The right-wing Swiss People’s Party (SVP) has long held foreigners responsible for straining the country’s infrastructure, including the housing market.
The SVP’s longstanding claim has been that housing in Switzerland is becoming increasingly scarce solely because it is being snatched by foreigners to the detriment of Swiss citizens.
It is true that the number of immigrants, primarily from the EU, has been growing steadily. And it is just as true that the housing shortage has been worsening as well.
But is there a clear link between these two phenomena, as the SVP claims, or are they purely coincidental?
The answer to these questions is nuanced.
Many factors at play
That’s because there are several reasons why housing is scarce in Switzerland. One is the increase in construction costs, which has slowed down activity in the sector.
Another is that Switzerland is a small country and building land is becoming increasingly scarce.
Immigrants can’t be blamed for either of these factors.
However, a new analysis carried out by Wuest Partner consultancy group sheds more light on this complex subject.
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Higher demand, higher rents
The study confirms that immigration does stimulate higher demand for rental housing and, consequently, higher rents as well.
As the population increases — primarily through immigration, as Switzerland’s birth rate has been falling — demand for housing goes up too, putting upward pressure on rents.
A 1-percent population growth, for instance, leads to a 1.37-percent increase in rents, the study found.
“Population growth certainly influences prices, but it is not the primary driver,” the report noted.
It went on to say that “in the rental market, the benchmark mortgage rate, inflation, and vacancy rate have the greatest influence. Thus, immigration plays a significant role in price dynamics, but it is part of a broader set of economic factors.”
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Larger cities, smaller rooms
Apart from the main question — that is, are immigrants responsible for a tight housing market and high rents — the analysis also reveals some interesting facts related to the kind of accommodations foreign nationals prefer in Switzerland.
This is what researchers found:
Size matters
Foreigners typically occupy smaller dwellings: while Swiss households have 1.9 rooms per person, this number is 1.4 for foreign households.
This gap is also reflected in the living space per person, which is significantly lower for foreigners.
Town versus country
Immigrant households mostly want to settle in urban areas.
Only about a third of them consider moving to the countryside, compared to 40 percent of Swiss people.
Environment
The Swiss attach more importance to aspects related to sustainability of their dwellings — such as ecological building materials and renewable energy.
Also important is the proximity of their surroundings to cultural offerings.
Foreigners, for their part, prioritise proximity to the workplace, accessibility by car or public transport, as well as the presence of schools in the neighbourhood.
