News
Housing policy in the spotlight
Our latest study, which we carried out on behalf of the Verband Immobilien Schweiz (VIS), shows which households may have financial problems with housing costs. The salient features of these households are:
single - settled in a moderately populated region - tend to consume a lot of living space per person - low-income.
In order to relieve the burden on households, the state has two social policy instruments at its disposal: supply-side and demand-side subsidies. The former subsidises housing directly, while the latter supports households with housing allowances. Supply-side subsidy is mainly realised through the housing stock of cities and municipalities, while demand-side subsidy support is primarily provided via social welfare and AHV/IV supplementary benefits. Our calculations show that the public sector currently spends roughly the same amount per supported household on subsidised housing as on housing allowances: on average around CHF 5,000 per year. However, housing allowances are more targeted, as it almost exclusively benefits households in need.
Based on the demand-side subsidy systems currently in place in Switzerland, we estimate the costs of extending these systems to all overburdened households. This shows that in an expanded system of demand-side support, around 50 per cent more low-income households could be supported with the funds currently used for supply-side support than is currently the case.