Government council against housing protection initiative
The Zurich cantonal government has rejected the cantonal housing protection initiative as it considers it to be counterproductive and bureaucratic. Instead, it is focusing on its own measures to promote construction activity and create affordable living space. A planned framework credit upgrade and a counter-proposal to promote non-profit housing construction should stabilise the housing market in the long term.
The cantonal initiative “Protect affordable housing – stop vacancies” aims to control rent increases through state intervention and restrict conversions to condominiums. This would allow municipalities to introduce an authorisation requirement for renovations, conversions and changes of use. However, the cantonal government sees the initiative as problematic: “Rent caps are counterproductive in the long term,” explains Carmen Walker Späh, Director of Economic Affairs.
Experience from Geneva: a warning example
The cantonal government refers to the situation in Geneva, where there are strict rent controls and authorisation requirements. There, it has been shown that new construction activity is declining significantly, while a considerable price difference has developed between existing and new rents. This regulation means that many people are staying in the same flat for a record-breaking length of time, which is exacerbating the housing shortage.
Danger for energy-efficient renovations and high-density construction
The government council also sees the danger that a rent cap could reduce the motivation for important renovations and energy-efficient renovations. This could have a negative impact on the quality of living and the condition of many properties. According to the cantonal government, the planned measures also encroach on property rights and increase the administrative burden due to complex authorisation procedures.
New strategies to promote residential construction
Instead of rent controls, the cantonal government is focussing on increased construction activity to relieve the market. A framework credit for cantonal housing promotion is to be doubled to CHF 360 million in order to specifically strengthen non-profit housing construction. In addition, a counter-proposal to the “More affordable housing in the canton of Zurich” initiative will further support the creation of affordable housing.
With these measures, the cantonal government is pursuing a long-term price-curbing approach aimed at combating the housing shortage through increased construction activity and targeted housing promotion. The rejection of the housing protection initiative reflects the aim of improving the housing situation without interfering with the economic freedom rights of property owners.