The housing shortage in Switzerland: a comparison of net migration and housing production

The housing shortage in Switzerland is a much-discussed topic, which is primarily influenced by the factors of housing production and net migration.

The increasing demand for housing is not being met

Demand on the Swiss rental housing market continues to rise strongly. At 98.900 people, net immigration in 2023 almost reached the record level of 2008. 80.684 people arrived in the first six months of 2024 alone. At the same time, the supply of housing is declining: The number of building permits fell to 32.700 residential units in 2023 — 8% less than in the previous year and 31% below the long-term average.

As a result, the vacancy rate fell further in 2023 from 1.31% in the previous year to 1.15%. This Scarcity Is Driving Up Rents: In the Fourth Quarter of 2023, Offered Rents Across Switzerland Rose by 4.7% compared to the previous year.

This trend continued in 2024; according to the Federal Statistical Office, 51,974 vacant apartments were counted in Switzerland on June 1, 2024, i.e. 1.08% of the total housing stock (including single-family homes). In total, 2,791 fewer apartments were vacant compared to the previous year, which represents a decrease of 5.1%.

Given that population growth remains high and housing production remains low, vacancy rates and rising rents are expected to continue to fall. The only remedy against this trend would be more attractive conditions for real estate development. The example of Basel City proves that more regulation is of no advantage. Nevertheless, there are players who would like to see a similar development in Zurich.

At CREATIO, we try to address the problem proactively by launching projects as responsible developers that offer added value for all stakeholders. Because only if politics and the real estate industry work together constructively do we have a chance to maintain the quality of life in Switzerland and create enough living space for everyone.

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