Focus

Switzerland’s 10-million vote: The housing conundrum

24.04.2026 – Theodora Peter and Susanne Wenger

Never before have so many people lived in Switzerland. A flourishing economy makes our country a popular destination for immigrants. This brings prosperity, but problems too. Will Switzerland, a small country, soon be too full?

Switzerland’s housing crisis is particularly acute in Zurich, the country’s biggest city, where booming demand collides with lack of availability. Whenever an affordable rental apartment comes on the market, hundreds jostle to view it. Pictures of would-be tenants waiting in long queues do the rounds on social media. A disheartening state of affairs. Such scenes have become symptomatic of an increasingly urgent problem in Switzerland.

Zurich, home to major job providers in the banking, insurance, tech and service industries, has a record-low vacancy rate, with only one out of every 1,000 apartments available, mostly high-end. The national figure is one out of every 100 apartments – a clear indication of an overheating market. This shortfall not only makes finding a place harder but also pushes prices up.

This student in Lausanne is making a point to highlight the housing shortage. Photo: Keystone

Regional differences, social impact

The housing shortage mainly affects cities like Zurich, Geneva and Basel – conveniently located urban centres that are particularly popular among EU migrants. Yet pressure is also felt in smaller cities and in popular resorts in the mountains, according to a government report. In some Alpine regions, locals and non-local workers are now struggling to find housing – partly because of the proliferation of second homes and short-term Airbnb rentals.

The cost of renting has been rising for over 20 years. New leases are especially prone to price jumps – of two to six per cent a year since 2022, depending on the region. If you are renting for the first time or moving, you can expect to pay significantly more compared to long-term renters who stay put. A country in which nearly 60 per cent of households live in rented accommodation is sensitive to such market forces. This has real-life consequences. A 2025 ETH Zurich study shows that low-income households in the five biggest urban areas are being priced out. But middle-income households are also being hit by housing costs eating up an increasing portion of their monthly budgets.

Cooperative housing project at the Koch site in Zurich – building about 360 affordable apartments for 900 people. The federal government wants to promote non-profit housing developments. Photo: Keystone

Immigration, regulation, speculation

It is no surprise that housing is a matter of heated debate ahead of the vote on the SVP’s “No to a Switzerland of 10 million” initiative. Protagonists put forward different explanations and solutions, depending on their political persuasion. The SVP cites “uncontrolled” immigration. It says that supply still falls short of demand despite more housing being built in the last 25 years, and that Switzerland is also losing its green spaces: “It is not that we are not building enough. The problem is too many immigrants.” Meanwhile, the Liberals (FDP) believe that regulation is acting as a drag. Planning requirements and objections are delaying building projects, they lament. The party wants to expedite procedures and relax noise restrictions.

Profit-driven speculators have accelerated rental hikes, says the Swiss Social Democratic Party (SP), which is collecting signatures for an initiative to combat extortionate rents as well as calling for more non-profit housing schemes. However, a popular initiative aiming for a fixed proportion of affordable homes failed at the ballot box in 2020.

Demand for skilled people from abroad is particularly high in the booming construction sector. Photo: Keystone

A complex range of factors

Studies and market analyses show that immigration exerts pressure on the housing market, but that other factors also need to be considered. According to federal data, immigration was a major driver of household growth between 2014 and 2023, fuelling demand. But average living space per capita also played a role, increasing from 45 to 46.6 square metres in the space of ten years.

The introduction of free movement between Switzerland and the EU in 2002 pushed up the price of renting and home ownership until 2016, according to a 2023 study by the University of Fribourg. Its impact waned thereafter, because the market responded and new homes were built – albeit not enough. Experts note that the housing market is a complex system based on supply and demand as well as building law and economic parameters. From 2018, construction activity declined not least as a result of high costs and a shortage of building land.

Addressing concerns over residential density

Scarce building land is not only down to Switzerland’s topography. It is also enshrined in law. In 2013, voters approved the revised Spatial Planning Act, which limits construction on greenfield sites and encourages inward urban development. It would be possible to create living space for two million people without developing new land, says a 2025 study by the Sotomo research institute. Yet projects to increase residential density often face resistance at local level. People fear being squeezed out of their neighbourhoods, or a decline in their quality of life.

Building higher and more densely is one way to create living space without developing new land. Modern developments – like this one in Schlieren (canton of Zurich) – prioritise short distances and green spaces. Photo: Keystone

Innovative concepts address these concerns, showing how it is possible to build higher and more densely while creating green spaces. One urban planning model is the “ten-minute neighbourhood”, where jobs and everything you need for daily life are in close proximity. Developed by ETH Zurich and funded by the Swiss National Science Foundation, the idea is designed to help cantons and municipalities implement the Spatial Planning Act.

An annual 40,000 to 45,000 new homes have been created in Switzerland in recent years. According to estimates, 30 to 50 per cent more is needed to balance supply and demand. Although the number of building applications has increased slightly of late, the government realises that there is no quick fix. Together with cantons, municipalities and the property and construction sectors, it has drawn up an action plan consisting of 30 measures.

“It is not that we are not building enough. The problem is too many immigrants.”

SVP position

These range from more efficient authorisation processes to better use of building land. But they are only recommendations for the time being. More tangible is a proposal that the Federal Council has put to parliament: a fund that issues loans to non-profit housing developers being bolstered to the tune of an extra 150 million francs between 2030 and 2034, in order to facilitate the construction of low-cost homes. The Swiss parliament will vote on the scheme this year.

More affordable homes and an action plan to combat the housing crisis – this is how the government hopes to blunt the SVP’s “No to a Switzerland of 10 million” initiative. Will voters be on board? We will find out on 14 June.

Focus | Switzerland’s 10-million vote

Never before have so many people lived in Switzerland. A flourishing economy makes our country a popular destination for immigrants. This brings prosperity, but problems too.

– Part 1: How much immigration can Switzerland take?

– Part 2: The economy relies heavily on foreign Workers

– Part 3: The housing conundrum

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