Switzerland has seen a decline in the availability of rental apartments and homes, according to the latest figures from the Federal Statistical Office (FSO).

As of 1st June, there were 51,974 vacant homes, accounting for just 1.08% of the country’s total apartment and single-family housing stock. This vacancy rate has decreased by 0.07 percentage points over the past year, reflecting a reduction of 2,791 vacant homes compared to the previous year.

This marks the fourth consecutive fall in the vacancy rate, attributed to a reduction in the supply of residential properties available for rent, though the decrease is less pronounced compared to previous years, the FSO stated. 

Of the seven largest regions, six reported a year-on-year decrease in vacancy rates. The most significant drop occurred in northwest Switzerland, where the rate fell from 1.22% to 1.06%. In contrast, the greater Zurich region experienced a slight increase, with its vacancy rate rising from 0.53% to 0.56%.

In addition, the FSO has observed a decrease in the number of vacant rental properties while the number of vacant properties for sale has increased 

As of the latest figures, there were 40,423 unoccupied rental properties, which is 8.6% fewer than the previous year. This decline in the supply of vacant rental properties started in 2021 and continues, although the decrease is less severe compared to previous years, with drops of 13.5% in 2022 and 15.9% in 2023.

“We can say that we really have a housing shortage,” said Corinne Dubois, an economist and expert at Wüest Partner on Swiss public radio, RTS.

“One way to improve the situation would be to stimulate new construction activity, in particular by simplifying the regulations a little, by allowing more floors to be built, extensions, more densification and also by trying to make these procedures a little faster,” she added.

Another potential solution is to convert office spaces into apartments.

“We are currently seeing vacancy rates for offices increasing while they are decreasing for residential properties,” said Dubois, who also noted key factors to take into account including the location, the type of building or the cost of the required work.

“In the short term, we don’t really see any immediate improvement in the situation,” said the economist.