Ultimate Blogging Challenge January 2026 - Housing Shortage in Switzerland

Photo by Karolina Grabowska www.kaboompics.com

Something has been on my mind that I’d like to share. I watched a documentary about two Zurich neighbourhoods — one in Altstetten owned by the Halter family, and the infamous Sugus apartment complex near the main station, owned by the Bachmann family.

The colourful apartment blocks near Zurich main station are nicknamed “Sugus” because the buildings’ bright, candy-like colours resemble the Sugus chewy candies that were once popular in Switzerland.

Photo Credit: Keystone-SDA

I don’t have a picture of the buildings, but I mentioned this neighbourhood in a former post because this piece of street art can be found there:

The buildings were originally built by “the Grampa” Leopold Bachmann for blue-collar workers. Now his grandchildren, especially Regina Bachmann, seem more interested in profit than people.

She gave notice to 104 tenants, claiming the buildings needed renovation. The residents, who paid around one-third less than the local average, were baffled, because the apartments were in good condition. They fought back, and the courts agreed the mass terminations were unfair. In fact, some notices have now been declared invalid, and the move-out date has been postponed, but the dispute is not yet fully resolved.

What really bothered me was what happened to the now-empty apartments (some people moved out because they were scared of ending up on the street): she furnished them and put them on Airbnb for CHF 11,000 a month. That’s USD 14k - that's not renovation, that’s profiteering in a city where affordable housing is already nearly impossible to find.

The story in Altstetten is similar, but on a larger scale. Over 300 termination notices affected more than 700 people, including many foreigners who, simply because of their origin, find it difficult to secure an apartment, let alone an affordable one, even though both parents work. The entire neighbourhood will be demolished, and rents in the new buildings will be considerably higher.

Unlike the Sugus buildings, these apartment blocks were no longer in good condition. A tenant who had lived there for around 40 years said, “We’re sitting here in the yard now, but I can tell you that in the apartments, with the windows closed, you can hear every word of our conversation.”

The owner, you have to hand it to him, had the courage to appear for a TV interview.

When asked about the conditions, he claimed it couldn’t be that bad, otherwise people would have moved out long ago. He insisted all the buildings were properly maintained and the windows were “functional,” so replacement wasn’t necessary.

“We are not the state,” he added, “we are a profit-oriented company.”

His company, and many others like it, including institutional investors such as pension funds, are clearly profiting. But where are the profits going? Pension benefits are steadily declining. That’s a topic for another day, but I have a lot to say about the pension situation in Switzerland.

Back to the real estate mogul: if he were smart, he would mention that his company employs 400 people nationwide and pays significant taxes, one would assume. 

More than ten years ago, the people of Zurich voted on Section 49b of the cantonal planning and building law. Based on this, a minimum proportion of affordable housing would be required at the municipal level in the future. This also applies to site developments.

After all this time, the city council still seems unable to agree on what the minimum proportion should be. In the meantime, construction continues apace and rents remain high.

Although Switzerland covers 41,285 km² (roughly 16,000 square miles), much of that is mountains, glaciers, and forest. Only about 8% is built-up land, which helps explain why housing is so scarce in cities like Zurich.

Land is a resource, a valuable commodity. For some, it means a roof over their heads; for others, it is a source of income.

Because no additional building land is available, densification is the only option. However, this also leads to an increase in social problems. 

Switzerland’s population is growing steadily, primarily due to immigration, which accounts for over 90% of population growth. They all need a place to stay.

Older people are staying healthy longer and living longer, remaining in their homes, especially since retirement homes are too expensive.

The continuing rise in divorce rates and the need for two homes per family are also contributing to the housing shortage.

Even if a fair law could be implemented across Switzerland, it would take far too long, the crisis is acute and is not improving.

How can this be resolved? I don’t have the answer. Do you?