A study on the development of single-family house prices in the canton of Zurich, which was recently published in ZKB’s “Immobilien Aktuell” magazine, shows that they have risen massively over the last five years. The higher the price level in the municipality, the greater the price growth, writes ZKB. For many, the dream of owning a single-family home remains out of reach.
The summary of the ZKB study states: “Prices for single-family homes have exploded, especially during the pandemic years. Trapped in the apartment, the longing for space, private outdoor areas, design options and freedom increased. The dream of the single-family home, which had already been labeled as staid and outdated, was rekindled in many households. The supply platforms were virtually empty. Private homeowners, especially older ones, stayed in their homes for longer. Nobody wanted to part with their familiar home. As a result, a veritable price rally began for the few single-family homes for sale. In the bidding process, prices rose to unprecedented heights in many places. For the first time, we have valued all single-family homes in the canton of Zurich currently and retrospectively as at 2018. Our analysis shows: The price increases are enormous.”
In the city of Zurich, the price increases are enormous, writes ZKB. The majority of them ranged between 380,000 and 990,000 francs, although there were clear differences within the city. Prices have risen the most around Wipkingen and Hong as well as in Hottingen.
Conclusion of the study
According to the study, the ZKB’s valuation of all single-family homes in the canton of Zurich and the resulting quantified price growth clearly show that the dream of home ownership will remain a dream for many tenants. The ZKB writes: “Limited land and the growing population are inevitably making the single-family home an obsolete model. On the way to a Switzerland of 10 million people, this form of housing no longer seems suitable. The new situation is forcing many people, especially the young, to rethink and rethink their dreams. And perhaps the desire to live in a single-family home will also change, moving away from detached single-family homes with surrounding gardens towards urban gardening and sun-drenched terraces. The turning point has already been heralded.”
You can download the March issue of ZKB “Immobilien Aktuell” as a PDF here. In addition to the study on the price development of single-family homes in the canton of Zurich, it contains many other articles worth reading.