A new report from housing platform Homegate and the Zürcher Kantonalbank (ZKB) has suggested that the cost of renting a house or apartment in Switzerland has continued to rise significantly over the last 12 months. The Swiss bank noted that among cities and cantons, no area of the country has seen rental costs fall in the last year.

Rental costs in Switzerland continue to soar

According to the data, the average cost of renting in Switzerland has risen by 5,9 percent between the end of May 2023 and the beginning of June 2024. These increases have continued in recent weeks, with average costs rising by 0,4 percent in the last month alone.

In the last month, the biggest rental cost rises were reported in Schwyz and Glarus, where prices quoted in rental contracts increased by 1 percent. Cantons Lucerne, Zug (0,9 percent), Uri and Geneva (0,7 percent) have also seen prices rise in the last month. Among cities, Lucerne recorded the biggest rise, increasing by 2,5 percent compared to April 2024.

By contrast, Graubünden has seen rental costs fall by 2,1 percent on average this month - however, when compared to June of last year, prices are still 8,2 percent higher. When it came to urban areas, only Lugano (-0,8 percent) reported a fall in rental costs in May, though they are still 3 percent higher than they were a year ago.

Schaffhausen sees fastest increase in rental prices

Looking at the annual figures, the biggest rent increases can be found in Canton Schaffhausen, with prices rising by 10,8 percent. They were followed by Canton Zurich (8,7 percent), Zug (8,9) and Graubünden (8,2), while Lucerne is the city that has experienced the fastest rental increases of the last 12 months at 8,8 percent.

While the report did not go into why the cost of renting is rising so significantly, most experts have blamed the phenomenon on a lack of housing. Indeed, housing expert Stefan Fahrländer predicted back in May that Switzerland will have to build 522.323 apartments by 2040 if it is to keep up with demand.