When more space is needed: Smaller households increase housing costs

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Rents in Switzerland increased by an average of 30 percent between 2000 and 2021. In fact, housing prices increased by over 80 percent. This is shown by an analysis by the Center for Regional Economic Development (Cred) at the University of Bern in collaboration with real estate service provider Iazi.

The study, commissioned by cantonal planners of the Zurich metropolitan area and the Federal Housing Office (BWO), also cites the reasons for rising housing costs. For example, spatial planning has an impact on construction activity and therefore affects housing costs.

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The study finds that the increase in housing demand is the driving factor in the rise in prices. Among other things, household downsizing, population growth and increased individual housing consumption also played a role.

Internal development approach

Spatial planning can be effective here, the study’s authors write. It limits the availability of building land and construction site capacities. In this way it controls how flexibly the supply of living space can adapt to changing demand. If spatial planning is too rigid, the offer may respond less flexibly to a sharp increase in demand. This may lead to increased housing costs in the long run.

According to the research, a possible solution could be a tool for internal development. This makes it possible to both protect the landscape and increase the housing supply.

The study also shows that increased zoning lowers prices in areas where construction land use is already high, the authors say. Upgrading is the expansion of possible uses within a construction site.

The research results also reveal that there is a link between high housing costs and high planning and process costs. Lengthy approval and objection procedures also contribute to increased costs. (SDA)

Source : Blick

Malan

I am Dawid Malan, a news reporter for 24 Instant News. I specialize in celebrity and entertainment news, writing stories that capture the attention of readers from all walks of life. My work has been featured in some of the world’s leading publications and I am passionate about delivering quality content to my readers.