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What has happened? Real estate agent and consultancy company Wüest Partner has found out which parts of Switzerland have the most affordable housing.
Context. Switzerland has the lowest home ownership rate in Europe. The report says the proportion of the Alpine country's residents who own property has fallen from 38.4% in 2015 to 36.3% in 2021.
Despite this fact, approximately 46% of residents hope to buy property in the future. However, experts noted that, despite the recent drop in house prices, most of the housing in the country is inaccessible to buyers due to its high cost. Wüest Partner explains it simply: “Fewer properties are coming onto the market than new households are being created.”
How did they count? To see how big the gap is between what people can afford and house prices, the company analyzed the average earnings of a two-person household in each Swiss canton and how much they would be able to afford if they both worked and took out a mortgage.
They then compared the total to average house prices in the area. Nationally, they found that Swiss homes are 9% too expensive for the average family to purchade, but this varies greatly by canton.
The rating. In 2023, Zug is recognized as the most unaffordable city in terms of housing costs in Switzerland. The average home price was 49% higher than what could be afforded by two working people with a mortgage - for a single-family house, this rate rose to 63%.
On the contrary, the canton of Jura turned out to be the most affordable in Switzerland. There, housing prices are 37% below the maximum that can be afforded by an average working couple.
Source: I am Expat
Photo by Artiom Vallat on Unsplash
