Housing cost gap widens further
While the situation in the high-price segment is easing slightly, the housing market remains difficult for the middle class and lower-income households. Central Switzerland and mountain regions are particularly affected. At the same time, the gap between existing and asking rents continues to widen.
The updated Housing Market Monitor published by the Federal Office for Housing shows a differentiated trend for 2024. While demand for high-priced flats is falling slightly, the search for upper middle-class households and above remains increasingly difficult. Regions with a limited supply of housing, such as Central Switzerland and mountain regions, are particularly affected.
However, the greatest challenge is for the lower middle class and lower-income households. The scarcity indicator confirms that family homes in particular are difficult to find. Due to rising rents, many households are opting for smaller flats and compact floor plans, which is adding to the pressure in this segment.
Housing cost gap between movers and settled tenants is growing
One significant trend revealed by the Housing Monitor for 2025 is the growing gap between existing and available rents. While settled tenants and owners could benefit from stable or even falling housing costs, for example due to a possible reduction in rents as a result of the falling reference interest rate, new tenants and buyers will continue to be confronted with rising housing costs.
Households that need to move are particularly hard hit. New tenancy agreements are often concluded at significantly higher prices than existing tenancies. This trend is further exacerbating social inequality on the housing market.
Building applications as a glimmer of hope
A slight easing of the situation could result from an increase in building applications and building permits, which have been on the rise again since 2024. However, these additional flats will not come onto the market until 2026 at the earliest. At the same time, growth in the housing stock remains insufficient to offset rising demand at less than 1% per year.
Long-term challenges for the housing market
The Housing Monitor shows that immigration remains a key driver of housing demand. While the differences between domestic and foreign households in terms of housing requirements have largely disappeared, the overall supply situation remains challenging.