The housing shortage is driving people out of the big cities. But for how much longer?

Housing shortages in Swiss metropolises like Zurich are forcing households to migrate to the surrounding areas. This trend supports demand in agglomerations, but could reverse if new building regulations are introduced. Real estate owners should critically examine the sustainability of this regional shift.

Zürich, October 22, 2026 – The ongoing housing shortage in Swiss metropolises, above all in Zurich, is forcing more and more households to migrate to the surrounding areas. This development is currently providing massive support for real estate demand in agglomerations and rural peripheral areas, as current data on internal migration proves. While core cities are losing their attractiveness for the middle class due to limited new construction capacities and high rental prices, the surrounding municipalities are benefiting from a steady influx. However, experts point out that this trend could reverse if economic conditions change or urban building regulations are relaxed. Real estate owners and investors are therefore well-advised to keep a critical eye on the sustainability of this regional shift in demand.

The dynamics of the real estate market have far-reaching consequences for the infrastructure and the local economy in the surrounding areas. Due to the influx of high-purchasing-power households from the urban center, prices for home ownership and rents are also rising in the previously more affordable suburbs. This displacement effect means that the search radius for affordable living space is becoming ever larger. In parallel, the need for transport links and services in the influx areas is growing. For those fleeing the city, this often means a compromise between quality of life in the countryside and longer commutes to the workplace. The question of mobility thus becomes a central factor for the stability of real estate prices in peripheral areas.

Structural change and market risks for real estate owners

For academic further education and the field of management training, this development results in an interesting mix of circumstances. MBA candidates and young professionals often face the challenge of reconciling their career planning with housing costs in economic centers. The high cost of living in cities like Zurich influences the decision for or against on-site classroom studies. At the same time, spatial decentralization means that hybrid study models and decentralized campus solutions are gaining in importance. Anyone investing in real estate today or acquiring residential property in the surrounding area must take into account that urbanization could gain momentum again if the housing market eases or if there is an increased requirement to return to offices in city centers.