Majority of People Do Not Own Their Own Home – Fewer Can Afford to Purchase

Swiss Housing Affordability Crisis: Why Owning a Home Is Becoming Unattainable for Many Families

Switzerland is facing a housing affordability crisis, with fewer families able to afford their own homes as prices continue to rise. Despite a low home ownership rate compared to other European countries, the increase in condominium ownership between 1970 and 2015 led to an increase in home ownership. However, recent data from UBS shows that only 15 percent of Swiss households can afford the “median home” today, compared to 60 percent 20 years ago. To purchase a median-priced home in Switzerland, a household now needs an annual gross income of 150,000 francs, significantly higher than the median household income of 115,000 francs.

Rising interest rates have also contributed to higher costs of home ownership, making it more difficult for households to afford property. Despite the challenges, surveys show a strong desire among the Swiss population to own their homes. However, affordability remains a significant obstacle, with median prices for condos and single-family homes exceeding what most households can afford based on their incomes. The UBS study predicts further price increases in the Swiss housing market for the coming years, driven by factors such as foreign buyers, strong growth in high incomes, and a potential economic recovery.

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