Switzerland is experiencing the worst housing shortage in 22 years; the country’s economic outlook improves; plus other news in our roundup on Tuesday.
Switzerland is experiencing the worst housing shortage in 22 years
Due to limited supply and high prices, “the situation on the Swiss housing market remains tight,” the Federal Housing Office (BWO) said on Monday.
“While lower interest rates are helping to stabilise current rents, those looking for housing, have been facing an unprecedented shortage since 2014,” according to the BWO’s “Housing Market Monitor.”
In particular, low- and middle-income households are finding significantly fewer affordable options, the BWO pointed out.
The market downturn is most evident in urban areas and mountain regions; it is felt most acutely in areas such as Zurich, Geneva, Lucerne, Zug, St. Moritz, Chur, and Interlaken-Zweisimmen.
Economic outlook for Switzerland improves slightly
The Federal Government Expert Group on Business Cycles has revised upwards its forecast for Switzerland’s economic growth in 2026, adjusting the GDP to 1.1 percent – up from the previous one of 0.9 percent.
“The reduction in US tariffs has improved prospects for the sectors concerned, the Exert Group said.
In 2027, growth in Switzerland is expected to normalise at 1.7 percent, as the global economy gradually recovers.
The forecast is based on the assumption that international tariffs will remain at current levels. The uncertainty , however, “remains high,” it said.
READ MORE: What are the prospects for Switzerland’s economy in 2026?
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MPs approve new restructuring procedure for people in debt
Over-indebted individuals should be able to clear their debts by declaring bankruptcy.
Following the National Council, the Council of States also approved a bill to this effect on Monday.
It aims to allow these individuals to wipe the slate clean by declaring bankruptcy. Their debts will be discharged after a three-year period, provided they live on the bare minimum and pay the remainder of their income to their creditors.
Some conditions are, however, attached to this ‘relief’ procedure – for instance, the possibility of using it is limited to once in a lifetime.
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One in six Swiss people has a dispute with their neighbours
Life in Switzerland is generally peaceful.
However, conflicts between neighbours do arise, with 15 percent of residents experiencing frequent or very frequent disputes of this type.
This is what emerges from a new study by Immoscout24 real estate platform, which reports that the most common reason for conflicts – reported by 45 percent of respondents – is noise.
Next are issues such as the use of the laundry room (18 percent), smoking (17 percent), and dirt and litter in the shared premises (16 percent).
Topics like gardening or barbecuing offer significantly less potential for conflict, however.
READ MORE: How to avoid rows with your Swiss neighbours
If you have any questions about life in Switzerland, ideas for articles or news tips for The Local, please get in touch with us at news@thelocal.ch
