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- Transitional provisions to the revision of the Stock Corporation Act of June 19, 2020
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- Art. 5 lit. d FADP
- Art. 5 lit. f und g FADP
- Art. 6 para. 3-5 FADP
- Art. 6 Abs. 6 and 7 FADP
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- Art. 1 CCC (Convention on Cybercrime)
- Art. 2 CCC (Convention on Cybercrime)
- Art. 3 CCC (Convention on Cybercrime)
- Art. 4 CCC (Convention on Cybercrime)
- Art. 5 CCC (Convention on Cybercrime)
- Art. 6 CCC (Convention on Cybercrime)
- Art. 7 CCC (Convention on Cybercrime)
- Art. 8 CCC (Convention on Cybercrime)
- Art. 9 CCC (Convention on Cybercrime)
- Art. 11 CCC (Convention on Cybercrime)
- Art. 12 CCC (Convention on Cybercrime)
- Art. 16 CCC (Convention on Cybercrime)
- Art. 18 CCC (Convention on Cybercrime)
- Art. 25 CCC (Convention on Cybercrime)
- Art. 27 CCC (Convention on Cybercrime)
- Art. 28 CCC (Convention on Cybercrime)
- Art. 29 CCC (Convention on Cybercrime)
- Art. 32 CCC (Convention on Cybercrime)
- Art. 33 CCC (Convention on Cybercrime)
- Art. 34 CCC (Convention on Cybercrime)
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FEDERAL CONSTITUTION
FEDERAL ACT ON DIRECT FEDERAL TAX
MEDICAL DEVICES ORDINANCE
CODE OF OBLIGATIONS
FEDERAL LAW ON PRIVATE INTERNATIONAL LAW
LUGANO CONVENTION
CODE OF CRIMINAL PROCEDURE
CIVIL PROCEDURE CODE
FEDERAL ACT ON POLITICAL RIGHTS
CIVIL CODE
FEDERAL ACT ON CARTELS AND OTHER RESTRAINTS OF COMPETITION
FEDERAL ACT ON INTERNATIONAL MUTUAL ASSISTANCE IN CRIMINAL MATTERS
DEBT ENFORCEMENT AND BANKRUPTCY ACT
FEDERAL ACT ON DATA PROTECTION
CRIMINAL CODE
CYBERCRIME CONVENTION
COMMERCIAL REGISTER ORDINANCE
FEDERAL ACT ON COMBATING MONEY LAUNDERING AND TERRORIST FINANCING
FREEDOM OF INFORMATION ACT
FEDERAL ACT ON THE INTERNATIONAL TRANSFER OF CULTURAL PROPERTY
FEDERAL ACT ON MEDICINAL PRODUCTS AND MEDICAL DEVICES
TAX HARMONISATION ACT
BANKING ACT
- I. Historical Background
- II. Development of the Housing Market in Switzerland
- III. Commentary in the Strict Sense
- IV. Conclusion
- Recommended further reading
- Bibliography
I. Historical Background
1 After the federal government launched three housing initiatives during World War II to stimulate stagnating housing construction, the first provision on housing construction was incorporated into the Federal Constitution shortly after the end of the war with Art. 34quinquies aBV. This provision was drafted as a counterproposal to the later-withdrawn popular initiative “For the Family” and was adopted by the electorate on November 25, 1945, with 76.3% of the vote in favor, as well as by all cantons with the exception of one. Paragraph 3 of the provision authorized the Confederation to support efforts in the field of housing and settlement that benefited families, with a federal law to regulate the conditions attached to federal contributions. Subsequently, based on this provision, the legislature enacted various federal decrees and laws to implement the initiative. These dealt, among other things, with federal financial contributions to the cantons to combat the housing shortage, the promotion of social housing construction, and special measures to improve housing conditions in mountainous areas.
2 As a counterproposal to the Denner AG initiative, which sought to oblige the federal government to establish a Swiss housing fund to grant low-interest mortgage loans, the previous Art. 34quinquies, para. 3 of the 1972 Federal Constitution was repealed and replaced by a new Art. 34sexies of the 1972 Federal Constitution. This provision ended the restriction of housing promotion to families and also formed the basis for the current regulation. Based on Art. 34sexies of the old Federal Constitution, the Housing and Homeownership Promotion Act of October 4, 1974 (WEG; SR 843) entered into force on January 1, 1975, through which more than 107,000 housing units were supported between 1976 and 2001. In addition, following an amendment to the law, Art. 34sexies aBV also served as the new basis for the Federal Act of March 20, 1970, on the Improvement of Housing Conditions in Mountainous Areas (VWBG; SR 844).
3 With the total revision of the Constitution, Art. 34sexies aBV became the current Art. 108 FC. In the process, the provision was formulated more precisely and paragraphs 4 and 5 were removed; however, there were no changes in substance. The Federal Act of March 21, 2003, on the Promotion of Affordable Housing (WFG; SR 842) was already enacted based on Art. 108 of the FC. While the WEG and, in particular, its planning law provisions remain in force, federal assistance will be granted only under the new law as of the WFG’s entry into force on October 1, 2003, although the WEG continues to apply to subsidies granted under the old law. The introduction of the WFG resulted in a narrowing of the scope of support and the discontinuation of general measures to promote housing construction (see below N. 22). Furthermore, under the Federal Act of December 19, 2003, on the 2003 Relief Program, the WFG measures—motivated by social and property policy considerations—aimed at reducing housing costs for owner-occupied and tenant households were suspended until 2008 and have not been applied since then by decision of the Federal Council. To date, therefore, no direct financial assistance in the form of loans under Articles 12 and 24 of the Housing Act has been granted. Similarly, since the reform of fiscal equalization (NFA), no financial assistance under the VWBG has been provided (Art. 21 VWBG).
4 Presumably also due to the federal government’s limited efforts in the area of housing construction and homeownership promotion, various popular initiatives have been put to a vote in recent years. For instance, the “Building Savings Initiative” was rejected on March 11, 2012, while the initiative “A Home of One’s Own Thanks to Building Savings” met the same fate on June 17, 2012. The popular initiative “Secure Housing in Old Age” also failed to find favor with the constitutional assembly on September 23, 2012, as did the popular initiative “More Affordable Housing” on February 9, 2020, for which the Federal Council did at least draft a counterproposal. This counterproposal concerned a framework credit of 250 million Swiss francs, intended to replenish the Fonds de Roulement (see below N. 15 and N. 29) established under the Housing Act (WFG) for granting loans to non-profit housing providers for a period of ten years starting in 2020, and which was approved following the rejection of the popular initiative “More Affordable Housing.” The present commentary is also based on the situation of the Swiss housing market as described in the accompanying message. The original message on Art. 34sexies of the Federal Constitution is based on the housing market as it stood nearly 60 years ago, which is why, in my opinion, only limited conclusions can be drawn from it regarding the current situation.
II. Development of the Housing Market in Switzerland
A. Housing Shortage and Its Causes
5 The introduction of the first constitutional provisions on housing construction already took place against the backdrop of a housing shortage resulting from World War II. While this shortage was rooted in an economic crisis and a state of scarcity, the housing crisis in the 1960s and 1980s was, conversely, attributable to the economic boom prevailing at the time.
6 It was not until 1994 that the vacancy rate exceeded the 1.0% mark, reaching a peak of 1.85% in 1998 before falling sharply again. As the Federal Council explains in its message on the popular initiative “More Affordable Housing,” the development of the Swiss housing market from the turn of the millennium until 2015 was characterized by excess demand. Particularly in urban and tourist regions, this led to a shortage and, in some cases, a sharp rise in asking prices for rental apartments and owner-occupied properties.
7 In addition to the generally strong economic situation, a key driver was population growth following the introduction of full free movement of persons between the EU and Switzerland. To meet this additional demand, an annual increase in supply of around 50,000 housing units would have been necessary; however, between 2007 and 2012, an average of only about 43,000 new housing units entered the market each year. Consequently, the vacancy rate fell to 0.95% by 2012 and did not rise again until 2013, when over 50,000 apartments were built, reaching 1.54% in 2021.
8 In particular, the Swiss National Bank’s policy of low or negative interest rates led institutional investors to invest in residential construction due to a lack of profitable alternatives. However, the housing was built primarily in suburban areas and rural regions, where land reserves were readily available, rather than in cities. Since then, however, the number of households has been rising faster than the housing stock, and the vacancy rate is falling accordingly.
9 In 2022, this trend intensified due to the 60,000 people from Ukraine who sought refuge in Switzerland from Russia’s war of aggression. The total population increased by 158,000 people in 2022, resulting in an additional need for approximately 72,000 apartments based on the average household size currently typical in Switzerland. However, the housing stock increased by only 66,000. The Federal Office for Housing (FOH) estimates that there is currently a shortfall of 5,000 to 10,000 apartments per year. By 2025, the vacancy rate had finally fallen to 1.00%, which is not yet exceptional, as it remained below 1% for most of the period from 2001 to 2015. However, it can be much lower in certain regional markets, particularly in cities.
10 Population growth is not the sole driver of the housing shortage in Switzerland; shrinking household sizes and larger apartments also contribute to it. The average number of people per household in Switzerland fell from 2.31 in 2001 to 2.26 in 2015 and finally to 2.17 in 2023. The average size of a 3.5-room apartment, in turn, increased by one square meter from 79.6 m2 between 2015 and 2021; similarly, the floor areas of apartments with four or more rooms grew. Without this increase in floor area, 40,000 additional housing units could have been built nationwide over six years using the same floor space. Both of these phenomena represent gains in living standards, and it is difficult to imagine that the Swiss population would voluntarily give up living space; therefore, the housing shortage must likely be resolved primarily through the supply side, i.e., by building more apartments. However, rising construction material costs, higher interest rates, a shortage of skilled workers, and a scarcity of building land are currently slowing down housing construction.
B. Outlook through 2040
11 For the next 15 years (planning horizon per Art. 15 of the Spatial Planning Act) starting in 2025, the Federal Statistical Office anticipates population growth of approximately 1 million (reference scenario) to 1.5 million people (high scenario), for whom housing must be provided. Due to the principle of densification, this growth should primarily take place in urban areas, where, however, supply is already unable to keep pace with demand because housing construction is particularly challenging in areas that are already built up. If the housing shortage persists, calls for additional rezoning of building land are likely to follow. Although the currently undeveloped building zones theoretically offer space for 0.9 to 1.6 million people, in some cantons and regions they are too large and must be partially rezoned. It is therefore foreseeable that additional building land will have to be designated in central locations, especially since it cannot be assumed that the remaining capacity in the building zones can be optimally utilized. The conflict of objectives with the prudent use of land pursuant to Art. 75 of the FC is evident.
12 Meeting the demand for housing will therefore remain difficult in the foreseeable future, particularly for people seeking affordable housing. The tight situation in the housing market is leading to rising asking rents, while existing rents have increased, particularly due to inflation and the reference interest rate. Added to this are rising energy prices, which are making housing more expensive overall. The current housing shortage is consequently particularly problematic for the lowest income quintile, for whom the share of housing costs has increased significantly since 2000 and now accounts for a good third of their income—a 6% increase. For the next income quintile, the share of housing costs is just over 20%, slightly lower than in 2000. Housing will therefore need to be created especially for the low-income bracket, a challenge compounded by the fact that in the near future, numerous older apartments will be renovated or replaced by new construction, causing affordable housing to disappear. However, due to high construction costs, apartments are currently being built primarily in the upper price segment. Effective measures to create more affordable housing, particularly for low-income individuals, include increasing the floor area ratio, promoting non-profit housing construction through cost-based rent shares, and providing direct support to eligible households.
C. Federal Strategy
13 The Federal Council intends to continue ensuring the supply of housing primarily through the private sector in accordance with market-based criteria. The public sector is responsible for market regulations, and the federal government is primarily responsible for tenancy law under the CO, whereby it may, based on Art. 109 of the FC, issue regulations against abuses in the rental sector. In addition, within the framework of housing promotion, the Confederation is to continue to contribute to closing supply gaps as a complement to the market and, to this end, continue the existing partnership with non-profit housing organizations. Furthermore, individual cantons and municipalities also have their own housing policies, primarily through financial assistance.
14 Additional measures such as interventions in pricing under tenancy law, making federal and quasi-federal properties more accessible for affordable or non-profit housing construction, a right of first refusal for municipalities in favor of affordable housing construction, or an adjustment to the federal and cantonal building program to promote energy-efficient renovations that would facilitate the preservation of affordable housing, were rejected by the Federal Council.
15 Given the high demand, it is clear that non-profit housing, which accounts for just under 4% of all housing in Switzerland, will hardly be sufficient to meet the excess demand. The Fonds de Roulement mentioned earlier (see N. 4 above) has allowed the federal government to provide annual support for an average of just under 1,500 housing units since 2003. By increasing the fund by 250 million, the federal government expected that, starting in 2020, it would initially be able to support 1,600 housing units and that this number could be increased to 1,900 housing units by 2029 through loan repayments. Starting in 2030, a constant level of support at a lower level—i.e., 1,200 housing units—is planned.
16 To address the housing shortage, the head of the Federal Department of Economic Affairs, Education and Research (EAER), Federal Councilor Guy Parmelin, invited representatives from the cantons, cities, and municipalities, as well as the real estate and construction sectors, to a “roundtable” discussion, which resulted in an action plan that was published in February 2024. Since the decline in construction activity was identified as a key factor in the looming housing shortage, the action plan focuses primarily on the supply side, especially since government measures to manage the demand for housing would in many cases entail significant social and economic interventions. The various measures envisaged are intended to facilitate inward urban development while ensuring high quality, as well as to strengthen and accelerate planning and building permit procedures. This should ultimately result in the creation of sufficient affordable housing that meets demand. The measures are largely in line with the Federal Council’s previous strategy on housing supply and primarily seek to optimize market-based conditions. Due to the strained financial situation, the reactivation of direct financial aid in the form of loans (see above N. 3 at the end) or even non-repayable grants was ruled out.
III. Commentary in the Strict Sense
A. Position in the FC
17 Art. 108 of the FC is located in Title 3 (Confederation, Cantons, and Municipalities), Chapter 2 (Competences), Section 8, which defines the powers and duties of the Confederation in the areas of “housing, work, social security, and health.” Together with the social objectives of Art. 41 FC, this section constitutes the so-called social constitution. Along with Art. 109 FC (Rental Housing), Art. 108 FC addresses the “housing” sector and is linked to it through the shared goal of alleviating the housing shortage. The two provisions clarify the social objective set forth in Art. 41 para. 1 lit. e of the FC, according to which the federal government and the cantons, in addition to personal responsibility and private initiative, are committed to ensuring that those seeking housing can find suitable housing for themselves and their families under affordable conditions. Like food, security, or education, housing is one of the basic human needs, and the state must support those who are unable to meet this need on their own. To the extent that housing promotion goes beyond the minimum guarantee of a “roof over one’s head,” the Confederation justifies its activities on the grounds that good housing conditions promote individual well-being and productivity and contribute to social harmony as well as the integration of generations and the foreign population. This would not only relieve the burden on welfare and social services but also strengthen Switzerland as a business location.
B. Mandates to Promote Housing Construction and Homeownership (para. 1)
18 Art. 108 para. 1 of the FC grants the Confederation the fundamental mandate to promote housing construction and homeownership, which was previously mentioned only in passing in Art. 34sexies of the old FC. This constitutes a mandatory promotional authority, which also includes the legislative powers for the WEG, WFG, and VWBG. The authority is comprehensive but does not supersede cantonal authorities (so-called parallel authority). Cantons and municipalities thus remain free to provide for similar or more extensive promotion of housing construction and home ownership.
19 Para. 1 lists three areas of support, namely “housing construction,” “the acquisition of residential property and home ownership for private use,” and “the activities of non-profit housing construction agencies and organizations.” Each of these three areas of support is given equal weight.
1. Housing construction
20 Housing construction refers to the creation and maintenance of living space and encompasses not only the construction of new housing but also the renovation of existing stock. The living space may be created for either rental or transfer of ownership, but not for use as a second home. Housing construction is supported through the funding instruments listed in para. 2. Given the current situation on the housing market (see above N. 5 ff.), the creation of additional living space certainly serves the public interest.
2. Promotion of Home Ownership
21 Only the acquisition of home ownership for personal use or for non-profit purposes is eligible for support, whereby this may involve condominiums as well as multi-family and single-family homes. As the phrase “private individuals’ own use” indicates, the support measures are aimed solely at natural persons who use the residential property to meet the basic need for “housing,” which is not the case with second homes. The promotion of home ownership pursues the political goal of facilitating access to owner-occupied residential property in Switzerland. The federal government fulfills this mandate in particular through the favorable structure of the imputed rental value taxation as well as the tax-advantaged early withdrawal options from Pillars 2 and 3a. The tax deductions available for investments in energy conservation and environmental protection also serve a promotional purpose. Recently, the electorate voted to abolish the imputed rental value tax, a development that benefits, at the very least, those who already own their own homes.
22 Cardinaux argues that the promotion of homeownership no longer serves any social purpose or public interest, since a large portion of the population expected to reside permanently in Switzerland already owns a home. In addition to the aforementioned high proportion of the foreign population that does not intend to remain in Switzerland permanently, there are various other reasons for the low homeownership rate in Switzerland (currently around 36%) compared to other European countries. Factors cited include urbanization, the late introduction of condominium ownership in 1965, and liberal rental laws, which result in a (generally) large supply of rental apartments. At least from an economic perspective, it does not appear necessary to strive for a further increase in the homeownership rate. While homeownership is—at present—more affordable than renting, and the owner can benefit from increases in land value, it also reduces mobility, ties up a large portion of one’s assets, leads to debt, and promotes urban sprawl; thus, it is not generally preferable to renting. Nevertheless, the fact that homeownership is hardly affordable for low-income families and individuals in earlier stages of life remains unsatisfactory, as they are denied the free choice of their living arrangement.
3. Providers and Organization of Non-Profit Housing Construction
23 The primary providers and organizers of non-profit housing construction are the housing cooperatives. Based on the WFG, support for these is provided indirectly through organizations active nationwide.
24 As noted (see N. 3), the three policy objectives were comprehensively implemented by the WEG until 2001. With the subsequent WFG, there was a narrowing of the scope of support, and general measures to promote housing construction were discontinued.
4. Additional Obligations to Act?
25 In light of the numerous initiatives rejected in recent years that sought additional support for housing construction and homeownership (see N. 4 above), the constitutional framers currently see no reason to deviate from the Federal Council’s chosen strategy in the housing sector, which is supported by Parliament. This assessment must be respected. In my opinion, the current approach also does not contradict the intentions expressed when the original Art. 34sexies aBV was created in the early 1970s. Even then, the federal legislature was granted broad discretion, which was not altered with the transfer to Art. 108 FC. Neither earlier nor current legal scholarship sees this as a cause for objection from a constitutional perspective. In the case law of the Federal Supreme Court, there are again no judgments that go significantly beyond the literal wording of Art. 108 of the FC or Art. 34sexies of the former FC.
C. Individual Promotion Measures (para. 2)
1. Classification
26 Para. 2 of Article 26 clarifies the promotion mandate of para. 1. It contains a non-exhaustive list of five promotional measures. These can be divided into land-related measures (“acquisition and development of land for housing construction”), construction-related measures (“rationalization and reduction of housing construction costs”), and the reduction of housing costs.
27 Although land-related measures were provided for in the WEG through the promotion of precautionary land acquisition (Art. 21 et seq. WEG) and development assistance (Art. 12 et seq. WEG), they were rarely applied and were therefore not carried over into the WFG. The WEG contains various provisions regarding construction-related measures, such as the promotion of construction research and rationalization (Art. 28 et seq. WEG), whereas the WFG merely mentions the principles of promotion (Art. 5 WFG).
2. Currently Existing Measures
28 Only the reduction of housing costs remains significant, even though the WEG’s cost-reduction regime—which provided for property-specific financial assistance supplemented by additional, tenant-specific reductions—was also not incorporated into the WFG. The WFG now provides for financial assistance in the form of interest-free or low-interest loans and guarantees for the provision of affordable rental housing (Art. 10 et seq. WFG) and for the promotion of affordable home ownership (Art. 22 et seq. WFG). However, this direct financial assistance was suspended some time ago (see above N. 3, end of para. 1), so that the federal government currently provides, in practice, only indirect housing promotion to the agencies and organizations involved in non-profit housing construction, based on the general authority to provide support under para. 1.
29 The Fonds de Roulement, funded with federal funds (see above N. 4, N. 15), has existed for a long time; it provides interest-bearing and repayable loans to non-profit housing developers (Art. 34(c); Art. 37 WFG). Furthermore, the Confederation guarantees bonds issued by the Issuing Center for Non-Profit Housing Developers (EGW), which allows EGW members to raise long-term capital at favorable interest rates (Art. 34(a); Art. 35 WFG). In addition, the Confederation grants counter-guarantees to the Mortgage Guarantee Cooperative of Swiss Building and Housing Cooperatives (HBG), thereby facilitating housing finance and enabling lower interest costs (Art. 34(b); Art. 36 WFG). According to the Federal Office for Housing, these measures have proven effective and should be continued and specifically improved.
30 The scope of para. 2 appears limited under the circumstances mentioned, as the examples provided in this paragraph to illustrate the measures that may be taken on the basis of the general mandate of para. 1 are now, for the most part,dead letters. The legislature interprets Art. 108 of the FC narrowly and bases only the direct promotion of housing construction and home ownership on it. As noted (above N. 13 ff.), the Federal Council also intends—where possible—to continue focusing on the indirect promotion of housing construction. As already mentioned (above N. 25), by taking this approach, it does not fail to fully exercise the powers granted to it by Art. 108 of the FC. This conclusion regarding the general provisions naturally also applies to the specific promotion measures.
31 In this regard, there are numerous other government measures that have an impact on housing construction and home ownership. Already mentioned was the promotion of home ownership through the favorable structure of the imputed rental value taxation, which has since been completely abolished (see N. 21 above), as well as the tax-advantaged options for early withdrawal from pension plans. The granting of supplementary benefits by the AHV and IV also takes housing costs into account and is specifically targeted at economically disadvantaged individuals. These supplementary benefits are likewise to be counted among housing promotion measures and are to be regarded as direct assistance. In addition, as already noted, the cantons can also take action in the area of housing promotion. Furthermore, based on their powers under spatial planning and building law (Art. 75 of the FC), they are able to promote non-profit housing construction through spatial planning measures as well, for example by transferring building land or granting usage privileges.
3. Conflicting Objectives
32 However, as already mentioned, there are significant conflicting objectives in the area of spatial planning in light of population trends and the requirement for the economical use of land (Art. 75 of the FC). Effective coordination between housing and homeownership promotion and infill development is absolutely essential. There are also points of intersection regarding infrastructure development (see para. 3 below). Art. 75b of the FC has no direct impact on housing and homeownership promotion, as it applies only to second homes and not to basic housing provision. The actual effects of this provision and the SHA based on it on the primary housing market are controversial. The same applies to the current effects of the “Lex Koller.” In my opinion, these are of minor significance, as only an extremely small portion of local real estate transactions falls within the scope of the “Lex Koller.”
D. Development and Rationalization of Construction (para. 3)
33 Para. 3 grants the Confederation legislative authority limited to the areas of development of building land and the rationalization of construction, with retroactive derogatory effect (concurrent authority). This authority is not mandatory; but if the Confederation exercises it, it may comprehensively regulate these areas and is not limited (unlike in spatial planning) to the establishment of principles.
1. Development
34 The legislative authority regarding the development of land for housing construction overlaps with spatial planning (Art. 75 of the FC), which includes authority over the same subject matter. The WEG has a separate chapter on development law (Art. 4 et seq. WEG), which remains in force. However, the measures provided for were rarely used and were not incorporated into the WFG. The relationship between the provisions of the WEG and Art. 19 RPG, which regulates development in spatial planning, is controversial.
35 According to Art. 19 para. 1 of the Spatial Planning Act (RPG), land is considered developed if there is sufficient access for the intended use and the necessary water, energy, and wastewater lines are located close enough to allow for connection without significant expense. Art. 4 of the Housing Act (WEG) clarifies the concept of development for residential construction, distinguishing between rough and fine development. Art. 4–6 WEG, although dating from before the RPG, can in principle be interpreted as specifications of the first two paragraphs of Art. 19 RPG. The provisions of the WEG on building land readjustment (Art. 7 et seq.), in turn, take precedence as lex specialis over the general principle of land readjustment under Art. 20 RPG.
2. Rationalization of Construction
36 Rationalization of construction means producing buildings of a certain value with less effort and at lower costs, or building more or better structures with a given amount of effort. This goal can be achieved through improvements of a planning, organizational, and technical nature. The WEG provides for several general provisions in this regard (Art. 28 et seq. WEG), in particular that the Federal Council shall issue guidelines on building rationalization (Art. 31 WEG) and—where necessary—the legal provisions indispensable for building rationalization (Art. 32 WEG). These provisions, which do not specify content, remain in force; the Housing Act (WFG), however, no longer provides for any (separate) regulations on building rationalization. To date, however, the federal government has not issued any building regulations essential for building rationalization. The Federal Council does not consider planning and building law to fall within the federal government’s sphere of responsibility; however, harmonization efforts have been underway at the cantonal level for some time, and a formal harmonization of the most important building terms and measurement methods used in cantonal law has taken place. To date, 16 cantons have acceded to the Intercantonal Agreement of September 22, 2005, on the Harmonization of Construction Terms (IVHB). In addition, the ARE has presented a model structure for a cantonal building law, which is intended to contribute to the standardization of the various cantonal building laws and increase efficiency in construction. As part of the Action Plan on Housing Shortages, the federal government now intends to play at least a supporting role in making planning and building permit procedures more efficient. Technical building rationalization, however, remains largely the domain of private initiatives.
37 Along with building rationalization, research was also mentioned in Art. 34sexies para. 2 lit. c of the old FC, and Art. 25 ff. of the Housing Act (WEG) devoted a joint title to housing market research, building research, and building rationalization. Art. 108 of the FC does not explicitly mention the promotion of housing market and building research. The authority to gather foundational data is implicitly included in the various substantive competences of the Confederation. Furthermore, Art. 64 of the FC provides comprehensive authority to promote research, upon which the legally mandated research mandates for the promotion of housing construction and home ownership can also be based. In the Housing Act (WFG), the provisions on research promotion are more general than in the Housing Ownership Act (WEG). Research supported by the Federal Office for Housing is intended primarily to increase market transparency and to develop a foundation for improving the supply of housing and the living environment (Art. 41 para. 1 WFG). Furthermore, construction research can also be understood as a construction-related support measure in accordance with Art. 108(2) of the FC.
E. Consideration of the Interests of Certain Population Groups / Social Obligation (para. 4)
38Para. 4 emphasizes, in general terms, the social obligation of housing construction and home ownership promotion without thereby establishing a specific authority. The list explicitly mentions families, the elderly, the needy, and people with disabilities, without establishing priorities. What the mentioned groups have in common is that, for financial or other reasons, they face particular challenges in the housing market or when acquiring home ownership. Since the list is not exhaustive, the interests of other groups may also be taken into account, e.g., young people, who are not explicitly listed.
IV. Conclusion
39 The federal government exercises its powers in the area of housing construction and homeownership promotion with great restraint. It largely limits its activities to ensuring the market-based conditions necessary for an adequate supply of housing. Despite past and current housing shortages, the strategy has generally been successful, especially since Switzerland has repeatedly had to absorb significant population growth. Even though the failure to fully exercise these powers is regretted by various parties and calls are made for additional intervention in the housing market, success is not guaranteed. Simply due to the sheer size of the housing market, government influence is limited—not only because of financial constraints. Overall, the chosen approach is not objectionable, and in particular, the cantons and municipalities have the option to intervene locally to supplement it. They do so repeatedly, but so far they have not been able to demonstrate better results, nor are such results documented.
About the Author
Dr. iur. Fabian Mösching, attorney, LL.M. (University of Sydney), is a court clerk in the First Public Law Division of the Swiss Federal Supreme Court in Lausanne. He wrote his dissertation on measures to restrict second homes.
Recommended further reading
Alvarez Cipriano/Streiff Oliver, Art. 108 BV in: Ehrenzeller Bernhard/Schindler Benjamin/Schweizer Rainer J./Vallender Klaus A. (Hrsg.), Die schweizerische Bundesverfassung, St. Galler Kommentar 4. Aufl., Zürich 2023.
Aubert Jean-François, Art. 108 BV in: Aubert Jean-François/Mahon Pascal, Petit Commentaire de la Constiution fédérale de la Confédération Suisse, Zürich/Basel/Genf 2003.
Biaggini Giovanni, Bundesverfassung der Schweizerischen Eidgenossenschaft, 2. Aufl., Zürich 2017.
Bühlmann Lukas/Spori Niklaus, Förderung des gemeinnützigen Wohnungsbaus mit raumplanerischen Mitteln, Gutachten im Auftrag des Bundesamtes für Wohnungswesen, Raum & Umwelt, 2010/1, S. 1 ff.
Bundesamt für Wohnungswesen (BWO), Bern und Bundesamt für Statistik (BFS), Neuenburg, Statistik des gemeinnützigen Wohnungsbaus 2024, abrufbar unter, https://www.bwo.admin.ch/bwo/de/home/wohnraumfoerderung/zahlen-und-fakten/statistik_gemeinnuetziger_wohnungsbau.html, besucht am 1.5.2026.
Bundesamt für Wohnungswesen (BWO), Bern, Wie viele Haushalte haben in der Schweiz Wohneigentum und warum sind es nicht mehr?, abrufbar unter, https://www.bwo.admin.ch/bwo/de/home/Wohnungsmarkt/zahlen-und-fakten/wohneigentumsquote.html, besucht am 1.5.2026.
Cardinaux Basile, Art. 108 BV in: Waldmann Bernhard/Belser Eva Maria/Epiney Astrid (Hrsg.). Schweizerische Bundesverfassung, Basler Kommentar, 2. Aufl. Basel 2025.
Défago Gaudin Valérie, Art. 108 BV in: Martenet Vincent/Dubey Jacques (Hrsg.), Constitution fédérale, Commentaire Romand, Basel 2021.
Scognamiglio Donato, IAZI AG, Standpunkt: Wohnungsknappheit ist kein Naturgesetz, 2023, abrufbar unter, https://www.iazi.ch/news/medien/politik_05_2023.pdf, besucht am 1.5.2026.
Willimann Ivo/Lienhard Melanie/Gmünder Markus/Käppeli Stephan, Wohnungsknappheit in der Schweiz: Ein Überblick, Die Volkswirtschaft vom 6. Februar 2024, S. 48 ff.
Wüest Partner, Wirkung wohnungspolitischer Massnahmen, Auftragsstudie für die Volkswirtschaftsdirektion und die Baudirektion des Kantons Zürich, Zürich 2024.
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