The rental housing market is dominated by pension funds and life insurance managers, typically Swiss Life.

The housing crisis stems from the return requirements of these funds. But talking about the greed of property developers is very reductive, because in reality it is about the greed of the funds and, behind them, all Swiss people who have enough money to put aside (2nd and 3rd pillars) and try to get more without effort.

The game seems zero-sum (we pay higher rents but we regain the difference through the growth of our assets deposited in the 2nd or 3rd pillar). But in reality, a deep divide is growing between the well-off, who can access property ownership (and therefore receive the dividends from the funds without paying the rents) and those who cannot save enough to escape this rigged market.

To reduce the housing market crisis, we should therefore limit its financialisation. For example, by increasing the AVS

If cities invested more themselves, like Zurich for example, they would have leverage to manage rents.

The legislature, through its slowness and regulations, increases construction costs and effectively excludes small landlords. What remains is the developer who makes their profit on resale rather than rental. And our pension funds, which no longer know where to invest our contributions, buy these properties, which thus generate returns a first time. Rents are calculated based on the purchase price of the new owner, without the latter making excessive returns. The 2nd pillar is harmful.

The developer also sells retail by creating condominiums. If we had not created this ownership model, perhaps we would have more housing cooperatives.

Add to this that 60 years ago, 6 million inhabitants used 15m2 per person for housing, with shared laundry facilities; today it is 45m2 with excess amenities.

From all sides you shall attack,
and rents you shall bring down!