Swiss tenants are losing patience with rising rents, which have jumped by nearly a third over the past 20 years despite falling reference interest rates, according to a study by Comparis.
Rents have risen by 31.9% since 2005. This can hurt when it hits tenants in one go. A 32% rise in rent over two decades corresponds to an average annual increase of about 1.4%, modest by international standards. Switzerland, however, endured long spells of near-zero inflation or outright deflation between 2010 and 2017. Over the full 20-year period, average annual inflation was just 0.62%, enough to lift average prices by only 13%. Average wages rose 22%, significantly behind the 32% rise in rent.
Calls for reform
The tenants’ association Asloca says households are overpaying by an average of CHF 360 a month. Xavier Rubli, who heads its regional branches, argues that Switzerland’s rental market is “dysfunctional” and in need of systemic reform, including automatic rent controls.
Property-industry representatives counter that the problem lies not in regulation but in supply. The housing market is out of balance, according to Frédéric Dovat, secretary-general of the Swiss Real Estate Professionals’ Union. What is scarce is expensive — we simply need to build more, he said.
Capping rents may ease pressure for existing tenants but rarely fixes the underlying problem. Price controls treat the symptom — high rents — rather than the cause: a shortage of housing. When landlords are prevented from charging market rates, the incentive to build, renovate, or maintain rental properties diminishes. Supply tightens further, worsening scarcity over time.
Fewer vacant homes
Comparis attributes the surge in rents largely to a shrinking supply of vacant properties. The vacancy rate has fallen to 1%, its lowest level since 2005, and down sharply from 2021. Geneva is hardest hit, with only 0.32% of homes unoccupied, followed by Zug (0.42%) and Zurich (0.48%). The canton of Jura has the highest rate, at 3.03%.
Dirk Renkert, a housing-market expert at Comparis, points to several causes: rising construction costs due to post-pandemic supply-chain shortages, and higher mortgage rates, which landlords have passed on to tenants.
Despite lower benchmark interest rates, the firm’s Lomo index shows that rents have continued to climb — an indication that the Swiss housing market remains tight, costly, and politically sensitive.
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