In principle, the state has two subsidy approaches at its disposal to relieve households of their housing costs. The first option is a supply-side subsidy, which aims to subsidize housing directly. Such subsidies can go to profit or non-profit providers, who in return are bound to certain conditions when renting out their properties. The alternative to supply-side subsidy is demand-side subsidy, which provide direct support for households in need to cover housing costs. Those are essentially housing allowances. Such subsidies are already paid out in Switzerland as part of social welfare.

Within the study, the Swiss housing market was analysed with regard to the affordability of housing, a qualitative and quantitative assessment of the subsidy approaches was carried out and the possibility of a system change from property subsidy to housing allowances was clarified. To this end, the scope of the subsidy requirement was estimated and the effects of increased housing allowances on the housing market were analysed.

Methods

• Literature review
• Descriptive statistics
• Research of policy measures
• Quantification of policy measures
• Modelling of support systems

Publication

• Study