Which Swiss canton offers the most affordable homes for purchase?

Though “affordable” and “Switzerland” may not seem like a natural combination, it’s helpful to know which regions in the country are more budget-friendly. A recent report from the real estate agency and consulting firm Wüest Partner has identified the areas in Switzerland where you can find the most reasonably priced houses for sale.

Switzerland has the lowest rate of homeownership in Europe

According to the report, which was shared with Watson, it’s quite uncommon for people in Switzerland to own their homes. The data shows that the percentage of homeowners in this alpine nation has dropped from 38.4% in 2015 to 36.3% in 2021, making it the lowest rate of home ownership in Europe.

Despite this, approximately 46% of residents aspire to buy property in the future. However, experts have noted that, even with recent drops in housing prices, most of the country remains unaffordable due to the high costs. Wüest Partner attributes these high prices to a simple fact: “Fewer properties are entering the market than new households are being created,” leading to increased demand and the risk of a housing bubble.

To gauge the disparity between people’s affordability and house prices, the company analyzed the average income of a two-person household in each Swiss canton, considering both partners working and obtaining a mortgage. They then compared this total to the average house prices in the region. Nationally, they found that Swiss homes are 9% too expensive for an average family to buy, but this percentage varies significantly by region.

Zug has the least affordable housing in Switzerland

For the year 2023, Zug was ranked as having the most unaffordable housing in Switzerland. The average home price was 49% higher than what a working couple with a mortgage could afford, and for a single-family house, this figure rose to 63%. This may not come as a surprise, as Zug is often considered one of the best but also one of the most expensive places to live in Switzerland.

The city council of Geneva took second place in the rankings, with properties costing an average of 40% more than what a working couple could afford. Nidwalden (37%), Graubünden (35%), and Basel-Stadt (33%) rounded out the top five.

The least affordable places to purchase a house in Switzerland

In summary, these are the least affordable places to buy a house in Switzerland:

1. Zug (+49)
2. Geneva (+40)
3. Nidwalden (+37)
4. Graubünden (+35)
5. Basel-Stadt (+33)
6. =6. Zurich (+30)  &  =6. Schwyz (+30)

7. Vaud (+29)
8. Uri (+24)
9. Obwalden (+22)

Geographically, the least affordable homes can be found in the Engadine Valley in the mountains and the areas around Lake Zurich, Zug, Lucerne, and Geneva.

Where is the most affordable place to buy a home in Switzerland?

On the contrary, Canton Jura was identified as the most affordable place to purchase a home in Switzerland. There, house prices are 37% lower than the maximum amount that an average working couple can afford.

Jura was followed by Solothurn, Neuchâtel, and Glarus, with prices being 17, 14, and 11% lower, respectively. However, it’s important to note that only seven cantons were considered to have affordable housing, and, among them, only Jura and Glarus were found to have affordable single-family houses.

Most economical places to buy property in Switzerland

In summary, these are the most economical places to buy a home in Switzerland:

1. Jura (-37)
2. Solothurn (-17)
3. Neuchâtel (-14)
4. Glarus (-11)
5. Valais (-9)
6. Schaffhausen (-8)
7. Appenzell Ausserrhoden (-4)
8. Bern (0)
9. Aargau (+2)
10. Gallen (+3)

Wüest Partner believes that the most viable solution to make properties more affordable is to construct more homes. However, they acknowledge that the primary obstacle lies in the substantial cost of acquiring land for construction. Furthermore, they estimate that, without any changes in legal or planning regulations, it is possible to create up to 1 million additional homes with 120 square meters of living space each by expanding and upgrading the existing housing stock in the country.