Swiss housing shortage worsens, federal office says

Switzerland’s housing market has tightened further, with shortages particularly affecting lower-income households and people in the Zurich metropolitan area, Central Switzerland and mountain regions, SRF reported, citing an assessment by the Federal Office for Housing.

The office said in its housing monitor that the supply of homes became tighter in 2025 and the first half of 2026. Too few new homes are being built to keep pace with the growth in the number of households. Population growth has pushed up demand and prices for rental and owner-occupied apartments. Switzerland’s population grew by almost 37 percent between 1990 and 2025, while rising incomes also contributed to higher prices.

Housing supply has failed to keep pace with demand, the office said. Around 18 percent of newly built homes last year replaced existing buildings, reducing the net increase in housing. Building land has also become scarcer in recent years.

For 2026 as a whole, the office continues to expect housing stock to grow too slowly to meet demand. The rise in building applications and permits since 2024 has improved the outlook, but stronger growth in the housing stock is not expected before 2027 at the earliest.