A new report by the Zürcher Kantonalbank (ZKB) and Homegate has found that the cost of renting a house or apartment in Switzerland has reached a record high. The Swiss bank said that average rental prices across the country are now 2,6 percent higher than they were a year ago, with the biggest rises recorded in Swiss cities.

Rental costs in Switzerland reach an all-time high

According to the study, reported by 20 Minuten, rental costs across the country have risen by 2,6 percent on average between March 2022 and 2023. The corresponding real estate index has risen to 120,2 points, a new record for the ZKB study.

The skyrocketing prices between February and March follow a few months of relative stability in the Swiss housing market which saw the cost of buying a house decline while the price of renting rose gradually. Now, the study reported that prices have risen significantly in 18 of the 26 Swiss cantons.

Which Swiss canton has seen rental costs rise?

When it comes to annual rent rises, only one canton has seen rental costs fall between March 2022 and 2023: Zug, which registered a 2 percent fall in costs. All others have seen rental costs rise, with four (Glarus, Valais and both Appenzells) recording annual rises of more than 4 percent.

Despite this, with the exception of Nidwalden (1,3 percent) and Solothurn (1 percent), monthly price rises remained below one percent in March 2023. Some cantons have even seen prices fall compared to February 2023, with rental costs in Schwyz (-1,3 percent) and Graubünden (-1,2 percent) declining the most.

Zurich sees rents rise by 7,3 percent in the last year

When it comes to cities - perhaps unsurprisingly given the news that prospective tenants have been resorting to illegal overbidding to try and secure a house - Zurich has seen prices rise the most, with costs increasing by 7,3 percent in the last year and by more than 2 percent in the last month alone. Lugano placed second with 6,4 percent annual growth, although prices in the Ticinese city have fallen by 0,3 percent in the last month. 

Other cities like Geneva (1 percent), Bern (0,6 percent) Lucerne and St. Gallen (0,4 percent) also saw price inflation in March. Others, like Basel (-0,6 percent) and Lausanne (-0,4 percent) have seen prices drop since February.

For more information, check out the official study (in German).