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Swiss house prices soar over past 20 years

stairwell in Switzerland.
Keystone / Ennio Leanza

House prices in Switzerland have soared over the past 20 years, a new study shows. Between 2000 and 2021, the prices of apartments increased by 94%, while those of individual homes rose by 80% and average rents went up by 30% over this period.

The study by CIFI and the University of Bern on behalf of the Federal Housing Office and cantonal planners analysed 600,000 real estate transactions and over one million rental contracts in Switzerland. Researchers from the Massachusetts Institute of Technology (MIT) in the United States also participated.

There are various factors behind the increase in house prices and rents, the researchers say.

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According to the study, the cost of housing in Switzerland reflects high incomes and demand for more space. In the Alpine nation, the average living space per person increased from 44 square metres in 2000 to 46 m2 in 2020.

In municipalities where per capita income is high, housing costs are systematically high. 

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Differences in local tax levels are also reflected in housing costs, with higher demand in municipalities where taxes are low. This effect is further reinforced by progressive tax levels. Residents in low-tax municipalities are willing to pay more for housing, leading to upward pressure on prices. On the other hand, low-tax municipalities have more high earners, which further increases housing costs.

Demographics also have an impact on housing costs. These rise when the population grows faster than supply. This dynamic explains 50% of the variance in housing costs in Switzerland between 1982 and 2013.

On the supply side, falling interest rates lead to lower rents and higher prices. Other factors, such as the availability of building land, the rate of ownership or the distance from an urban centre also influence housing prices, the study said.

This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles. You can find them here

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