Key facts:
- At 37%, the home ownership rate in Switzerland remains low by international standards, with major differences between urban and rural regions
- Baby boomers are shaping the real estate market with a high home ownership rate, are thinking about age-appropriate living and are increasingly looking for barrier-free properties.
- Millennials and Generation Z prefer flexible rental models, sustainable and urban living concepts with digital processes.
While demand continues to outstrip the supply of real estate, the needs of owners and residents of different generations are changing at the same time. From the security-oriented Baby Boomers to the strategically-minded Generation X to the discerning Millennials and the flexible Gen Z: each age group has its own priorities and specific expectations. These developments pose new challenges for the real estate market, but also offer opportunities.
Baby boomers (1946-1964): focus on security and quality of life
Boomers are strongly influenced by the experiences of their parents from the so-called Silent Generation, who lived through the Second World War. This has created a pronounced need for security and stability in life among this generation. They own a large proportion of residential property – often acquired and maintained over decades. According to a BWO , the home ownership rate is over 40%. Especially in rural regions, where larger properties and detached houses dominate. Needs change with increasing age: more central locations, less maintenance and accessibility all come to the fore.
Baby boomers today are faced with the question of how they should use their property sensibly in the future or how they should organize their property. Selling and downsizing to an age-appropriate home is often a solution that creates quality of life and financial flexibility. Alternatively, renting out their property allows them to earn a passive income and keep the property for their descendants. In many cases, however, owners hold on to the property – often for emotional reasons, but also due to a lack of replacement.
Market opportunities and challenges: The release of larger living spaces makes it easier for younger families to access suitable living space. At the same time, more senior-friendly forms of housing are in demand. Shared communities are becoming increasingly popular as innovative living concepts.
For many people, owning their own home is a key investment in their lives and is more than just a house or apartment. Should the property be sold, rented out or remain owner-occupied? More on the blog
Generation X (1965-1980): Stability and strategic investments
As young adults, Generation X experienced the effects of the financial crisis, which gave them a strong awareness of the uncertainties of the market and made security a key priority for them. At the same time, they are characterized by their focus on individuality and consciously setting themselves apart from the life paths of their parents. With their strategic way of thinking and acting, this generation took advantage of the favorable interest rates in recent decades to invest in real estate – whether as their own home or as a capital investment. Centrally located apartments that offer easy access to work and leisure facilities remain in demand.
People who already own residential property use their financial resources to invest in additional properties. These investments are often aimed at regions where real estate prices are affordable and long-term increases in value appear possible.
Market challenges: The high real estate prices in cities and conurbations remain an insurmountable hurdle for many Gen-X buyers, leading to increased migration to the surrounding areas. However, the infrastructure there often fails to keep pace with rising demand. At the same time, many owners are faced with the challenge of making their properties more tax and financially viable – particularly with regard to inheritance and wealth tax
Millennials (1981-1996): Self-realization and urban living spaces
Millennials have a very unique perspective on real estate. Shaped by the digital world, their way of thinking and working is fundamentally different from previous generations. Self-fulfilment, leisure and personal well-being are at the forefront of their minds – priorities that are also reflected in their requirements for living space. They prefer energy-efficient buildings, smart home technologies and sustainable building materials. However, the short supply and high barriers to entry make buying a property considerably more difficult, which often results in a large gap between requirements and possibilities.
Forms of housing such as shared living are becoming increasingly important for millennials, as they offer both flexibility and community and are affordable. Many of this generation prefer to invest in personal experiences such as travel or further education rather than committing to a long-term real estate loan.
Market challenges: The millennial generation faces considerable barriers to entry when it comes to buying a home. While a middle-class salary was often sufficient in the past, this is no longer nearly enough. Long-term solutions are needed that both offer alternative investment opportunities and promote the creation of suitable housing to facilitate access to property.
Generation Z (1997-2012): Digital natives and urban flexibility
Gen Z, which has grown up with digital technology, attaches great importance to fast, uncomplicated solutions – solutions at the click of a button. Their everyday lives are characterized by mobility, flexibility and a technology-driven lifestyle. Although most Gen Z are currently still in education or studying, clear trends are emerging in their relationship to living space. Sustainability, central locations and modern technologies such as smart homes play a central role in their ideas of living. Long-term ownership is not yet an issue for the majority of this generation, but rental models with flexible conditions and innovative forms of living such as co-living are attractive.
Challenges and opportunities: Gen Z is caught between high expectations of living space, financial possibilities and a shortage of supply. As long as the supply of real estate is lower than demand, they will have to adapt to market conditions. Should the market situation change, providers will be faced with the challenge of realigning their offers to the requirements of this generation. Forward-looking planning and future-oriented real estate concepts offer opportunities – both for today and for the future.
Conclusion: Individual needs of the generations
The home ownership rate in Switzerland was around 37% in 2022 and thus remains low by international standards. Generations are faced with the challenge of finding a balance between their diverse needs, individual priorities and existing market conditions. High entry-level real estate costs continue to represent a considerable hurdle, as they are significantly higher today than in the past. At the same time, rising rental costs are making alternative forms of living such as shared or co-living even more attractive, especially for younger generations.
Sustainable real estate strategies must address the challenges of scarce supply and high entry costs as well as create a market offering that is geared towards the changing priorities of generations. Technological advances and sustainable approaches offer the opportunity not only to meet current requirements, but also to make the real estate market more resilient and fairer in the long term.
Data are without guarantee. The information on these Internet pages has been carefully researched. Nevertheless, no liability can be assumed for the accuracy of the information provided.