About Switzerland
History of Cooperative Housing in Switzerland
Cooperative housing in Switzerland began to take root in the early 20th century, particularly during and after World War I, when housing shortages and speculation became acute in urban areas. Zurich played a pioneering role: in 1907, the city’s first housing cooperative, Waidberg, was founded by socially engaged citizens seeking to provide affordable, secure housing for working families.
After World War II, cooperative housing gained strong support at both the municipal and federal levels. Governments offered favorable land leases, tax incentives, and access to public loans, especially during times of economic hardship and urban expansion. Today, housing cooperatives are seen as a pillar of Switzerland’s non-profit housing sector and a critical alternative to speculative private markets.
One of the oldest housing cooperatives founded in 1919, Freidorf in Basel, received a low-interest loan of 7,5 million Swiss francs. The funding came from a fund made up of a tax placed on companies earning excess profits from activities with the war, a tax to be spent on projects for public good.
In 1991, at a time of high interest rates and overly prudent banks, the three umbrella non-profit/cooperative housing associations founded the Bond Issuing Co-operative (BIC), in collaboration with the Federation Housing Office. In 2011, 375 housing cooperatives were members of BIC, 263 of them participated in bond issues in 2011.
The three umbrella organisations adopted a Charter called the “Charter of the non-profit housing organisations of Switzerland”. This Charter lays down the principles guiding the actions of non-profit and cooperative housing organisations in Switzerland. For example, no speculative profits, good-quality affordable and sustainable housing, integration of disadvantaged households and tenant participation and self-determination.
FGZ_Grünmatt: New dwellings „Grünmatt“ by Familienheim-Genossenschaft Zurich
Origins of the Cooperative Movement
The cooperative movement in Switzerland, like in much of Europe, emerged in the 19th century in response to rapid industrialization, rising urban populations, and worsening living conditions. Early cooperatives aimed to empower workers and tenants by pooling resources to access goods and services—especially decent housing—at fair prices. Inspired by similar movements in Germany and the UK, Swiss cooperatives began as grassroots efforts to promote social solidarity and economic self-reliance.
Cooperative Housing in Switzerland
Legal and Policy Context
In Switzerland, the right to housing is enshrined in the Constitution under Articles 108 and 41 (Paragraph 1). This right is further reinforced by the Federal Housing Act of 2003 and various cantonal laws, which collectively promote the development of housing cooperatives and social housing. While not all cantons have adopted comprehensive housing policies, some have implemented stronger legal frameworks than the federal government.
The cooperative housing sector operates in close collaboration with the Federal Housing Office (FHO) and local authorities. One prominent mechanism supporting this partnership is the Public-Cooperative Partnership, under which communes provide cooperatives with land through long-term lease arrangements (known as a “right of use”).
Characteristics of Swiss Housing Cooperatives
Swiss housing cooperatives have proven to be both socially effective and economically sustainable. They are well-maintained, offer below-market rents—typically 20% lower than private rentals—and promote environmental responsibility by incorporating sustainable building and renovation practices.
While most cooperatives are small (70% have fewer than 100 units), some operate at a much larger scale. The largest, in Zurich, includes around 5,000 units. On average, a Swiss housing cooperative manages about 138 units.
There are two main types of housing cooperatives in Switzerland:
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Membership cooperatives: Tenants are members of the cooperative, granting them long-term security, participation rights, and affordability.
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Entrepreneurial cooperatives: Tenants rent from the cooperative but are not members and have no governance rights.
The following attributes apply primarily to membership cooperatives:
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Democratic governance: All members have one vote at the general assembly, regardless of their shareholding.
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Non-profit operation: Rents are cost-based. No dividends are distributed, and surplus funds are reinvested.
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Security of tenure: Members enjoy long-term, stable housing.
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No personal equity: Members buy shares to gain access but have no equity in the unit. Shares are returned at face value upon departure.
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Volunteer leadership: Boards are typically composed of 5–7 members elected for four-year terms. Only the largest co-ops have paid administrative staff.
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Social integration: Many co-ops offer shared amenities such as childcare, health services, and communal activities.
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Occupancy control: Some co-ops reassign smaller units to members who are ‘over-housed’ to optimize space usage.
The Role of Cooperatives in Urban Development
Cooperative housing plays a vital role in urban renewal and planning. In cities like Zurich, cooperatives have become key partners in developing sustainable, inclusive communities. They contribute to long-term urban strategies and help mitigate speculative pressures in high-cost housing markets.
Challenges Facing the Sector
Despite their success, Swiss housing cooperatives face growing challenges:
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Rising construction costs and scarcity of land have made new development increasingly difficult.
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Demographic shifts—including a surge in single-person and senior households and a fourfold increase in immigrant households over the past 30 years—require cooperatives to adapt their housing models.
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Aging stock: Many buildings constructed in the post-war era and the 1970s now require extensive renovation or replacement.
These pressures underscore the need for continued public support and policy innovation.
Hunziker-Areal, Zurich
Financing
Cooperative housing in Switzerland is generally financed through a mix of:
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Member equity contributions (entry fees and shares)
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Long-term bank loans or mortgage financing
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Public subsidies or low-interest loans (depending on the canton or municipality)
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Leasehold arrangements where municipalities lease land to co-ops at reduced rates
Importantly, cooperatives reinvest surplus funds into building maintenance, expansion, or new development. This closed-loop reinvestment strengthens long-term financial stability and helps keep rents below market.
Some cantons provide financial support by providing:
- Subsidy to reduce the rents. The amount of subsidy provided takes into account the financial situation (annual income and wealth) of the member and occupation norms;
- Land to build housing cooperatives in the form of a “right of use”.
In buona compagnia: housing community of elderly people in the canton of Graubunden
Legal Framework
Cooperative housing in Switzerland operates under the Swiss Code of Obligations, which governs cooperative societies as legal entities. Co-ops must register with cantonal authorities and maintain transparent financial practices, including regular audits. In addition, municipalities and cantons may set their own guidelines for allocating subsidies or leasing public land.
The Cooperative Housing Promotion Act (Wohnbau- und Eigentumsförderungsgesetz) provides a legal basis for federal support, including access to low-interest loans and guarantees through the Federal Office for Housing (FOH). However, housing remains largely a cantonal and municipal responsibility.
The Co-operative Housing Movement
National Level
At the national level, the movement is represented by WBG Schweiz (Wohnbaugenossenschaften Schweiz), the umbrella association for housing cooperatives. It provides advocacy, training, legal support, and a platform for networking among over 1,200 cooperative housing providers. WBG Schweiz campaigns for stronger public support, land access, and legal protections for cooperative housing across the country.
Zurich: A Cooperative Stronghold
Zurich has long been the hub of the Swiss cooperative housing movement. Today, one out of every five residents in Zurich lives in cooperative housing. The city actively supports co-ops through land leases, planning incentives, and participation in new development areas.
Between 2001 and 2003, 23% of newly built housing units were housing cooperatives. In 2008, housing cooperatives built 1,000 new units in Zurich.
Notable Zurich cooperatives include:
- ABZ : Founded in 1916, ABZ is Switzerland’s largest housing cooperative. It provides affordable, sustainable homes to over 12,000 people in Zurich, emphasizing social inclusion, resident participation, and community development. ABZ reinvests all profits into maintaining and growing its housing stock, staying true to its non-profit mission.
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Kalkbreite: A mixed-use development with residential, cultural, and commercial spaces designed around sustainability and social inclusion.
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Mehr als Wohnen: An innovative project built on former industrial land, blending co-housing models, ecological design, and strong community governance.
Zurich’s approach has become a model for other cities, showing how cooperative housing can play a structural role in managing urban growth and affordability. Furthermore, housing cooperatives normally work with leading architects when designing new construction. Therefore, most of the housing cooperatives are examples of outstanding architectural and ecological quality.
Geneva: Facing High Demand and Limited Space
In Geneva, the cooperative housing movement is less dominant but growing. The city faces some of the highest housing costs in Switzerland, driven by limited space and speculative pressure. In response, Geneva has prioritized social and cooperative housing in urban planning and has started granting long-term leases of public land to cooperatives.
While the cooperative housing share in Geneva is still modest compared to Zurich, the city has introduced land-use quotas and development incentives to encourage new co-op construction. Organizations such as CODHA (Coopérative de l’Habitat Associatif) play a key role in promoting participatory, community-based housing projects that address Geneva’s acute affordability challenges.
La Jonction-Geneva
Resources Tagged "Switzerland"
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Community Global Report
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