The Zurich Chamber of Commerce has released a new study by Sotomo regarding housing dynamics in Swiss urban centers, concluding that the phenomenon of displacement is overestimated and that new construction serves to stabilize neighborhoods. The findings suggest that increasing housing supply is more effective than increased regulation.
The release of the data comes as the Canton of Zurich prepares for a vote on June 14, 2026, concerning three housing policy proposals. Among these is a housing initiative backed by the Greens, SP, and AL, which seeks significantly stronger state intervention in the housing market.
To counter this move, the Zurich Chamber of Commerce established the “Fürschi Züri” initiative. Director Raphael Tschanz stated that the goal is to provide a “factual contribution” to the discussion, utilizing publicly available figures to create a baseline for a topic that is often discussed emotionally.
Urban Stability and the Displacement Debate
The Sotomo study, which utilized data from the Federal Statistical Office (BFS) and the STATPOP population register, indicates that residents in major Swiss urban areas are more sedentary than commonly believed. Move-out rates have remained largely stable since 2016, with Zurich seeing a slight decrease in its move-out rate.
Study author Michael Hermann noted that the existing population remains very stable. According to Hermann, the housing market is more heavily influenced by those who move into the city and subsequently move away, rather than long-term residents being forced out.
Comparing Zurich and Geneva
The study highlights a stark contrast between the freer conditions for builders in Zurich and the stricter regulations in Geneva. In Zurich, 16,029 people in the city and 28,498 in the agglomeration were affected by empty terminations between 2016 and 2024. In contrast, Geneva saw 411 such cases in the city and 1,721 in the agglomeration during the same period.
Despite these numbers, the study asserts that empty terminations in Zurich have not increased over the years. Hermann stated that those forced to move often end up with more living space per person, and approximately 30 percent remain within the same neighborhood.
However, the transition often involves a significant financial jump. While rents for these individuals often remain below the city average, the increase per square meter can be a substantial burden for households with structurally lower incomes who previously benefited from very cheap, existing leases.
Housing Needs Across Generations
The research also identified a mismatch in housing size across different age groups. While older residents tend to have too much space—often living alone or as a couple in large apartments—younger people generally have too little.
This shortage is particularly acute for families with children. In Zurich, 23 percent of families with children under 15 live in apartments that are too little. In Geneva, this figure rises to 42 percent. Michael Hermann noted that these conditions in Geneva lead to significantly worse learning environments for children.
Looking Ahead
As the June 14 vote approaches, the results of the referendum could determine whether the Canton of Zurich adopts a more interventionist approach to housing or maintains its current market-oriented trajectory. If the “Wohnungsinitiative” is rejected, the current emphasis on new construction as a stabilizing force is likely to continue.
Frequently Asked Questions
What is the main conclusion of the Sotomo study regarding new construction?
The study concludes that new buildings stabilize neighborhoods and that increasing the supply of housing is more helpful than increasing regulation.
How does the housing situation for families differ between Zurich and Geneva?
The problem of undersized housing is more severe in Geneva, where 42 percent of families with children under 15 live in too-small apartments, compared to 23 percent in Zurich.
Are empty terminations increasing in the city of Zurich?
No. According to the study and author Michael Hermann, the number of empty terminations in Zurich has not increased over the years.
Should the state intervene more heavily in the housing market?
