This is how much you need to earn to afford your own home - a new study reveals the income requirements for mortgages.

This is how much you need to earn to afford your own home - a new study reveals the income requirements for mortgages.

The Swiss real estate market has increased by 4.9 percent in the past twelve months. Purchasing a home is particularly expensive in Zurich, while it is cheapest in Bern. According to a study by Iazi, in Zurich, for example, an average annual salary of 525,000 francs is required to be able to afford a home. In comparison, the average gross salary in Switzerland is 80,000 francs. Rents have also risen in many cities, with Zurich leading the way at 3,800 francs.

According to Donato Scognamiglio, a real estate expert, the situation with rentals is expected to become even more difficult. He expects the reference interest rate to rise to over two percent and further interest rate increases by the Swiss National Bank. Demand for rental apartments is high, and the vacancy rate of around 1.2 percent indicates continued need. With an immigration of 60,000 people at the end of August 2023, a need for around 30,000 additional housing units will be generated.

The increasing cost of housing and increasing mortgage affordability requirements may lead to a decline in demand for homes and rental apartments. This can lead to the real estate market in Switzerland slowing down and price reductions becoming necessary. In response, builders could build fewer apartments and homes, which could lead to a long-term supply shortage.

According to www.20min.ch, the combination of rising prices and falling demand can lead to an imbalance in the real estate market. It is therefore important that political decision-makers carefully monitor the market and, if necessary, take measures to ensure the stability of the Swiss real estate market.

Source: www.20min.ch