Is Renting Actually Cheaper Than Buying Right Now?

Zurich's average property price has surpassed CHF 15,000 per square meter, making it one of the most expensive cities in Europe to buy a home.

This matters now because many would-be buyers are being priced out of the market, forcing them to consider renting as a long-term solution. With the summer months typically seeing a surge in property viewings and purchases, the question on everyone's mind is whether renting is actually the more affordable option. The current market conditions, coupled with the recent trends in global events, such as the heatwave cancelling Fourth of July events in the US, have led to a shift in focus towards the local property market.

In Zurich, neighborhoods like Seefeld and Enge are highly sought after for their waterfront properties, but come with a hefty price tag. A 3-bedroom apartment in Seefeld can cost upwards of CHF 2.5 million, while a similar property in Kreis 5 or Wipkingen may be more affordable, but still out of reach for many. The Zurich Cantonal Bank and the City of Zurich's housing department are working to provide more affordable options, but the demand far outstrips the supply. For example, the newly developed area around the Europaallee, with its mix of shops, restaurants, and apartments, has become a hub for young professionals and families.

Looking at the Numbers

According to data from the Swiss Federal Statistical Office, the average rent for a 3-bedroom apartment in Zurich is around CHF 3,500 per month. In contrast, the monthly mortgage payment on a CHF 2.5 million apartment, assuming a 10% down payment and a 20-year mortgage at 2% interest, would be over CHF 10,000. When you factor in additional costs like property taxes, maintenance, and insurance, the total cost of ownership can be prohibitively expensive. As of June 2026, the Swiss National Bank's decision to keep interest rates low has made borrowing more attractive, but the high property prices remain a significant barrier to entry.

So, what happens next? For those considering buying, it may be worth waiting to see if the market cools down, or exploring alternative neighborhoods like Altstetten or Albisrieden. For renters, it's essential to carefully review lease agreements and budget for potential rent increases. The City of Zurich's rent control measures, such as the 'Mietpreisbremse', aim to limit rent increases to 2% per year, but tenants should still be prepared for potential changes. As the property market continues to evolve, one thing is clear: renting may indeed be the more affordable option for many in Zurich, at least for the time being.