Swiss cities can use land ownership to expand affordable housing

Buying land to build public housing or grant building rights to cooperatives may be the most effective way for Swiss cities to increase affordable housing, planning professor Gabriela Debrunner told SRF.

The discussion follows a pledge by Berlin’s Left Party, which won the state election, to increase affordable housing by bringing large property companies into public ownership, effectively expropriating them. Expropriation is possible in Switzerland in principle, Debrunner said, but has so far been used mainly for railway construction and flood protection, not housing. Strong legal protections for property owners make it complicated.

Swiss cities face growing pressure on housing. Since 2014, rules on densification have restricted building on undeveloped land and the creation of new settlement areas, while many former industrial sites have already been built over. Population growth is increasing demand, and economic forces are also making housing less affordable.

Land prices have the greatest influence on housing costs, Debrunner said. With less available land in cities and higher demand, prices rise.

Cities can use financial incentives to subsidise affordable housing, planning rules such as zoning and quotas, value-capture measures and pre-emption rights, or contracts with private actors. Debrunner said these approaches require active municipal planning authorities and strong political will. Only 5 to 10 percent of land in Switzerland is owned by cities or non-profit housing providers, she added.