UBS Residential Attractiveness Indicator 2024

Zurich, 22 October 2024 – According to the new Residential Attractiveness Indicator from the UBS Chief Investment Office Global Wealth Management, mid-sized centers in ten of the 13 analyzed regions offer the highest attractiveness for a family with two children and average financial means. These include Locarno and Vevey, as well as the cantonal capitals Aarau, Chur, Fribourg, Lucerne, Neuchâtel, Sion, Solothurn, and St. Gallen. In addition to these mid-sized centers, the list of top municipalities is completed by Basel, Interlaken, and Murten. The two major centers Bern and Lausanne make it into the top three of their respective regions.

Attractive but high-priced centers

The municipalities ranked highest in the Residential Attractiveness Indicator are often expensive places. Their attractiveness has always made them desirable places to live, driving up real estate prices. However, these high housing costs offer something in return. The top-ranked municipalities are characterized by excellent infrastructure. This includes a wide range of shops, good medical care, and easily accessible schools and childcare facilities. The leisure offerings – from numerous cultural facilities to diverse sports opportunities and extensive park and recreational areas – are also varied in the most attractive municipalities.

Due to high housing costs, it is not always the large centers and prestigious low-tax municipalities that top the list in many regions. The quality of infrastructure and quality of life cannot always outweigh the high cost of living. For example, in the Zurich region, the municipalities of Aarau and Schaffhausen surpass the Zurich lake municipalities. In Western Switzerland, Vevey and Morges are more attractive than Lausanne, and in Ticino, Tenero-Contra and Muralto rank ahead of Lugano. There are only a few municipalities that can boast above-average infrastructure and quality of life with below-average housing costs. These include Schaffhausen, Goldach, Rheinfelden, Yverdon-les-Bains, and Delémont.

Housing costs as a hurdle

Even suburban municipalities of major centers offer relatively high residential attractiveness. The most attractive among them (such as Rheinfelden, Ittigen, or Uster) score very well in terms of accessibility and quality of life and often have lower tax burdens or rental costs than the nearby centers. Many of these municipalities have grown significantly in recent years – also because they have been able to create relatively more new housing than many centers, which are characterized by scarcity. However, municipalities with high aircraft noise pollution in the north of Zurich and northwest of Geneva, or those with relatively large industrial areas, remain far from the list of top residential locations.

Even for families with above-average income and wealth, centers are among the attractive residential communities. Additionally, low-tax municipalities are interesting residences for these households, as high housing costs play a minor role for them. For families with below-average income and wealth, rent and tax expenses make up a larger share of total expenses. Therefore, high-priced central municipalities are generally not an option for them. The most expensive locations on Lake Zurich, Lake Geneva, and Lake Zug, as well as famous mountain destinations, are not affordable for these households. Instead, more affordable residential areas outside the central agglomerations are becoming more attractive to them.

Top three per region

Residential Attractiveness Indicator for the average household

Methodology – Residential Attractiveness on three pillars

The Residential Attractiveness Indicator calculates how attractive a municipality is as a place to live for families with two children. Regional comparisons are the focus. A nationwide ranking is omitted because the spatial heterogeneity of Switzerland makes meaningful comparisons between municipalities from different regions difficult. All evaluations are conducted for three household types that differ in their financial situation. Unless otherwise stated, the information refers to the average household with a gross annual income of 145,000 francs. All calculations are based on tenant households to determine the most comprehensive residential attractiveness possible.

To determine the indicator, a weighted average from three thematic pillars (infrastructure, leisure, and housing costs) based on a total of 35 variables is calculated for each municipality and household type. Housing costs receive a higher weight, the lower the household income is. The pillars of infrastructure and leisure offerings are equally weighted.

Detailed information on the methodology can be found in the report.


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