A significant shift in the rental landscape is expected, with two-thirds of tenants potentially qualifying for a rent reduction.

Predicted Decline in Mortgage Rate

The Zurich Cantonal Bank (ZKB) predicts a decline in the benchmark mortgage rate by March 2025 at the latest, which will provide relief to renters who have faced recent increases.

Potential Relief for Renter Households

Approximately one-third of renter households, who experienced two rate hikes last year, will be able to claim at least a portion of the rent increase back.

This may lead to a wave of correspondence directed at landlords, particularly institutional landlords who have historically been more likely to pass on rent increases compared to private landlords.

Differences Between Institutional and Private Landlords

Recent data shows that institutional landlords have implemented rent increases more frequently than private landlords.

This may be due to the nature of the landlord-tenant relationship, with institutional landlords prioritizing financial metrics and private landlords maintaining personal connections with their tenants.

Potential Rent Reductions for Unclaimed Decreases

In addition to those who have faced recent rent increases, another significant group of tenants may seek reductions due to unclaimed rent decreases from previous years.

The anticipated changes in the benchmark mortgage rate could encourage tenants to engage with their landlords and potentially lead to a more favorable rental environment.

Conclusion

The outcome of these developments will become clearer as the 2025 deadline approaches.

Overall, the potential for rent reductions is generating excitement among tenants and may result in significant transformation in the rental market.

Both tenants and landlords will need to navigate this evolving terrain as economic conditions change.