Behavioral Changes Driven by Housing Shortage
The housing shortage in Switzerland is significantly influencing residents’ behavior, particularly by reducing relocation rates. According to the Swiss Federal Statistical Office (OFS), the relocation rate dropped to 9.5% in 2022, representing 701,000 people, which is 68,200 fewer moves compared to 2020 (Figure 1).
This decline is especially noticeable for moves within the same municipality or canton, while inter-cantonal relocations are on the rise.
This trend contrasts with the rise of remote work, which has encouraged many households to seek larger or more affordable housing, even in more distant locations.
Increase in Average Occupancy Duration
The decline in relocation rates has been accompanied by a rise in the average length of residence, particularly in rental properties. Nationally, the average occupancy duration is now 8.5 years.
In Geneva, it reached a record 14 years in 2024, an increase of 7 months since 2019. Central Switzerland and the Nyon region have also seen an increase of 2 to 3 years. Conversely, in the Lugano region, the average occupancy duration has decreased by nearly 2 years.
Impact of Tenancy Law and Rental Costs
Tenancy law plays a key role in this trend. Rents for existing lease contracts are often indexed to the reference interest rate, which has declined for several years. This has allowed tenants to benefit from stable or even decreasing rents.
However, newly listed properties come with significantly higher rents due to limited supply. As a result, moving often leads to a substantial cost increase for comparable housing, discouraging many tenants from relocating.
High Relocation Rates Despite Long Occupancy
According to an April 2024 analysis, 28% of households would see their housing costs exceed one-third of their gross income after relocating. This issue is particularly pronounced in cantons such as Geneva, Zug, Zurich, Vaud, and Ticino.
As a result, cities like Geneva, Lausanne, and Zug experience a combination of long lease durations and high relocation rates, highlighting the challenges young people and mobile households face in finding affordable housing alternatives.
Search for Affordable Housing: Longer Moving Distances
The search for affordable housing is driving households further away from urban centers. In 2024, the average relocation distance increased by 9.2%, reaching 13.7 km.
- Young adults (18–25 years old) were the most affected, with a 12.3% increase in relocation distances.
- Older households moved an average of 11.8 km, also experiencing a rise in relocation distances.
New Migration Dynamics
Internal migration patterns are shifting. Residents of major cities are increasingly moving to smaller and mid-sized urban centers, their suburbs, and peripheral areas. At the same time, new foreign arrivals are now favoring these same areas over major economic hubs. As a result, migration flows toward large cities are declining.
Cantonal Winners and Losers
Intercantonal migration trends reveal distinct patterns. The cantons of Zurich, Vaud, Zug, and both Basel regions are experiencing population losses, while Aargau, Solothurn, Lucerne, and Valais are seeing an increase in arrivals.
