As of June 1, Switzerland had 51,974 vacant homes, representing only 1.08% of the country's total housing stock, including apartments and single-family homes.
This marks a decline of 0.07 percentage points over the past year, with 2,791 fewer vacant homes than the previous year.
This is the fourth consecutive year that the vacancy rate has dropped, mainly due to a shrinking supply of rental properties, although the decline is less steep compared to previous years, according to the Federal Statistical Office (FSO).
Homeownership Eludes Most Swiss Residents
Six of Switzerland’s seven major regions saw a decline in available housing over the year. The sharpest drop occurred in northwest Switzerland, where the vacancy rate fell from 1.22% to 1.06%. The greater Zurich area was the only region to see a slight increase, with vacancies rising from 0.53% to 0.56%.
At the cantonal level, Zug has the tightest housing market, with a vacancy rate of just 0.39%, followed closely by Obwalden (0.44%) and Geneva (0.46%). In total, 18 cantons experienced a decrease in vacancy rates over the past year, while eight saw slight increases.
Canton Jura remains the most favorable for renters, with the highest vacancy rate in the country at 2.98%, followed by Solothurn (2.37%) and Ticino (2.08%).
Rising Rental Costs Add Pressure to Swiss Market
The FSO noted a continued drop in the number of vacant rental properties, while vacant properties for sale have increased. A total of 40,423 rental properties were unoccupied as of June, marking an 8.6% decline from the previous year. This trend of declining available rental units has persisted since 2021, though the drop has slowed compared to earlier years (-13.5% in 2022 and -15.9% in 2023).
“We are undoubtedly facing a housing shortage,” said Corinne Dubois, an economist and housing expert at Wüest Partner, in an interview with Swiss public radio RTS. She identified a slowdown in construction as a major factor contributing to the crisis.
“One solution to improve the situation would be to encourage more construction activity, particularly by simplifying regulations, allowing more floors to be added, expanding developments, and accelerating approval processes,” Dubois suggested.
Converting Offices into Housing: A Possible Solution
Another potential remedy is converting vacant office spaces into residential units. “Office vacancies are rising while residential vacancies are declining,” Dubois explained. However, she noted that several factors, such as location, building type, and renovation costs, must be taken into account.
In the short term, Dubois does not foresee a quick resolution to the housing shortage. However, she expressed cautious optimism, stating, “We’ve seen a notable increase in permit applications for rental housing in the second quarter of 2024.”
“This doesn’t mean the housing crisis is over, as these permits still need approval and the homes must be built. But this uptick in construction activity could provide some relief to tenants in the medium term,” she concluded.