Switzerland housing market faces severe shortage and rising prices

The Swiss housing market is facing significant pressure due to a severe shortage of available properties. As of June 1, 2025, approximately 48,400 apartments were vacant, representing about one percent of the total stock—the lowest level in twelve years. In urban areas, the situation is even more acute; Zurich reported a vacancy rate of just 0.1 percent.

This scarcity has driven residential property prices up by 3.5 percent in the first quarter of 2026. The shortage is attributed to a growing imbalance between high population growth and declining construction activity. While net migration reached approximately 75,000 people in 2025, new construction fell to 39,638 units in 2024, a 15 percent decrease from the previous year.

Factors contributing to the low supply include limited building land, rising construction costs, and lengthy permit processes. Additionally, the number of households is increasing faster than the total population due to a rise in single-person households.