The challenge of home ownership in Switzerland
In Switzerland, home ownership is becoming a real challenge for many citizens, particularly young people. While the purchase of a house or apartment was once an attainable goal for a large proportion of the population, this dream seems increasingly remote for today's generations. Indeed, the Swiss are buying their first property much later than their European neighbors, reflecting a complex reality marked by rising prices and increasingly stringent lending conditions.
Significantly behind Europe
According to a Swiss Life study, the Swiss buy their first property on average 17 years later than the French, and 14 years later than the Germans. This gap illustrates just how difficult access to home ownership has become in Switzerland. Faced with economic conditions that are less favorable than those of their parents, young adults find it difficult to raise the necessary funds for a property purchase.
Take the example of Stéphanie Marquis, a 35-year-old commercial employee who dreamed of building her own home. Unfortunately, her project had to be scaled back due to rising costs and increasingly stringent financial requirements. Like many others in her situation, she had to turn to renting, although her initial wish was to acquire a property for her family.
An intergenerational trend
This difficulty in accessing home ownership affects not only young people, but also the entire middle class. In 2000, the average age of homeowners in Switzerland was 54; by 2018, it had risen to 58. This ageing of the homeowner population reflects a market that is increasingly demanding and inaccessible to younger generations.
The statistics speak for themselves: only 20% of households composed of 35-year-olds are homeowners, compared with 55% of 70-year-olds. This change can be explained by a number of factors, not least the continuing rise in property prices and salaries, which have risen only modestly over the past 25 years.
Stricter lending rules
In addition to rising prices, the criteria for obtaining a mortgage have become stricter. For example, to buy a property worth CHF 1 million, you now need to have 20% equity, including 10% in cash. What's more, the income required to obtain a loan is around 180,000 francs, which is well above the median salary in Switzerland. These conditions make buying a property even more difficult, especially for young families trying to buy with limited resources.
Solutions exist, but they are limited
Despite these obstacles, it is still possible to become a homeowner in Switzerland, particularly in more rural areas where prices are lower. Christian Wenger, a real estate finance consultant, points out that a well-anticipated savings plan and possible outside help can make the purchase of a property feasible. However, it is clear that home ownership in Switzerland today is a difficult path, requiring sacrifice and rigorous financial preparation.
For some, family inheritance may be the only viable solution to home ownership. But for all those who aspire to become homeowners, the reality of the Swiss real estate market requires them to rethink their expectations and adopt more prudent financial strategies.
Sources
rts.ch - Article
Significantly behind Europe
According to a Swiss Life study, the Swiss buy their first property on average 17 years later than the French, and 14 years later than the Germans. This gap illustrates just how difficult access to home ownership has become in Switzerland. Faced with economic conditions that are less favorable than those of their parents, young adults find it difficult to raise the necessary funds for a property purchase.
Take the example of Stéphanie Marquis, a 35-year-old commercial employee who dreamed of building her own home. Unfortunately, her project had to be scaled back due to rising costs and increasingly stringent financial requirements. Like many others in her situation, she had to turn to renting, although her initial wish was to acquire a property for her family.
An intergenerational trend
This difficulty in accessing home ownership affects not only young people, but also the entire middle class. In 2000, the average age of homeowners in Switzerland was 54; by 2018, it had risen to 58. This ageing of the homeowner population reflects a market that is increasingly demanding and inaccessible to younger generations.
The statistics speak for themselves: only 20% of households composed of 35-year-olds are homeowners, compared with 55% of 70-year-olds. This change can be explained by a number of factors, not least the continuing rise in property prices and salaries, which have risen only modestly over the past 25 years.
Stricter lending rules
In addition to rising prices, the criteria for obtaining a mortgage have become stricter. For example, to buy a property worth CHF 1 million, you now need to have 20% equity, including 10% in cash. What's more, the income required to obtain a loan is around 180,000 francs, which is well above the median salary in Switzerland. These conditions make buying a property even more difficult, especially for young families trying to buy with limited resources.
Solutions exist, but they are limited
Despite these obstacles, it is still possible to become a homeowner in Switzerland, particularly in more rural areas where prices are lower. Christian Wenger, a real estate finance consultant, points out that a well-anticipated savings plan and possible outside help can make the purchase of a property feasible. However, it is clear that home ownership in Switzerland today is a difficult path, requiring sacrifice and rigorous financial preparation.
For some, family inheritance may be the only viable solution to home ownership. But for all those who aspire to become homeowners, the reality of the Swiss real estate market requires them to rethink their expectations and adopt more prudent financial strategies.
Sources
rts.ch - Article