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RENTING

Renting in Zurich: Why sticking to one apartment will save you money

Renters in Zurich who frequently move around will pay more rent than those who have been living in their flat for a long time, a new study reveals. But why is that?

Published: 7 January 2023 10:36 CET
The Swiss city of Zurich.
The Swiss city of Zurich. Photo by Ilia Bronskiy on Unsplash

So far, there has been little information at the cantonal level on the extent of the difference between those recently agreeing their entering a rental agreement and those who have been renting long-term. A new publication by the Statistical Office of the Canton of Zurich now sheds light on the situation.

According to the study, households that have not changed residence for a long time pay less rent than those who move around.

For example, between 2016 and 2020 those in long term rental agreements paid on average a net monthly rent of CHF 1,840 for a four-room apartment in the canton of Zurich and those newly moving in paid a whopping CHF 2,100.

READ ALSO: Where are property and rent prices rising the most in Switzerland?

However, this figure conceals major differences in terms of the year the property was built as well as the region it is situated in. Apartments in Zurich built between 1945 and 1970, for instance, are the cheapest to rent, while newly built apartments are understandably the most expensive. Gunning for an apartment in the city or near the lake will also set you back more than relocating to the countryside – no matter the size.

READ ALSO: How can I reduce my rent price in Switzerland?

New rent agreements are more costly than longterm rents – especially in the city of Zurich

If we are to compare the rent of the households moving in with the rent of the longterm households, the same pattern emerges regardless of the apartment size and price region: Longterm households essentially pay less than new renters.

The differences between longterm and new rents are particularly notable in the city of Zurich where the vacancy rate is also lowest, and most households rent, thus demand is always high. On the other hand, the differences in rent are small in the less expensive municipalities, most of which are in the northern and western regions of the canton.

READ ALSO: How to find a flat to rent in Zurich

So, what’s behind the difference?

The study found that households opting to move out of their residence have often not lived in their apartments very long and therefore already pay higher rent prices. As a result, the rent cost for the subsequent vacant apartments is already significantly higher than those apartments in longterm rents. Hence the reason why those moving in will also pay a higher rent price.

Still, there are exceptions, especially in the cheaper, mostly peripheral communities in the north and east of the canton of Zurich where around 70 per cent of households rent.

As a general tip, it makes more sense to commit to an apartment longer term if you are looking to save money on rent.

 

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SHOPPING

REVEALED : Are ‘discount’ supermarkets in Switzerland really cheaper?

Lidl, Aldi and Denner claim their prices beat those of large Swiss retailers. But is this really the case?

Published: 18 April 2024 11:40 CEST
Updated: 1 May 2024 06:35 CEST
REVEALED : Are ‘discount’ supermarkets in Switzerland really cheaper?

Common consumer goods (except one) are typically more expensive in Switzerland than in neighbour countries — sometimes by much.

This includes food.

READ ALSO: Why Switzerland is the most expensive country in Europe

That is especially the case of largest Swiss chains, Migros and Coop, while Denner, Lidl, and Aldi say their food prices are significantly lower.

To find out whether this claim is actually true, journalists from RTS public broadcaster’s consumer programme went shopping in each of these supermarkets. 

They purchased the same 30 products in each of the five supermarkets on the same day, to ensure that the price comparison is as accurate as possible.

Not what you’d expect

In each of the stores, the investigators purchased only the lowest priced items from the supermarkets’ budget lines.

It turned out that most money was spent at Denner, widely considered to be one of the lowest-priced supermarkets.

The total for the 30 items came to 181.67 francs — more than was spent at the country’s more expensive stores, Migros and Coop, where identical basket of goods cost 170.37 and 167.82 francs, respectively.

(That, in itself, is surprising as well, because Migros typically has lower prices than Coop).

As for the other two supermarkets, these purchases cost 166.59 francs at Aldi and 162.05 at Lidl.

So the difference in price between Migros and Coop versus Aldi and Lidl is minimal. But what is even more surprising is that the cost of groceries at ‘cheap’ Denner is actually highest of the lot, by between 11 and nearly 20 francs.

Migros and Coop performed quite well in the comparison survey because most of the items purchased in those stores came from their budget lines, M-Budget and Prix-Garantie, respectively, both of which were introduced to compete with Aldi and Lidl.

But how important is price? Patrick Krauskopf, a professor of anti-trust law, told RTS: “German, French, English, Spanish and American consumers pay a lot of attention to price. In Switzerland, consumers place more emphasis on quality of service. Price is almost secondary.

“Distributors have realised this and have stopped competing fiercely on price.”

Big versus small

While this particular analysis focused on supermarket chains, another survey, conducted at the end of 2023, looked at prices in small grocery shops. 

Common logic has it that it is cheaper to shop in supermarkets than a local corner store, because big retailers purchase products in large quantities, which means lower prices for consumers.

However, prices in some local shops were found to be “up to 30 percent cheaper than Migros and Coop.” 

The reason is that in order to cut costs, small grocers may buy their products from the most cost-effective suppliers, a tactic which includes importing some items.

Another reason for lower prices is that unlike major supermarkets, which ‘pretty up’ their stores for better presentation of products, these small retailers are ‘no-frill’ shops. This means little money is invested in décor, so there are no extra costs to pass on to consumers.

 READ ALSO: Why it might be cheaper to avoid the big supermarkets in Switzerland
 

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