Why are more and more residents moving out of Swiss cities?

While in the past city living appealed to many new residents, mostly due to employment opportunities and infrastructure, today largest urban centres are recording an exodus of sorts, with the increasing number of people relocating away from cities.

The reason, according to a UBS report, is that high rents in cities like Zurich and Geneva, are – literally— driving people away to the suburbs, where housing is less costly.

The advantage of a small and compact country like Switzerland is that the countryside — that is, small towns and villages that surround urban centres — lies in close proximity to the city, so no long commute is required.

“The outskirts of cities are becoming more attractive, as tenants can save considerable amounts on rent by relocating,” the report states.

As a result, “the country's five major cities have recorded departures of around 15,000 people per year between 2020 and 2022, the highest in the last 40 years,” according to UBS.

“In Zurich, Bern and Geneva, annual net departures were three to four times more numerous than in the previous 10 years.”

Just how much cheaper is it to rent in the suburbs?

"For many families, savings are substantial,” UBS found. “In 2023, rents offered within a 10-minute travel radius were on average 16 percent lower outside cities.”

In the Zurich area, for instance, where housing costs are notoriously high, rents, after a 10-minute drive away from the city centre, are a fifth lower. After a 20 minute-commute, they are a third lower, and after 60 minutes, half as low.

UBS cited the example of Schlieren and Dübendorf, two towns located less than a 15-minute drive from the centre.

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A similar trend is observed in another expensive city, Geneva.

However, rents in Lancy, a 10-minute drive from the centre, are 16 percent lower, and even more so (21 percent) in another nearby community, Vernier.

READ ALSO: The best commuter towns when working in Geneva

The price drop is slighter in Lausanne and Basel, where rents in nearby communities fall by 5 percent and 11percent, respectively.

'A matter of time'

This ‘town-to-country’ trend is expected to continue, at least in the medium-term.

But does higher demand for housing on the outskirts mean that high rents will shift to the countryside as well?

"This depends on the ability of those areas to absorb the growing demand," said Ursina Kubli, head of property research at Zurich Cantonal Bank. However, “the pressure on the housing market will increase in certain regions.” 

Another real estate expert,  Fredy Hasenmaile, agreed that “Switzerland is heading towards a housing shortage of unprecedented proportions. Housing shortage has not yet reached the countryside, but it is only a matter of time.”