When the housing debate descends into denial, it becomes urgent to establish the facts. Behind reassuring rhetoric and convenient scapegoats, a reality is asserting itself: demographic pressure, scarcity of supply, and structural blockages shape the market far more than slogans. Refusing to see this is perpetuating the crisis. Here's why.
Sunday, 12 April
For Carlo Sommaruga, president of ASLOCA and a socialist member of the Council of States, it would all be clear: the surge in rents in Switzerland would not in no way linked to immigration, but solely to the greed of investors. A simple explanation. Too simple. And above all, profoundly misleading.
Because when it comes to housing, ignoring the law of supply and demand isn't analysis: it's wilful blindness.
The fundamental reality: an explosion in demand
Since the introduction of free movement in 2002, Switzerland has experienced unprecedented population growth. Each year, tens of thousands of additional people need housing.
In 2023, over 75,000 people still moved to Switzerland.
Every arrival implies an immediate need: accommodation.
To deny that this massive pressure on demand influences rents is to deny elementary economic common sense.
Increased demand + limited supply = higher prices.
Even in the world's most regulated markets, this law remains unavoidable.
A structurally constrained offer
Unlike what Sommaruga suggests, the problem does not stem from a lack of «goodwill» from investors, but from very concrete constraints:
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Scarcity of land, particularly in urban centres (Geneva, Zurich)
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Long and complex authorisation procedures.
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Multiplication of standards (energy, environmental, technical)
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Systematic opposition to densification
Result The supply is not keeping up with the demand.
And when supply is rigid, any increase in population translates mechanically into a rise in rents.
The myth of the “organised scarcity”
To claim that the shortage would be «organised» to maximise profits is more of a slogan than an analysis.
Why?
Because:
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An investor makes more in a fluid market with rotation and volume
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Construction remains profitable in the long term despite cycles
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The property vacancy rate existed in Switzerland… and rents stagnated or even fell during these periods
If there is a shortage, it is first Structural and political, not conspiratorial.
The real role of rates: one factor among others
Yes, interest rates influence construction. But to make The main cause is reducing.
Even during a period of low interest rates (2015–2021):
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The construction was not sufficient to absorb demographic growth
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Rental tensions remained high in attractive areas
Why? Because the determining variable remained… population pressure.
The counter-productivity of rent control
The proposed solution – capping and controlling rents – is politically appealing, but economically risky.
Wherever it has been applied massively:
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reduction in available supply
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Reduced incentive to build
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Long-term decline of the housing stock
By trying to protect short-term tenants, we are worsening the medium-term shortage.
Airbnb: a marginal factor, not a central one
Short-term rentals are regularly in the spotlight. But their impact remains limited to certain tourist areas.
They can in no way explain:
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national tension
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nor the general rise in rents
Designating them as the main cause primarily… avoids the real debate.
The heart of the problem: a Switzerland under demographic pressure
The truth is simple:
Switzerland is building too little in relation to the number of new arrivals.
And as long as this issue is not faced head-on, all other measures will remain cosmetic.
Conclusion: putting the facts back at the centre
By refusing to acknowledge the role of migratory pressure, Carlo Sommaruga diverts the debate from the real causes.
Yes, abuses exist. Yes, certain practices need to be controlled.
But no, we won't solve a housing crisis by denying its main driver.
Housing is no exception to the reality:
When the population increases faster than available housing, rents rise.
Everything else is just talk.