Housing in Switzerland: a nation of renters
Low homeownership, high rents, a tight market, the reference interest rate: how housing works in Switzerland and why most people rent.
Switzerland is one of the countries with the lowest homeownership: a majority of the population rents, which is rare in European terms. Becoming an owner is difficult, notably because of high prices and the large down payment required.
A market under strain
In the big cities and their surroundings, available flats are scarce and rents high — finding an apartment in Zurich or Geneva can be an ordeal. Demand, driven by population growth and economic appeal, outstrips supply.
The reference interest rate
A Swiss particularity: rents are partly tied to an official “reference interest rate”, calculated on average mortgage rates. When this rate rises, landlords can raise rents; when it falls, tenants can request a reduction. A mechanism regularly at the heart of the news and of tensions between landlords and tenants.
Frequently asked questions
Do people rent or own in Switzerland?
A majority of the population rents: Switzerland has one of the lowest homeownership rates in Europe.
What is the reference interest rate?
An official rate, based on average mortgage rates, to which rents are partly tied: its rise or fall can justify a rent adjustment.
Related reading
- The cost of living in Switzerland: expensive, but why?
Zurich and Geneva among the world's most expensive cities, but high salaries: what is costly in Switzerland and what offsets it, explained simply.
- The largest cities in Switzerland: Zurich, Geneva, Basel…
Zurich, Geneva, Basel, Lausanne, Bern: the ranking of Switzerland's largest cities by population, and why the urban area changes everything.