One in six people (16%) in Switzerland spends more than a third of their income on housing, exceeding a widely recommended limit, according to a survey published on Thursday by Comparis, a price-comparison website. Among tenants, the share rises to 22%.
A common rule of thumb is that housing costs should not exceed a third of a household’s gross income. Harry Büsser, a property expert at Comparis, describes this as a warning threshold. Those who persistently exceed it risk having to cut other essential spending, including on health care and retirement provision.
Poorer households face the greatest strain
Housing takes a particularly large share of poorer households’ budgets. The representative survey of 1,038 people, conducted in August, found that 36% of households with gross incomes of up to 4,000 Swiss francs spent more than a third of their income on housing. Among those earning more than 8,000 francs, the share was just 6%.
Homeowners are also affected
Some 7% of homeowners also exceed the threshold. Comparis considers this surprising because banks must assess borrowers’ ability to afford a mortgage over the long term before granting one. They generally base their calculations on an assumed interest rate of 5%, well above prevailing market rates.
Some 17% of homeowners spend more than 2,000 Swiss francs a month on housing. Most, however, face lower monthly costs than tenants. Half spend less than 1,500 francs, compared with 36% of tenants. The gap is wider below 1,000 francs: 27% of homeowners spend less than this, against just 11% of tenants.
Homeownership often appears cheaper than renting when measured by monthly housing costs, says Harry Büsser. But such comparisons overlook the equity tied up in the property, which could otherwise be invested to earn a return. Owners must also pay for maintenance, renovations and major repairs. Buying can make financial sense over the long term, he argues, but it is not necessarily cheaper.
Switzerland part of a global phenomenon
Switzerland is not alone on having housing costs that absorb a large share of household income. A study of Paris published in 2026 showed half of households renting unfurnished homes privately spent more than 34% of their disposable income on rent before housing assistance and excluding service charges. In New York, about 52% of renter households spent at least 30% of their income on rent and utilities in 2023; nearly 29% spent at least half.
London shows similar pressures through different measures. A survey in 2024 found that 36% of adults who rented or had a mortgage spent more than 40% of their personal monthly income on those payments.
The main driver of the housing challenge common to all of these places is that demand for homes in prosperous cities has grown faster than the supply of places to live.
More on this:
Comparis article (in French) – Take a 5 minute French test now
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