ZKB spots first signs of relief in Zurich housing market

Zurich Cantonal Bank sees early signs that pressure on the canton’s housing market may be easing, SRF reports, but homes in the Zurich area remain scarce and expensive.

The bank’s property expert Jörn Schellenberg said queues at apartment viewings were getting shorter. The canton’s vacancy rate edged up from 0.48 per cent to 0.52 per cent over the past year, even as the number of empty homes fell across Switzerland.

The bank attributes the change to slower immigration and more construction. It expects 8,500 new apartments in the canton this year and about 9,000 in 2027. The additional supply could gradually improve the chances of finding a home, though Schellenberg said the market remained tight and described the figures as an early sign of a possible turning point.

Rents are not expected to fall. According to the bank’s analysis, asking rents are rising less sharply than in recent years. The bank also expects the mortgage reference rate to increase again by the end of 2027, which could allow landlords to raise rents on existing homes by about 3 per cent.