Zurich

In Zurich, approximately 74% of residents rent their homes, while around 26% are homeowners—making Zurich one of the most rental-oriented cities in Europe. The median price to buy an apartment in Zurich is around CHF 18,909–21,110 per square meter, which converts to roughly EUR 19,500–21,800 per sqm as of mid-2025. The median rent for new contracts in prime urban areas is about CHF 34–36 per sqm per month, or EUR 35–37 per sqm per month. The housing market is extremely tight, with a vacancy rate near 0.1%, and prices are rising nearly 4–12% year-on-year.

Publicly owned and non-profit cooperative housing play a major role; about 25% of Zurich’s housing is owned by cooperatives or public institutions. These cooperatives operate on a non-profit basis and typically offer rents approximately EUR 800 per month less than private market apartments. In Zurich, public housing (Städtische Wohnungen or Gemeinnütziger Wohnungsbau) is not entirely synonymous with social housing. Public and cooperative housing serves a wide range of incomes and is focused on affordability, stability, and community—not exclusively targeting the lowest-earning households as "social housing" might elsewhere. This system is a key element in Zurich’s approach to urban affordability and stability.

Zurich is experiencing one of the most severe housing crises in Europe, marked by an ultra-low apartment vacancy rate of only 0.07%—the lowest in Switzerland and likely in the entire Western world. The city has seen apartment prices rise by 4.46% and single-family home prices by just over 4% year-on-year as of mid-2025, driven by a chronic shortage of supply while demand remains constantly high. Rents for new tenancies in prime city areas have surged with recent years showing double-digit increases; the median annual asking rent in Zurich reached about EUR 426 per square meter in early 2025. Despite a nearly 24% increase in building permits, new construction has not kept up with the pace of population growth due mostly to high levels of immigration, economic attractiveness, and regulatory bottlenecks.

The crisis notably impacts a wide segment of the population: middle-income households are particularly squeezed—facing high competition and upward price pressure—while lower-income groups are at an even greater disadvantage and risk potential displacement. Students, young professionals, families, and immigrants all face acute difficulties finding affordable and adequate housing. Queues of hundreds for a single apartment showing are common, and social tensions have led to protests, especially when long-term tenants face eviction for redevelopment. The shortage, intensified by both domestic and international migration, means Zurich’s housing problem is now a citywide concern, affecting most renter groups and driving fears of further exclusion and affordability loss.

Zurich’s city administration is pursuing ambitious targets to address affordable and sustainable housing. The most recent, widely communicated goal is to increase the share of non-profit housing from about 25% to one-third of all rental apartments by 2050. To realize this, Zurich is activating several concrete programs and investing heavily: since 2023, the city has launched a dedicated €280 million housing fund, with a further €300 million for 2023–2024, focused on purchasing land, supporting construction, and renovating cooperative and municipal apartments. The city uses an active land policy, acquiring sites then offering long-term leases (60–100 years) to cooperatives and non-profit developers, rather than selling public land.

Inclusionary zoning policies require a certain percentage of affordable units in new developments, with density bonuses provided for projects with higher proportions of affordable housing. Zurich also grants low-interest loans, loan guarantees, and financial aid to cooperatives building or rehabilitating affordable homes.

Sustainability is promoted via programs aligned with national climate goals—new builds increasingly use energy-efficient designs and sustainable materials, supported by state incentives and green mortgages. Additionally, innovative social initiatives like “Wohnen für Hilfe” match students with elderly residents, exchanging discounted rent for support. Recent regulatory changes introduce income caps and regular eligibility checks for municipal and some private affordable flats, while stricter occupancy requirements ensure fairer usage and distribution. These interlinked actions show Zurich’s commitment to expanding affordable and sustainable housing amid ongoing housing shortages and price inflation.

In Zurich, housing cooperatives are a crucial pillar of the city’s housing landscape, responsible for about 27% of all housing units—one of the highest shares among European cities. These cooperatives collectively manage over 71,000 apartments in the greater Zurich area, consistently providing rents significantly below market level and focusing on long-term affordability, social diversity, and ecological sustainability.

The sector is actively expanding in response to ongoing housing shortages and high demand. Recent years have seen an increase in new cooperative housing projects, with frequent releases of several hundred new units—especially 3- and 4-room apartments—each year. The city administration has set a strategic goal to raise the share of non-profit and cooperative housing to one-third of all rental apartments by 2050, reflecting political prioritization of this housing form.

To drive this goal, Zurich pursues several policy measures: a dedicated housing fund, large-scale public investments, provision of public land under long-term leasehold (rather than sale), inclusionary zoning rules, and subsidies or loan guarantees for non-profit developers. These policies are complemented by incentives for sustainable construction and social programs encouraging new housing forms and intergenerational projects. Current regulations also include periodic eligibility checks and occupancy rules for affordable units to maintain fair access and use. As a result, Zurich’s cooperative housing sector is dynamic, growing, and central to the city’s affordability and urban policy strategy.