More building permits in Switzerland: Is the housing market easing?
The number of building permits for new homes has risen again in Switzerland, with particularly strong growth in rental housing. A rapid easing is nevertheless unlikely, because planning, financing and construction still stand between approval and occupancy, while the population and demand for housing continue to grow.
Briefly explained
According to market data from Wüest Partner, building permits were issued for around 50,700 new homes in Switzerland in 2025. This was 6 percent more than in the previous year and the highest figure since 2018. The increase was mainly driven by rental apartments. Nevertheless, there is no sign of nationwide easing: building applications fell again in 2025, approved projects only reach the market after a delay and the vacancy rate was most recently just 1.00 percent. The most likely development is therefore a slight regional improvement rather than a rapid end to the housing shortage.
Contents
The latest figures on housing construction in Switzerland
Building permits have recovered visibly after several weak years. Wüest Partner estimates that around 50,700 new homes were approved in 2025. Compared with 2024, this represents an increase of roughly 6 percent and the highest level since 2018.
The development must, however, be considered together with other market indicators:
| Indicator | Latest figure | Assessment |
|---|---|---|
| Building permits in 2025 | Around 50,700 homes | About 6 percent more than in 2024 and the highest level since 2018. |
| Approved rental apartments | Around 21 percent more than in the previous year | The recovery is strongly concentrated in rental housing construction. |
| Building applications in 2025 | Around 11 percent fewer than in the previous year | The increase in permits may partly be temporary. |
| Vacant homes on 1 June 2025 | 48,455 homes | 3,519 fewer than in the previous year. |
| Vacancy rate in 2025 | 1.00 percent | Fifth consecutive decline and clearly below the 2020 level. |
| Population at the end of 2025 | 9,124,300 people | Increase of around 73,300 people or 0.8 percent. |
| Housing production in 2023 | Around 46,700 new homes | In 2018, the figure was still just over 53,000 homes. |
What does a building permit mean?
A building permit is the authority’s approval of a construction project. It confirms that the submitted project complies with the applicable building, planning and environmental rules under the conditions imposed.
The process usually consists of several stages:
- Analyse the site or existing property.
- Prepare the project and financing.
- Submit the building application.
- Carry out the public consultation and official assessment.
- Deal with objections and conditions.
- Issue the building permit.
- Complete detailed planning and procurement.
- Start and complete construction.
- Accept, rent or sell the homes.
A permit therefore does not automatically lead to an immediate construction start. Several years may pass between the first planning steps and occupancy in the case of large developments, site redevelopments and replacement buildings.
Building application, permit and completion compared
| Phase | What it means | Remaining uncertainty |
|---|---|---|
| Building application | A project has been submitted for approval. | Approval, conditions, objections and financing are still open. |
| Building permit | The project may in principle be realised. | Construction start, financing and full implementation remain open. |
| Construction start | The project is actually being implemented. | Construction time, costs and completion date may still change. |
| Completion | The new homes can be occupied. | The decisive question remains whether price, location and housing type match demand. |
Why the housing market will not ease immediately
The rise in permit numbers is a positive signal. For broad easing, however, more homes must be completed over a longer period than are required because of additional households, demolitions, conversions and other changes.
1. Demand continues to grow
Switzerland’s permanent resident population increased by around 73,300 people in 2025. The number of households also tends to grow faster than the population, partly because more people live alone or in smaller households.
2. Permits have a delayed effect
A permit issued today does not immediately increase the available housing supply. Homes can only be rented or sold after financing, detailed planning, construction and acceptance.
3. Not every approved home increases the housing stock on a net basis
Replacement buildings involve the demolition of existing properties and their replacement with larger developments. The new building may contain more homes, but the old homes disappear temporarily during construction.
4. New homes are not always built where shortages are greatest
Additional construction in a region with moderate demand may ease the market locally. In Zurich, Geneva, Zug and other particularly tight regions, however, new homes may be absorbed quickly.
5. The price segment is decisive
A large number of expensive new-build apartments only helps low- and middle-income households to a limited extent. Genuine easing requires enough suitable homes in different sizes and price ranges.
The recovery is concentrated in rental housing
The strongest increase in approvals in 2025 was for rental apartments. According to Wüest Partner, around 21 percent more rental homes were approved than in the previous year.
There are several reasons:
- Demand for rental housing remains high.
- Lower financing costs improve the economics of apartment buildings.
- Rising asking rents increase the expected returns on new projects.
- Institutional investors seek long-term and relatively stable rental income.
- Apartment buildings allow denser use of scarce land.
- Urban densification is more common than expansion with detached houses.
More approved rental homes can reduce supply pressure in the medium term. The decisive question is whether the projects are actually built and whether the homes are affordable for local households.
Home ownership remains scarce despite higher overall figures
The rise in total building permits should not be confused with a boom in owner-occupied housing. According to UBS, only around 5,100 detached houses and 11,200 owner-occupied apartments were approved in 2025. The number of approved homes for ownership therefore remained well below previous levels.
New construction of owner-occupied housing is constrained by:
- scarce and expensive building land,
- high land and construction costs,
- densification in favour of apartment buildings,
- strict affordability requirements for buyers,
- high equity requirements,
- complex planning and approval procedures,
- limited availability of suitable land in urban centres.
More rental housing can ease the rental market, but it does not automatically create more choice for households wishing to buy an owner-occupied apartment or detached house.
The housing market will not ease equally everywhere
The national figure of 50,700 approved homes conceals considerable regional differences. Individual major projects can strongly increase the statistics of a canton or region without changing the situation elsewhere.
| Regional starting point | Possible effect of additional homes |
|---|---|
| City with a very low vacancy rate | New homes are often rented quickly; easing remains limited. |
| Well-connected suburban municipality | Larger projects can visibly increase choice and broaden search areas. |
| Municipality with an already larger supply | Additional construction can lead to longer marketing periods and stronger price competition. |
| Tourism region | The effect depends on whether primary residences, holiday homes or serviced properties are created. |
| Rural region with weaker demand | A large project can have a much stronger impact on the local market. |
A national improvement can therefore occur at the same time as persistent or even increasing shortages in individual cities and urban regions.
What do the building permits mean for rents and property prices?
Asking rents
A larger housing supply can slow rent growth if the new homes are built in the right places and price segments. In the short term, asking rents remain supported by low vacancy rates and strong demand.
Rents in existing contracts
The rent in an existing tenancy does not automatically fall because new homes are built in the region. Current tenancies remain subject to the relevant rental-law adjustment rules and the specific contract.
Owner-occupied apartments and detached houses
Because new construction of owner-occupied housing remains limited, a general price decline is unlikely solely because of higher overall permit numbers. Low mortgage rates, limited supply and strong demand continue to support prices.
Building land and apartment buildings
More viable projects can increase demand for suitable sites and development land. At the same time, a larger supply improves the functioning of the housing market in the long term.
| Market segment | Short-term effect | Medium-term effect if projects are realised |
|---|---|---|
| Rental apartments | Still little additional availability. | More choice and potentially slower growth in asking rents. |
| Existing rents | No direct effect. | Indirectly more options for tenants wishing to move. |
| Owner-occupied apartments | Supply remains tight. | More regional choice, but no guaranteed price decline. |
| Detached houses | Very limited new construction. | Shortages remain in many regions. |
What could slow the construction recovery again?
The higher permit numbers are not yet proof of a permanently stronger housing construction cycle. The roughly 11 percent decline in building applications in particular indicates that the pipeline of new projects could weaken again.
Key risks
- falling numbers of new building applications,
- long planning and approval procedures,
- objections and appeals,
- high construction and land costs,
- skills shortages and capacity constraints,
- stricter energy or construction requirements,
- financing problems for individual developers,
- political uncertainty or additional regulation,
- insufficient profitability with regulated or very low rents.
Major projects can distort the statistics
Part of the recent increase may be explained by larger site developments and regional one-off effects. If such projects do not recur in a following year, permit numbers may fall again even though the structural conditions have barely changed.
Construction remains more expensive than before the pandemic
Construction-price inflation has eased significantly, but the level of prices for construction work and materials remains clearly above pre-pandemic levels. This continues to make projects challenging to calculate.
What are the federal government, cantons and municipalities doing about the housing shortage?
Planning and building law in Switzerland are largely the responsibility of the cantons and municipalities. The federal government can set framework conditions, provide data and support cooperation.
The action plan on housing shortages contains measures in three main areas:
- facilitate and improve high-quality inward development,
- strengthen and accelerate planning and approval procedures,
- ensure sufficient affordable and needs-based housing.
Densification instead of urban sprawl
A growing share of housing construction takes place on already developed sites. According to the Federal Office for Spatial Development, around 59 percent of building permits for new homes between 2018 and 2022 were issued on already developed plots.
This includes:
- replacement buildings,
- additional storeys,
- extensions,
- conversion of former commercial and industrial sites,
- densification of existing housing estates.
Densification can create more housing, but it is demanding in planning and political terms. Townscape, noise protection, shading, traffic, green spaces, heritage protection and neighbourhood interests must be taken into account.
Three possible scenarios for the Swiss housing market
The following scenarios are a market assessment and not a guarantee of future development.
Scenario 1: Gradual easing
A large share of the approved homes is built, further projects follow and population growth slows. Choice increases regionally and growth in asking rents moderates.
Scenario 2: Fragile stabilisation
The approved homes increase supply but are quickly absorbed by new households. The vacancy rate stabilises at a low level, while rents and prices continue to rise more moderately.
Scenario 3: Renewed tightening
Falling building applications later lead to fewer permits and completions. Demand remains high. Vacancies fall further and asking rents rise more sharply again.
Based on the current data, fragile stabilisation appears more likely than rapid nationwide easing. The development may be more favourable in individual regions with many completions.
What do more building permits mean for property seekers?
Property seekers should view the higher permit numbers as a positive medium-term signal, but should not wait for an immediately much larger supply.
Monitor new-build projects early
Larger developments are sometimes marketed before completion. People who register early or use a property alert can become aware of initial lettings in good time.
Include suburban areas
New homes are often created in well-connected suburban municipalities because larger sites and densification potential are available there. A wider search radius can significantly increase choice.
Compare total costs
New-build apartments often have higher net rents, but may offer advantages in energy consumption, fittings, accessibility and maintenance. The decisive factor is the total monthly housing and transport cost.
Do not consider room count alone
New apartments are sometimes planned more compactly. Floor plan, living area, storage, balcony, cellar, laundry facilities and furnishing options should therefore be assessed together.
What does the development mean for owners and investors?
Existing owners
More new construction increases regional competition. Well-maintained homes in attractive and well-connected locations are nevertheless likely to remain in demand.
Landlords
In municipalities with many new rental apartments, marketing duration, fittings and pricing may become more important. Demand remains high in very tight markets.
Property developers
Demand for housing generally supports new projects. Profitability, construction costs, regulatory requirements and approval times must still be assessed carefully.
Buyers of new-build apartments
Buyers should check completion, construction quality, guarantees, payment schedule, renovation fund, surroundings and future construction activity in the neighbourhood. A building permit alone does not guarantee on-time occupancy.
How can genuine easing be recognised?
A sustainable improvement is not shown by one high permit figure alone. Several indicators should change at the same time.
| Indicator | Signal of easing |
|---|---|
| Building applications | Stable or rising over several years. |
| Building permits | Broad increase instead of isolated regional major projects. |
| Construction starts | Approved projects are actually realised. |
| Completions | Significantly more homes ready for occupancy. |
| Net growth | New homes clearly exceed demolitions and conversions. |
| Vacancy rate | Stabilisation or increase in tight regions. |
| Number of listings | More available homes per municipality and price segment. |
| Listing duration | Homes remain advertised for longer. |
| Asking rents | Price growth slows or stagnates regionally. |
Checklist: Interpreting building permits and the housing market correctly
Current figures
Region and project
Market effect
Frequently asked questions about building permits and the housing market
Sources and data date
This article reflects the information available up to 30 July 2026. Switzerland’s official vacancy rate for 2026 had not yet been published at that time.
- Wüest Partner: Housing market and building permits 2025
- Federal Office for Housing: The housing market at a glance 2/2026
- Federal Statistical Office: Vacant dwellings survey 2025
- Federal Statistical Office: Population size and change
- Federal Office for Spatial Development: Housing shortage and inward development
- Federal Office for Housing: Objections and appeals
- UBS Real Estate Focus 2026
- Raiffeisen: Swiss real estate, third quarter 2025
Summary
The higher number of building permits is a positive signal for the Swiss housing market. Around 50,700 new homes were approved in 2025, roughly 6 percent more than in the previous year and the highest figure since 2018. Approvals for rental apartments rose particularly strongly. A rapid easing is nevertheless unlikely: building applications have already fallen again, approved homes only reach completion after a delay and the vacancy rate was just 1.00 percent in 2025. At the same time, the population and number of households continue to grow. More construction is therefore initially more likely to prevent the shortage from worsening even faster. Noticeable easing is most likely regionally and where several projects are actually realised and match local demand in terms of location, size and price.