Rental Costs in Switzerland Rise by More Than 5 Percent a Year
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Loading... - Elke Christoph
- 03 Jul 2024
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A new report from housing platform Homegate and the Zürcher Kantonalbank (ZKB) reveals that the cost of renting a house or apartment in Switzerland has risen significantly over the past 12 months. The Swiss bank noted that no area in the country has seen a decline in rental costs during this period.
Rental Costs in Switzerland Continue to Soar
According to the data, the average cost of renting in Switzerland has increased by 5.9 percent from the end of May 2023 to the beginning of June 2024. These increases have persisted in recent weeks, with average costs rising by 0.4 percent in the last month alone.
In the past month, the biggest rental cost rises were reported in Schwyz and Glarus, where prices quoted in rental contracts increased by 1 percent. Cantons Lucerne and Zug (0.9 percent), as well as Uri and Geneva (0.7 percent), also saw significant price rises. Among cities, Lucerne recorded the largest increase, with rental costs rising by 2.5 percent compared to April 2024.
In contrast, Graubünden experienced a 2.1 percent drop in rental costs this month; however, prices are still 8.2 percent higher compared to June of the previous year. Among urban areas, only Lugano (-0.8 percent) reported a decrease in rental costs in May, though they remain 3 percent higher than they were a year ago.
Annual Figures Show Significant Increases
Looking at the annual figures, the biggest rent increases were found in Canton Schaffhausen, where prices rose by 10.8 percent. This was followed by Canton Zurich (8.7 percent), Zug (8.9 percent), and Graubünden (8.2 percent). Lucerne saw the fastest rental increases over the past 12 months, with an 8.8 percent rise.
Underlying Causes and Future Projections
While the report did not delve into the reasons behind the significant rise in rental costs, most experts attribute the phenomenon to a lack of housing. Housing expert Stefan Fahrländer predicted in May that Switzerland will need to build 522,323 apartments by 2040 to meet demand.
This rapid increase in rental costs underscores the urgent need for more housing development across Switzerland to keep up with the growing demand and mitigate the impact on renters.
