Liechtenstein

Liechtenstein’s housing market remains robust but lacks official, transparent statistics on prices, rents, or home ownership rates—there are no public sources citing what percentage of people rent versus own their homes. What data exists are estimates. Over the past 15 years, nominal house prices have more than tripled—up almost 273%, the highest in Europe—and even after inflation, prices are up over 138% in the last decade. This rapid appreciation suggests a challenging market for new buyers.

Rental yields remain low, averaging around 3%, with median prices to buy an apartment estimated at roughly €8,400 per square meter and median rents about €18 per square meter per month, though specifics may vary by location and property type. Availability appears tight, particularly for rentals, with occupancy rates in short-term markets sometimes below 50%.

Publicly owned and social housing play a minor but important role. The Liechtenstein Housing Cooperative aims to provide affordable, long-term housing for families, the elderly, and those with disabilities, operating across all municipalities. However, detailed statistics on the proportion of publicly owned housing are unavailable. Social housing is defined as state-subsidized accommodation for those unable to secure housing privately, managed by non-profit entities; it is not identical to general public housing, which is broader and may include non-subsidized state-owned properties. Both are small in share, with the private market dominating. Regulatory restrictions on foreign buyers and domestic needs-based criteria further shape the market, reinforcing exclusivity and upward price pressure.

Liechtenstein faces a pronounced housing crisis, primarily driven by sustained demand, limited land, and the exceptionally rapid increase in property prices. Over the last 15 years, nominal house prices have more than tripled, making housing among the most expensive in Europe. The cost to buy an apartment averages around €8,400 per square meter, and typical rents reach €18 per square meter monthly, making both home ownership and renting unaffordable for many. Rental yields are low and the number of available rental units is limited, with tight supply disproportionately affecting newcomers, lower-income residents, and younger people. Although broad homelessness is rare due to Liechtenstein’s social safety nets, the private rental market is highly exclusive, and even middle-class families or individuals can struggle to secure housing suitable to their needs or income. Households with low or unstable income, single parents, young adults entering the market, the elderly, and people with disabilities are especially vulnerable to rising costs and tight availability. Refugees and other newcomers may also face particular challenges, though the numbers are relatively small. The housing burden is further intensified by strict regulatory controls on foreign buyers and allocation based on social need, reinforcing limited market access and upward price pressure—making housing one of the most acute and persistent social issues in the country.

Liechtenstein’s national government approaches affordable and sustainable housing mainly through regulation, targeted subsidies, and support for special needs, but does not set explicit broad sector targets or operate large-scale public housing programs. Concrete measures include strict borrower-based lending rules introduced since 2024, such as loan-to-value limits, mandatory amortization, and income-related affordability tests for mortgages. These measures aim to prevent household over-indebtedness and moderate price inflation, while banks now report new loan data to improve transparency.

Subsidies are directed primarily to social housing projects for groups unable to secure housing on the open market, managed by non-profit domestic entities with state tax exemption. Government funding supports the creation and renovation of energy-efficient and solar-powered housing, with recent earmarked spending of about €17 million for such projects. Additional resources target housing for the elderly, people with disabilities, and refugees. The government also provides significant financial support to care facilities and subsidizes associations focused on assisted and sheltered living to foster more independent living for vulnerable populations.

While specific communicated targets for expansion or affordability are not public, ongoing reforms focus on data collection for real estate and rental price indexes with the aim of addressing market gaps. Overall, direct government action centers on regulation, subsidies for energy efficiency, and targeted co-financing for non-profit housing and institutional care, rather than direct public sector development.

Housing cooperatives play a marginal role in Liechtenstein’s housing landscape. The principal entity, the Liechtenstein Housing Cooperative, provides affordable rental units—just 31 apartments—which are reserved for qualifying families and adapted as household size changes. Cooperative members acquire refundable shares, and pay rents about 20% lower than the prevailing market rate. However, the cooperative’s overall market presence is negligible and currently stable, as there is no significant unmet demand for cooperative housing, nor new projects planned.

There are no published statistics indicating the share of cooperative housing out of the country’s roughly 22,215 dwellings. Cooperatives are included in the broader rental sector, which has grown from 47% to 50% of housing units over the past decade, but make up only a small fraction of this segment.

Government policy encourages affordable, energy-efficient housing via targeted subsidies and regulations—most notably, lending restrictions and support for social housing and special needs accommodation. While cooperatives benefit from legal recognition and some support, no distinct, large-scale national programs or targets exist to expand cooperative housing. Current sector dynamics do not suggest notable growth, and cooperatives remain a minor player within a strongly privately dominated market.