What income is required to buy in Zurich, Basel, Bern, and Lausanne

The half-year study by Moneypark provides figures for the second quarter of 2026 that can be summed up in a single line. Single-family houses have risen by 6.9 percent year-on-year, condominiums by 5.9 percent, driven by a zero-interest-rate policy from the central bank and chronically limited construction activity. However, the actually relevant finding for buyers is not found in the percentages, but in the resulting income requirements. Anyone wanting to finance property today in Zurich, Bern, Lausanne or Basel must bring in a gross income that clearly stands out from the median wage.

The affordability formula remains the filter

Every financing is based on notional affordability. Banks calculate using an interest rate of around five percent on the mortgage, regardless of the fact that 10-year fixed-rate mortgages are currently well below two percent. In addition, there are maintenance and ancillary costs of about one percent of the property value per year, plus the amortization: The share of the mortgage that exceeds two thirds of the lending value must be repaid within 15 years. For the financing to be considered affordable, the sum of these three items may not exceed a third of gross income. This self-regulation by the Swiss Bankers Association is a strict requirement, with no room for negotiation.

For a property worth one million francs with a maximum lending of 80 percent, this means a mortgage of 800,000 francs. The notional interest costs amount to 40,000 francs per year, the amortization to the two-thirds limit about 8,900 francs, and maintenance and ancillary costs 10,000 francs. In total, this results in a notional annual burden of just under 59,000 francs. The required gross income for affordability is therefore around 177,000 francs. Each price increase of 100,000 francs shifts this threshold by another approximately 17,500 francs.

Four centers, four realities

National averages quickly become footnotes at the place of purchase. Anyone looking for a medium-sized condominium in Zurich is currently calculating with market prices between 1.4 and 1.6 million francs. At 1.5 million francs and a mortgage of 1.2 million francs, this means a notional annual burden of around 88,000 francs and thus a required gross annual income of around 265,000 francs. The median of full-time gross incomes in the canton of Zurich is around 90,000 francs, according to the Federal Statistical Office. Even two full-time earners at Zurich's median remain with 180,000 francs clearly below this threshold. Without two clearly above-average incomes or equity considerably above the regulatory 20 percent, the calculation does not work.

In Basel, the prices for a comparable apartment are much more moderate, typically 900,000 to 1.1 million francs. For a million francs, around 177,000 francs of gross income is needed. A single earner just above the regional median, together with a second person working sixty percent, is usually no longer sufficient. Realistically, two mostly full workloads with incomes around the median or above are required. The buffer to the 80 percent maximum loan-to-value also remains slim.

Bern sits between the two poles. Prices for a medium-sized, well-maintained condominium are generally between 850,000 and one million francs. A purchase at 900,000 francs requires, with full lending, around 159,000 francs of gross income. Median Bernese incomes are somewhat below Zurich's level, so the calculation works with a classic dual full-time income, though with little margin.

In Lausanne, buyers face a hybrid market picture. Prices are rising more slowly than in German-speaking Switzerland, but the level is already very high. A medium-sized condominium costs between 1.1 and 1.3 million francs in Lausanne or the surrounding communities. At 1.2 million francs, about 212,000 francs of gross income is needed. The median Vaud salary only supports this level for significantly above-average positions, and even then usually only with a full dual income.

Why the 20 percent equity is the second filter

Even those who meet affordability often fail at the equity hurdle. For a property worth one million francs, at least 200,000 francs are required, and for Zurich quickly 300,000 francs or more. According to self-regulation, at least half of that must be "hard"—meaning it cannot come from occupational pension withdrawals. For a property at 1.5 million francs, this means 150,000 francs of genuine savings.

In practice, this requirement acts like an age barrier. If you are thirty years old with a mid-level employee salary, you can reach the necessary capital only through inheritance, gifts, or a very disciplined savings period over ten years. This effect also appears in the Moneypark study: the median loan-to-value for first-time buyers, according to other market data, is currently around 79 percent—very close to the regulatory maximum. We've discussed the resulting risks in detail in our article about first-time buyers at the 80 percent limit.

How many Swiss households can finance

Statistics allow for a rough estimate. Around 40 percent of full-time/full-time dual earners in Switzerland reach a combined gross income of 180,000 francs or more. Among dual-income households with one part-time worker, the share is around 20 percent, while for single-person households it is significantly lower. This filter matches almost exactly the income required for the average purchase price of a condominium of about one million francs nationwide, which is around 177,000 francs. Thus, only a minority of households qualify for a conventionally financed purchase at the average price. In Zurich, where the requirement climbs toward 265,000 francs, this circle shrinks considerably further, while Basel and Bern are accessible to noticeably more households.

The study also shows that the share of Saron financings in German-speaking Switzerland has risen above 32 percent, while in western Switzerland it is only about ten percent. First-time buyers more often choose a fixed-rate mortgage, because notional security is more important for bank review than the interest advantage. The Saron trend in German-speaking Switzerland is more strongly driven by renewals and rebalancing. Hypothek.ch has in this article reported on this.

Market dynamics do not dampen price pressure

A look at supply explains why prices are still rising, despite tight affordability ranges. The number of apartments completed nationwide each year is at a historic low of around 42,000 units. Demand continues, driven by immigration of around 80,000 people per year, stable employment growth, and an interest rate environment that makes buying more attractive than renting from a calculations perspective. With a base rate at zero percent and a ten-year fixed mortgage below two percent, a buyer’s monthly burden often remains lower than the comparable rent.

However, the low number of new contracts in the first half of the year shows that market behavior is changing. The share of new financings in total brokered volume has fallen from 47 to 37 percent. Thus, price pressure is filtering buyers without actually reducing prices. The buyers who make it through do so with a stronger capital base and a much clearer negotiating position versus sellers.

Regional shift as its own signal

Looking at the half-year data also reveals a slow redistribution. While Zurich, Zug and Lucerne still lead the price list, small and medium-sized cities in central Switzerland as well as parts of eastern Switzerland are noticeably catching up. In Romandy, the dynamics are more subdued, making the purchase level more attractive, though some cantonal ancillary costs are significantly higher. Anyone flexible can still find options between the four major centers with sometimes five- to tenfold variation in price per square meter.

Outlook for the second half of the year

Most market observers expect prices to continue rising in the second half of 2026, but at a slower pace. The tight affordability grid will become a hard barrier, beyond which demand will collapse. The central bank has reached the bottom with a zero percent base rate, making further rate cuts unlikely. Should core inflation rise, interest rate expectations could come from another direction: capital market rates could rise and fixed mortgages could become more expensive. The calculation remains the same for prospective buyers in the major centers: a gross income well above the median, equity well over 20 percent, and a property that the bank does not deem overvalued.

Sources

• "Moneypark/PriceHubble: Finance and Real Estate Update H1 2026, August 7, 2026"
• Cash.ch: Zero interest rates drive Swiss property prices – Finance and Real Estate Update from Moneypark and PriceHubble, August 5, 2026
• Federal Statistical Office: Swiss Wage Structure Survey (LSE) 2024, Press Release of November 25, 2025
• Federal Statistical Office: Wage structure by major regions