Zurich housing market shows signs of easing as vacancy rates rise

The Zurich housing market is showing initial signs of easing after years of scarcity. According to the Zürcher Kantonalbank (ZKB) real estate barometer for the third quarter of 2026, the vacancy rate in the Canton of Zurich rose from 0.48% to 0.52%. ZKB attributes this trend to lower immigration and a recovery in construction activity.

Rental price pressure has also decreased. In the city of Zurich, monthly rent increases reached 1.5%, a significant slowdown from growth rates that occasionally exceeded 10% in 2024. However, homeownership prices in the canton rose by 1.6% in the third quarter. ZKB expects annual home price growth to moderate to 2.5% in 2026 and 2.0% in 2027.

In the financial sector, Zurich Insurance Group shares saw gains on the SIX Swiss Exchange, rising 1.8% to 589.40 CHF during midday trading. The stock's performance contributed positively to the Swiss Market Index (SMI).