In a rare show of cross-party unity, the Swiss Parliament has passed an emergency housing affordability bill aimed at addressing the deepening rental crisis in the country’s major cities. The legislation, approved by 142 votes to 51 in the National Council, introduces a series of measures designed to curb skyrocketing rents and increase the supply of affordable housing across Switzerland.
Immediate Measures and Long-Term Strategy
The bill includes an immediate two-year cap on rent increases in municipalities where vacancy rates fall below 1.5 percent, effectively covering Zurich, Geneva, Basel, Lausanne, and Bern. Landlords in these areas will be restricted to annual increases of no more than 1 percent above the reference interest rate, a significant tightening from current regulations that have allowed some tenants to face hikes of 10 percent or more in a single year.
“Families in our cities are being forced to choose between paying rent and meeting basic needs. This bill offers immediate relief while we build the longer-term solutions our housing market desperately requires,” said National Councillor Priska Seiler Graf, one of the bill’s principal sponsors.
The longer-term provisions of the bill are equally ambitious. A new federal fund of CHF 1.5 billion will be established to support the construction of cooperative and non-profit housing, with a target of 10,000 new affordable units per year over the next decade. The bill also streamlines planning and zoning regulations to reduce construction timelines, which currently average four to seven years from proposal to occupancy in major cities.
Industry Response and Implementation
The Swiss Real Estate Association has criticized the rent cap provisions, arguing they will discourage investment in maintenance and new construction. However, tenant advocacy groups have praised the bill as overdue, noting that average rents in Zurich have risen by 32 percent over the past decade while wages have increased by just 8 percent. The association of Swiss tenants described the vote as a historic victory for renters.
The bill now moves to the Council of States for consideration, where it is expected to face some amendments but ultimately pass. Implementation of the rent cap provisions is anticipated to begin within 90 days of final passage, while the construction fund will require several months of regulatory development before disbursements can commence.
