Housing shortage in Switzerland: Experts predict rising housing costs and involuntary densification - a financial expert analyses.

Housing shortage in Switzerland: Experts predict rising housing costs and involuntary densification - a financial expert analyses.

According to a report by www.blick.ch, the Swiss housing market is undergoing historic change. The oversupply of housing has given way to an acute shortage, which is leading to sharply rising housing costs and the arduous search for accommodation. The densification of living space is inevitably driven by price, as supply does not keep pace with demand. The current situation represents a massive challenge for those looking for an apartment, as they have to make compromises in terms of space, location quality and occupancy density due to the limited supply.

The authors of the study emphasize that 10,000 to 15,000 homes are not built every year, which leads to a further loss of prosperity. Although the new spatial planning law was intended to promote densification, especially in cities, this process is being significantly slowed down by objections, over-regulation, hoarding of building land and rising building prices.

The effects on the real estate market are clearly noticeable. Rising housing costs and the involuntary densification of living space mean that people are forced to group together in larger households and use less space. In addition, prices for owner-occupied residential property have remained stable despite lower demand and a slightly increased number of vacant properties.

The supply of homes remains tight and prices have largely stabilized, with some regions even seeing slight price declines. The future of the home market is forecast as a soft landing, with moderately declining prices from 2024.

Overall, it is clear that the current development on the housing market brings with it considerable challenges for those looking for an apartment and homeowners. It remains to be seen how the measures to promote new housing construction and the regulation of the real estate market will affect the situation in the coming years.