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FACT CHECK: Are immigrants really responsible for Switzerland’s housing shortage?

The right-wing Swiss People’s Party (SVP) is blaming foreign nationals for the deteriorating situation on the property market. But is this really the case? We look at the facts.

FACT CHECK: Are immigrants really responsible for Switzerland's housing shortage?
Immigrants in Switzerland live in small dwellings. Photo by Arwin Basdew on Unsplash

SVP has long blamed Switzerland’s foreign population for all kinds of misdeeds — from taking jobs away from the Swiss and abusing the country’s welfare system, to not recycling their trash correctly.

In yet another “attack” on Switzerland’s foreign population, the SVP is now pointing accusing fingers at immigrants for the lack of housing in certain Swiss regions.

This claim has been made by a SVP deputy Michael Buffat, who said that  foreigners, including about 70,000 Ukrainian refuges currently in the country, are occupying housing, while many Swiss can’t find vacant dwellings.

Is this claim true or false?

It is correct that the Swiss rental market is experiencing a shortage, with dwellings becoming scarcer in most cantons.

In all, according to a study carried out by Raiffeisen bank, 20 of Switzerland’s 26 cantons will lack sufficient housing next year, including Geneva, Zurich, and Zug, which are among the country’s most populated and industrialised centres.

Bern, Vaud, and Graubünden are also heavily impacted.

READ MORE : Switzerland set to experience housing shortage and (even) higher rents in 2023

So this part of SVP’s  claim — that there is indeed a housing shortage in Switzerland — can’t be disputed.

Yes, but are immigrants really responsible for this situation?

The situation is much more complex. In fact, there are several reasons why housing is becoming scarce across the country. One is the increase in construction costs, which has slowed down activity in the sector.

Another is that Switzerland is a small country and building land is becoming increasingly scarce.

Immigrants can’t be blamed for either of these phenomena.

As far as foreigners are concerned, SVP’s claim is only partially true.

“Switzerland has been in a situation of uninterrupted demographic growth for several decades, and this is explained in particular by the arrival of young migrants, who also contribute to the Swiss birth rate,” according to Philippe Wanner, professor at the Institute of Demography and Social Economics at the University of Geneva.

However, this is not the full picture.

In a direct response to Buffat’s accusation, the government pointed out that immigrants usually occupy less housing space than the Swiss — in other words, the type of apartments they are looking for don’t compete with those that the permanent population favours.

Specifically, based on data from 2021, the “average living area of a Swiss household was 52.2 square metres, while that of a household of foreign nationality was 37.6 square meters”, the Swiss government said.

“As for Ukrainians, these refugees use much less space than Swiss people, because they often do not live in their own apartment, but are placed in dwellings occupied by people established in Switzerland or in collective housing.”

READ MORE: How foreigners are changing Switzerland

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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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