Switzerland's housing crisis deepens as affordability plummets in cities and tourist hubs
Switzerland's housing market is facing severe pressure, according to the latest report from the Federal Housing Office. While existing tenants enjoy stable rents and lower financing costs, many households are struggling to find affordable homes—especially in cities and tourist hotspots.
The shortage is hitting lower-middle-class families hardest, with homeownership becoming increasingly out of reach in most regions. Even upper-middle-class buyers in high-cost areas are now feeling the financial strain.
Urban centres and popular tourist destinations are the worst affected. In St. Moritz, rental prices have surged by 15-20% over the past five years, driven by its reputation as a luxury destination. Chur has seen a more moderate but still above-average rise of 8-12%, compared to the national increase of 6-8%. Experts warn that housing stock growth will again fall short of demand this year. No quick solution is expected, as household growth trends are likely to remain steady until at least 2025. This means little relief for renters and buyers in the near future.
The housing squeeze shows no signs of easing, with affordability challenges persisting across most of Switzerland. Both renters and buyers will continue to face limited options, particularly in high-demand areas where prices keep climbing.
