Vacancy rate in Switzerland falls to record low

According to the data, on June 1, 2024 there were 51.974 houses and apartments available to rent or buy in Switzerland, a drop of 5,1 percent (2.791 homes) compared to the same period last year. With only 1,08 percent of homes available, it amounts to the lowest vacancy rate ever recorded, and the fourth year in a row that rates have fallen. 

Half of the 26 Swiss cantons reported vacancy rates below 1 percent - the threshold for when authorities consider there to be a “housing shortage”. The biggest shortages were reported in Zug, where only 0,39 percent of the housing supply is available, Obwalden (0,44 percent), Geneva (0,46 percent) and Zurich (0,56 percent).

Over 200 Swiss towns had no homes to rent

In fact, the FSO data revealed that over 200 municipalities in Switzerland had no homes to rent or buy on June 1. These include Presinges and Laconnex in Geneva, Loney and Vaux-sur-Morges in Vaud, Schlatt in Zurich and various communities in Aargau and the mountains of Graubünden.

By contrast, Jura (2,98 percent), Solothurn (2,37 percent ) and Neuchâtel (1,68 percent) were the least affected by housing shortages. The towns with the most plentiful available homes were towns in Jura, namely the soon-to-be-part of the canton town of Moutier (6,73 percent), Valbirse (7,99 percent) and Romont (7,38 percent) among others.

The shortage has been affecting renters more than those looking to buy a home in Switzerland. Over the last year, the number of available rental properties fell by 8,6 percent, while the number of homes for sale increased by 9,5 percent. As a result of the shortages, a recent study found that rental costs have risen at their fastest rate in 30 years.

Shortage of housing in Switzerland will worsen, predicts ZKB

"The figures confirm our assessment that the shortage will continue to worsen," real estate expert at the Zürcher Kantonalbank Ursina Kubli told Blick. She explained that the main issue lies in a slowdown in the number of homes being constructed, caused in part by an inefficient and strict planning system. According to data from fellow Swiss bank Raiffeisen, around a third of planning permissions for new housing were rejected in the first quarter of 2024. 

Speaking to Blick, Raiffeisen expert Fredy Hasenmaile said that "as many obstacles to construction as possible must be eliminated," and that more housing should be built in the areas with the highest demand.

"In the long term, we need to regulate immigration," Hasenmaile said. Amid the fastest population growth seen since the 1960s, new arrivals have regularly been blamed for provoking housing shortages. Meanwhile, lower migration figures are predicted to have adverse effects on Swiss social security, pensions and demography, and attempts to curb migration to Switzerland are likely impossible without jeopardising the country's relationship with the European Union. 

Along with the government's ongoing plan to try and solve the housing shortage, the Swiss parliament has recently induced new measures designed to expand housing. The most recent proposal, submitted on September 10, includes relaxing the restrictions on building homes near motorways, airports and rail lines, so long as one room in the home respects current noise pollution rules. However, Hasenmaile argued that the idea would not be enough to rectify the shortages.