The Looming Threat of Demolition
Ever thought you could do with a little more stress in your life? Then try looking for an apartment in Zurich with an average income. As you browse property platforms, you’ll find three-bedroom apartments advertised for 4,000 francs a month. Images of endless queues of people lining up to view apartments have even made their way into international media. “Yes, it’s a crisis,” says Frances Brill, senior scientist at UZH’s Department of Geography. Two key factors are responsible for the current situation: extremely low vacancy rates and high displaceability – in other words, the threat of eviction.
On 1 June 2025, only 0.1% of all apartments in Zurich were empty. Meanwhile, in London the figure stood at around 4%, and 6% in San Francisco. And while it might be true that many apartments seamlessly change hands without ever standing empty, it doesn’t change the fact that demand significantly exceeds supply. “Many people become trapped in their living situation,” explains Brill. When their circumstances change, for example due to a growing family or a separation, it becomes almost impossible to find a suitable apartment. At the same time, Brill’s research shows that misallocated property places an additional burden on the market: older couples often stay in large apartments, because moving into a smaller unit is more expensive.
Eviction as a looming threat
Another phenomenon has a particularly strong impact on the Zurich housing market: eviction due to renovations or demolitions. “This figure is unusually high in Zurich, compared to both Swiss and international cities,” says Brill. Basel faces the same issue, though to a lesser extent, while in Geneva it also worsening rapidly. This leads to tenants living in constant fear of losing their home, which causes stress.
Many people become trapped in their living situation.
In Zurich, this trend is amplified by the high proportion of institutional investors such as pension funds and insurance companies. “Zurich has a longer history of this than other cities [globally] – a significant portion of the market is in the hands of large owners,” says Brill. When demolitions or renovations are planned, these owners can more easily enforce mass evictions.
In countries with more fragmented ownership structures, such as the UK or the USA, this affects mainly low-income groups. In Zurich, however, people from almost all social classes are impacted. It is usually in investors’ interests to demolish buildings and replace them with new ones – where they can charge higher rents. They often justify new construction with changing demands, saying that layout of older apartments no longer meets people’s needs. “However, this trend exacerbates displacement,” explains Brill, who is investigating the housing crisis as part of the Responsible City research project, which is being conducted by four Swiss universities (see box below).
Responsible City
Four Swiss universities are taking part in the SNSF Responsible City research project: the University of Zurich, EPFL, ETH Zurich and the University of Neuchâtel. The aim is to gain a better understanding of Switzerland’s urban landscapes and investigate how cities respond to socio-ecological conflicts such as climate change and financial crises.
The project focuses on case studies in Geneva and Zurich. “These two cities exemplify how current developments lead to disputes over the fair production and distribution of housing – in other words, how to build and renovate without burdening the climate and urban communities,” explains geographer Frances Brill.
The project examines how various actors, from planners to residents and politicians to property owners, respond to such conflicts. As part of a subproject, Frances Brill analyzes the role of the private sector with regards to institutional investors and their behavior in the housing.
Environmental arguments are also used to justify demolition projects, as new buildings are more energy-efficient. “Nevertheless, the carbon footprint of demolition often outweighs the benefits,” insists Brill. “This puts the advantages of new insulation or modern heating systems into perspective.” More research into other approaches is needed. Wooden construction offers an alternative, as construction using timber is both cost-effective and eco-friendly. A special mortgage specifically for wooden buildings would be one way to create financial incentives. It would encourage the construction of houses that release less CO2, and also store it in the long term.
Finding a way out of the predicament
As part of the Responsible City project, researchers analyze the differences and similarities between Zurich and Geneva, and determine what the two cities could learn from one another when it comes to housing. For example, the issue of the environment is seen through a different lens on the banks of the Rhone and the Limmat: “In Zurich, it’s all about ecological construction methods, while in Geneva biodiversity and access to green spaces dominate the debate,” says Brill.
The spatial conditions also differ. In Zurich, there is hardly any land that can be built on. Meanwhile, until recently in Geneva, there were still building land reserves and former industrial zones where apartments could be built. Now, however, land is also becoming scarcer and buildings are more often being demolished to make way for new construction projects. In other words, the Zurich model is spreading to French-speaking Switzerland. “We know that this is not a social approach to urban planning,” says Brill. However, there are no simple solutions. “The classic liberal answer to low vacancy rates would be to build more,” says Brill. “But it's not that simple. Building land is scarce, construction costs have risen, and creating new apartments doesn’t necessarily mean they’ll be affordable.”
Other cities have developed tools to protect tenants. In Geneva, the law on demolitions, transformations and renovations of residential houses (LDTR) has been in force since 1983. This makes it more difficult to terminate leases during renovation and allows tenants to return to the property under affordable conditions after work is completed. Stricter requirements for rent increases or linking new rents to historical developments could also ensure greater fairness. In the end, it boils down to a fundamental question: how fair are the solutions to the housing crisis? Brill sums it up: “Housing is a human right. That’s why we have to consider every measure in terms of who benefits from it – and who loses out.”