Evidence suggests that many foreigners pay more in rent than Swiss tenants. Is this due to discrimination, or are other factors at play?
Chronic housing shortage in certain parts of Switzerland has been driving rents upward.
While many apartment seekers are affected by this phenomenon, official figures suggest that foreign tenants pay higher rents than their Swiss counterparts.
This disparity is evident from the Federal Statistical Office data analysed and published by the Tages-Anzeiger newspaper on July 5th.
What do these figures reveal?
According to the report, “it is becoming apparent that foreigners pay significantly more for rental apartments than Swiss citizens – regardless of how long someone with a foreign passport has lived in Switzerland.”
On average, foreign households in Switzerland pay 10.5 percent more than Swiss households, but even more in certain regions.
The biggest difference between Swiss and foreign population can be found, predictably, in areas where housing is scarcest: the Lake Geneva region, where foreigners pay, on average, 15.7 percent more for rent than Swiss , closely followed by Zurich (15.2 percent).
But the problem exists in other regions as well: 12 percent more in central Switzeland, 9 percent in the northwestern cantons like Basel, and between 5 and 7 percent in other regions.
Advertisement
How can this rent ‘inequality’ be explained?
There are several possible reasons for this gap:
Foreigners live in smaller apartments
Foreign nationals generally live in smaller dwellings than Swiss citizens.
For instance, while the average Swiss household’s living space is 48.2 square metres, foreigners have 35.8 square metres at their disposal.
According to the report, (and although the opposite may sound more logical), the price per square metre is actually higher in smaller apartments than in larger ones.
Foreigners are more likely to live in cities
Compared to the Swiss, who often prefer to settle in suburbs or in countryside, foreign nationals are more likely to live in urban areas. “
“Swiss cities are ‘arrival’ cities, meaning places where foreigners arrive, where they find work, or have a first point of reference. And rents are typically higher in urban centres,” said Marie Glaser, a spokesperson for the Federal Housing Office.
Advertisement
Lack of knowledge of the Swiss rental market
Newcomers often don’t know how the Swiss rental market works and what tenancy laws are in place,” Glaser pointed out.
Therefore, foreigners in Switzerland are likely unaware that they can challenge the initial rent during the first 30 days if, for example, they discover that they are paying significantly more for an apartment than their neighbours or their previous tenants.
Does discrimination play a role too?
Foreign citizenship, a lack of language skills, or one’s physical appearance can lead to someone being denied housing in Switzerland or only having access to a smaller selection of apartments, thus being discriminated against and forced to take a more expensive apartment.
While in Switzerland discrimination based on one’s nationality, religion, ethnic background, gender, or sexual preference is illegal, such cases do exist, even if not overtly.
READ ALSO: How foreign tenants in Switzerland face discrimination when flat hunting
In response, the Federal Housing Office is planning to investigate intervention options against discrimination based on nationality.
“The aim is to raise awareness among all those involved in the housing sector and to present best practices and experiences with how to avoid discrimination — for example, in the selection and allocation of apartments,” Glaser said.
