The housing vacancy rate in every region of the canton of Zurich has remained below 1% for the second consecutive year. The pressure on the housing market continues.
Since 2021, residential construction activity in the canton has been almost consistently low. The few new apartments that came onto the market were in high demand.
The highest vacancy rates were recorded in the Zurich Oberland at 0.95% and in the area around Pfannenstiel at 0.90%. Vacancy rates increased slightly in the cities of Zurich and Winterthur, but remained below their 10-year averages at 0.11% and 0.20%, respectively.
Municipalities reported that around 600 newly built homes were vacant this year. These properties were constructed in 2024 or later, and the figure represents an increase of 120 compared with the previous year.
Despite that rise, the vacancy rate for new homes remained low at 3.02%. A decade ago, the rate was above 6%. Much of this year’s increase was recorded in the city of Zurich and the municipality of Regensdorf, both of which have seen relatively high construction activity in recent years.
Across the canton, roughly equal numbers of municipalities reported increases and decreases in vacancies among new homes.
Read More: Lunar Eclipse To Appear Over Switzerland On 28 August
Zurich Housing Vacancy Crisis: Rental Supply Especially Tight
Apart from two-room apartments, vacancy rates have increased for all apartment sizes within the past year.
More than 75% of vacant homes in the canton are rental properties. In fact, most households in Zurich rent rather than own their homes.
Compared with the previous year, vacancies rose by 10% for rental homes and by 9% for owner-occupied properties. Over a longer period, however, rental vacancies remain nearly 30% below their 10-year average, while vacancies among owner-occupied homes are around 5% above the long-term average.
Demand For Houses Remains Strong
Single-family homes remain one of the most sought-after types of housing in Zurich. Around 700 detached houses were vacant, corresponding to a vacancy rate of 0.58%.
Although the rate remains low, it has shown a slight upward trend since 2023, returning towards levels seen before the coronavirus pandemic. Demand for homes with gardens was especially strong during the pandemic.
The vacancy rate for all other homes currently stands at 0.51%, slightly below the rate for single-family houses.
With the exception of two-room apartments, vacancy rates rose across all apartment sizes over the past year. The changes were small, however, leaving the overall situation largely unchanged.
Apartments with six or more rooms now have the highest vacancy rate, at 0.60%, followed by five-room apartments at 0.53%. This is unusual because larger homes, including many single-family houses, traditionally have the lowest vacancy rates.
Possible explanations include declining demand for family-sized homes as birth rates fall, high housing costs that make larger apartments less affordable and the gradual movement of the baby-boomer generation out of family homes. Officials said it remains too early to determine whether the development marks a lasting trend or a temporary fluctuation.
Read More: Migros Issues Another Product Recall As Chicken Date Error Raises Safety Concerns – Helvetica Times
Construction Could Pick Up
The low vacancy rate indicates that demand for housing continues to exceed supply, even though the labour market has weakened over the past two years and population growth has remained below 1%.
The canton said the limited increase in vacancies is likely linked primarily to subdued construction activity since 2021. There are now signs that building activity could increase. Higher insurance volumes for ongoing construction projects and a large number of demolitions during the first half of 2026 may point to more replacement housing entering the market.
Officials cautioned that a lasting improvement would require construction to remain above recent levels for an extended period.
Swiss Voters To Decide On Neutrality In September 2026
