These are apartments for people who come here a couple of times a month at best but don’t want a hotel, but still want their own place. Either for business or to stay the night after visiting the opera.
The million-dollar apartments with a tiny kitchen in high-rises are primary examples.
Apparently also common with apartments in the Niederdorf.
Claudio Saputelli, head of property analysis at Swiss bank UBS, puts it simply: “The issue is not primarily one of supply – it’s demand.”
A period of higher capital interest rates, rising costs of building materials, and a shortage of skilled labour have all slowed down new construction projects in recent years. However, the main driver of the housing shortage is immigration.
This chart is very interesting. I was lucky last time I had to find an apartment, it was the peak of vacancy rate. It also brings some perspective, the extreme housing shortage is normal conditions in the 21st century in Switzerland
Finally, there’s some speculation about interest rates and housing construction. Apparently, negative interest rates pushed money managers to invest in construction. So, construction may pick up speed in the next years, and greater availability of apartments 5-10 years in the future.
“People over 60 tend to sell their homes,” says Budliger. “That’s why we will soon see more people putting their properties on the market. The 60-year-olds also belong to the generation with the highest rate of home ownership.”
By contrast, the younger generation tends to live in smaller households. In 2024, Switzerland’s birthrate dropped to a record low of 1.28 children per woman. “Sooner or later, we will have too many single-family homes and not enough families to buy them,” says Budliger.
The first signs indicating a shift in the market are already on the horizon. Budliger expects this trend to accelerate from 2030 onwards, as many homeowners will be so heavily indebted that their pensions will not be enough to renew their mortgage.
“If the market tips – and it will tip – it can happen quickly, and then people will be keen to sell sooner rather than later,” says Budliger.
Well, people heading for 60 should seriously think abuot deviding their houses into flats then. It would make wonderful places to live in privacy with gardens. And very individual, none of this mass-henhouse bunkers they tend to build these days.
Getting the rent would increase their pension.
They could even stay in one of the flats (although that could be uncomfortable for the renters of the other flat(s) as such house-owners can be a bit of a pain if they don’t let go )
Or maybe the older people give their places to their children that are probably starting families themselves? I have friends that at some point swapped places with their parents as they started families themselves, and it was such a no-brainer, I don’t get why are more people not doing this.
If I were in my hometown, where my parents own a single family house, I would make a serious case about them moving to a place of their liking, me covering that cost, and letting me use the big place for my family of 4.
I understand the typical Swiss family doesn’t have the same closeness like us Southerners, and relationships tend to be a bit arms-length, but still this makes so much sense. That should tackle the long term issue, and just leave an awkward period between leaving the parental home and starting a family.
Obviously things can get complicated if there are multiple siblings starting a family more or less around the same time but that will get complicated also when the parents pass and inheritance time comes so you’re just dealing with it a bit earlier, and you unlock so many practical issues.
So, great news. No multiple siblings fighting for the parent’s house.
About dividing the house. I lived for some years in a multifamily house with 4 apartments. This was a 1800s house with beautiful spiral staircase. Only 3 doors and some extra bathrooms were added to divide the house. Owners lived at ground level and they are extremely nice and patient.
Call me crazy but after those years in the family house, I don’t miss at all living at the top floor with the ceiling being too low in some places, the old oil heating with a schedule, the wall radiators, old windows. I love my modern hen house with floor heating and underground parking.
I think it may not be at 60, but at some point, a house is too much to manage and they will need care or want something more easy. But this might happen at 70 or 80.
I was also surprised by 60 YO number. But that’s the article.
I can totally see how keeping a house in good condition after a certain age may be an issue. The garden, dealing with snow/ice in winter, more stuff to clean, higher energy costs. Compare that to an apartment with elevator, everything on a single floor, and laziness may win
Everyone is different, but I’d say at least 70 YO.
It depends. My parents (going for 80, in Germany) kept the house and the huge garden outside the village (leased from the village) and literally poured most of what they had into it.
Even the bank advisor from the Sparkasse asked them if they really wanted to do that - and that says something.
They are now pretty much tied to it. Other people might have chosen to get rid of it and downsize, to be able to travel more.
But it’s their life, their choice.
At least, the house is in good shape now, just interior renovations piling up.
I see, they assume that most owners can’t afford buying, but buy out of necessity if the monthly mortgage payment is cheaper than rent, but as soon as they don’t have a need to pay such high monthly installments they downsize
City of Zürich bought 117 apartments and 4 commercials spaces from UBS this week for 123.93 million francs. There is a plan that 1/3 of rental housing is not for profit by year 2050.
Roughly 1 million CHF per apartment. Jut wondering what the rental price will be.
They’ll rent it out at subsidized prices to some lucky low earners, while middle class will have to pay taxes for this cross-subsidy and find something else at even higher price due to the state competing with them and using their taxes. Brilliant.