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Why are so many people moving out of Swiss cities?

Many people, including foreign nationals, flock to Switzerland’s urban centres because that’s where the highest-paid jobs are. But this trend is now experiencing a worrying reversal.

Why are so many people moving out of Swiss cities?
Housing in the countryside is cheaper — for now. Photo by Tobias Tullius on Unsplash

Most people in Switzerland live in cities and immediate areas around them.

Unlike huge urban centres in many other countries, where there is a lot of visible crime and poverty, Swiss cities are generally safe, attractive, have a good infrastructure — including an excellent public transportation network — and offer many economic opportunities.

In fact, both Zurich and Geneva rank highly among world’s ‘most liveable’ cities in the 2022 Global Liveability Index.

Both cities got top scores across all categories, with highest marks given for heath care (100), followed by infrastructure (96.4), and stability (95).

READ MORE: Why are Geneva and Zurich high among world’s ‘most liveable’ cities?

Basel and Lausanne also scored highly in international surveys.

However, despite their appeal, a new trend is developing: more people are leaving the cities and moving to the countryside.

Why is this happening?

Blame it on the growing shortage of affordable housing and skyrocketing rents.

“The middle class can no longer afford to live in the city,” said Nicola Hilti, researcher at the University of Applied Sciences in St. Gallen. “This is particularly the case in Zurich, Zug, Geneva and Basel.”

READ MORE: Which parts of Switzerland are hardest hit by housing shortage

According to a report in the Sunday’s SonntagsZeitung, about 1 million tenants in Switzerland suffer the so-called ‘rent burden’ — which means they pay too much rent in relation to their income.

This combination of scarce housing and high rents is driving an increasing number of middle-class families out of the cities and into the countryside, where rents are, at least for now, lower.

This is especially the case when children arrive and the need for larger accommodations becomes more urgent. “This is when many middle-class families find themselves broke,” said Hilti, who interviewed many of the departing families for her study.

“They leave either for a cheaper area or completely out of town,” she added.

If this exodus continues, however, it could have a negative impact on the economy, experts say.

“Our cities thrive on diversity and interaction,” said urban sociologist Barbara Emmenegger. “If the middle class leaves, part of the economy will collapse. Shops and restaurants geared to this population group will disappear.”

And the shift toward the countryside will not benefit rural areas either.

“If people can no longer afford to live in the city and move to the countryside, road traffic is likely to explode,” she pointed out.

Also, rural regions may not provide cheaper housing for much longer.

“Switzerland is heading towards a housing shortage of unprecedented proportions,” said Fredy Hasenmaile, Credit Suisse’s real estate expert. “In urban centres, housing is already very scarce. The problem has not yet reached the countryside, but it is only a matter of time.”

How can this problem be resolved?

The most logical solution is to build more housing in and near urban centres and keep rents from soaring.

While elected officials recognise that the situation on the housing market is critical and are proposing various ways to alleviate the problem, nothing is happening at the present time in terms of concrete measures.

It is expected that the housing and rents will become the focus of some intense discussions in the parliament, possibly later this year.

In the meantime, the Swiss Tenants Association has been pushing elected officials to introduce rent control measures, so this issue is definitely on the political agenda. 

READ MORE: How can Switzerland solve its housing shortage and curb rents?

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PROPERTY

Where in Switzerland are most second homes located?

Whether mountain homes or other types of residences, some areas of Switzerland have more ‘holiday’ dwellings than others. Where is the highest number found?

Where in Switzerland are most second homes located?

Many people associate the term ‘second home’ with chalets in the Swiss Alps.

And while many people do own properties there, which they use on weekends or during holidays, official data shows that many of these accommodations are located elsewhere as well.

This information comes from the Swiss Office for Spatial Development (ARE), which keeps track of the second-home situation throughout Switzerland.

But first: What are the rules on owning a second home?

Since Switzerland is a small country with a limited supply of land, the constructions priority is given to main residences, especially considering the acute housing shortage in many parts of the country.

For that reason, second homes can’t exceed 20 percent of any community’s overall housing stock.

Right now, “it is impossible to build second homes in 340 municipalities,” which had already reached this threshold, according to ARE. 

What are these areas?

At the end of 2023, these eight communities were added to the list of municipalities where construction of new second dwellings is no longer allowed:

  • Leissigen (BE)
  • Lauwil (BL)
  • Jussy (GE)
  • Pregny-Chambésy (GE)
  • Movelier (JU)
  • La Côte-aux-Fées (NE)
  • Démoret (VD)
  • Le Lieu (VD)

Where are most second homes located in Switzerland?

They are primarily concentrated in the southern part of the country, in traditionally tourist areas of Valais, Ticino, and Graubünden.

But a number of them are also located in other regions, like the Bernese Oberland and St. Gallen.

You can see each individual region on a map, here.

Note that in many of these areas, the proportion of holiday homes exceeds 50 percent.

That’s because the legislation limiting these properties to 20 percent went into effect in 2016, while many houses in tourist areas were built before that date. 

Does this mean you can no longer buy a second home in these communities?

No. You can purchase existing properties, but you can’t build new ones.

Also, if you happen to own a primary residence in these towns, you can’t all of a sudden decide to convert it into a holiday home.

This, in fact, has proven to be a problem in several cities, including Geneva, where primary residences have been transformed into holiday homes, which means they can no longer be rented out to permanent tenants.

This ‘transformation’ exacerbates the overall housing shortage.

Last but not least: does owning a second home in Switzerland allow you to live here full time?

Good try, but no.

Buying a home in Switzerland does not generally give any additional rights with regard to residency. 

If you are a EU citizen or national of EFTA (Norway, Iceland, or Liechtenstein) , then you will be able to live in Switzerland, as long as you have enough money to support yourself.

Non-EU / EFTA citizens will usually only be able to spend time in Switzerland under the 90/180 rule — which means a  maximum of 90 days in Switzerland out of 180 consecutive days.

READ ALSO: Can second-home owners extend their stay in Switzerland? 

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