In 2023, the Swiss population was growing twice as much as in 2022, and the last survey showed a significant decline in the dwelling vacancy rate. Housing production has declined in recent years. Heating oil is the main energy source for heating in buildings built before 2001, whereas less than 2% of buildings built since 2011 are heated by oil.

The Swiss population is growing: Historically high net migration in 2023

On 31 December 2023, the permanent resident population in Switzerland was 8,960,800, compared to 8,815,400 in the previous year (+145,400 people; +1.6%). This is almost twice as much as in 2022 (+0.9%), meaning that growth was more pronounced than at any time since the early 1960s. Without the people from Ukraine, the population would have increased by 1.0%.

After slowing down during the pandemic years, immigration picked up again in 2022 and continued to increase in 2023. The increase is partly due to the fact that people from Ukraine have been part of the permanent resident population since 2023. In 2023, a total of 263,800 people immigrated (+38.2% compared to 2022), of which 22,100 were Swiss nationals and 241,700 were foreign nationals. Of these, 53,100 immigrants were persons with protection status S from Ukraine (20.1% of all immigrants).

Emigration, on the other hand, fell slightly. 121,600 people left Switzerland (30,700 Swiss nationals and 90,900 foreign nationals). This corresponds to a decrease of 0.5% compared to the previous year. As a result, net migration (difference between immigration and emigration) rose from 68 800 in 2022 to 142 300 in 2023 (+106.9%). This balance explains around 95% of the population growth in 2023 (compared to 90% in the previous year). Never before has net migration been so high in Switzerland.

The reference scenario describes the growth that seems most plausible in the coming decade and is expecting a further increase in the permanent resident population up until 2050 to approximately 10.4 million people.

Third consecutive decline in vacancy

The vacancy rate fell by 0.16 percentage points from 1.31% to 1.15% within a year. In the cantonal comparison, the lowest vacancy rates were 0.42% in the cantons of Zug and Geneva. In the canton of Obwalden (0.43%), the ratio was also below half a percent on 1 June 2023. In 21 cantons, vacancy rates decreased compared to the previous year and only increased in five cantons. The canton of Jura (+0.21 percentage points to 3.17%) showed the largest increase and thus also the highest vacancy rate in Switzerland. Vacancy rates above the 2 percent mark were also recorded in the cantons of Solothurn (2.39%) and Ticino (2.17%).

In absolute terms, minus 6,731 vacant apartments were offered compared to the previous year’s reference date. Vacancy in the cantons of Aargau (-918 units), Bern (-816 units) and Ticino (-773 units) has fallen the most. As in the previous year, the highest amount of vacant apartments (7,817) were counted in the canton of Bern. More vacancies than a year earlier were registered in the cantons of Geneva (+130 units), Lucerne (+124 units), Jura (+100 units), Zug (+58 units), Nidwalden (+16 units) and Basel-Landschaft (+6 units).

On June 1, 2023, a total of 44,213 unoccupied apartments were offered for rent. This corresponds to a year-on-year decline of 8,343 rental apartments or a decrease of 16%. Likewise, the offer of vacant new apartments (not older than 2 years) decreased. Only 4,131 newly built apartments were offered on the market on the reporting date, 732 apartments or 15% less than a year earlier.

Compared to June 1, 2022, the vacant housing stock decreased mainly in 1 to 3-room apartments (between -15% and -16%). The offer of vacant 4-room apartments also became smaller (-10%). In contrast, more large apartments (5 and more rooms) were offered on the reporting date, 3% more for the 5-room apartments and a striking 18% for apartments with six or more rooms.

Construction and housing

In 2022, the Swiss housing stock comprised 4.7 million dwellings. Of these, one million were single-family houses. Switzerland's housing stock is mainly made up of medium-size properties, half of which have three or four rooms. The size of the housing stock has risen by almost 50% since 1990.

Switzerland is a country of tenants: the vast majority of households live in rented accommodation (2.4 million). In contrast, just over a third of households live in their own home. This share has been declining slightly in recent years. In 2022, there was an average of 2,2 persons per dwelling. In 1970 this figure was 2,9.

In 2022, the average monthly rent for three and four-room dwellings was CHF 1’478. Average monthly rent was highest in the cantons of Zug, Zurich and Schwyz. The most inexpensive rents were found in the cantons of Jura and Neuchâtel. Rents also vary widely depending on the location and characteristics of the property.

Housing construction in Switzerland peaked between 2013 and 2018: during this period, an average of 50,000 new dwellings were built every year. A reversal of trends has been seen in recent years. In 2021, 10,051 new residential buildings were counted in the survey, providing a total of 45,307 new dwellings.

More than a third (39%) of buildings were built in the past 40 years, i.e. after 1980. Whereas 45% of single-family houses have been built since 1981, only 37% of multi-family buildings were built after this year and 20% of buildings in other categories (buildings not for solely residential purposes). The building stock in the canton of Fribourg is exceptionally recent with 28% of buildings built in the 21st century. In contrast, only 5% of buildings were built in this period in the canton of Basel-Stadt.

Heating system and energy sources

Although the use of heating oil has declined constantly over the past 40 years, in 2022, almost 56.8% of residential buildings in Switzerland were heated by fossil fuels (heating oil and gas). 18.5% of buildings were connected to a heat pump, a proportion that is rising sharply. 11.9% and 7.9% of buildings are heated by wood and electricity respectively. Almost two-thirds of buildings have a boiler. These usually run on heating oil, gas or wood.

Heating oil is the main energy source for heating in buildings built before 2001, whereas less than 2% of buildings built since 2011 are heated by oil. Heat pumps are used in almost three-quarters of buildings built since 2011 but in less than 7% of buildings built before 1971.

Close to 40% of the population have oil heating. The share of people heating with gas or heat pump is 25.0% and 17.7% respectively. In Switzerland, in 2022, hot water was produced by electricity in 30.1% of residential buildings. With a 29.2% share, oil is the second energy source for hot water.

Ownership structure

In Switzerland in 2022, two thirds (67.0%) of residential buildings were owned by individuals. Legal persons owned more than one in ten of these buildings (11.9%). Communities, a term that refers to simple partnerships, heirships, communities of property or joint ownership, owned 14.4% of real estate.

The structure of property owners varies by building category. In 2022, 75.3% of single-family houses were owned by individuals, and 18.2% by communities (mainly by simple partnerships, but also heirships, communities of property and joint ownership). More than half (55.8%) of multi-family houses were privately owned and 20.3% were owned by legal persons. Older buildings tend to be more often owned by individuals than newer buildings.

More information about the housing market in Switzerland can be found here:

https://www.jll.ch/en/trends-and-insights/research/snapshot-residential