A study by the Raiffeisen bank is suggesting the current housing crisis is being caused by pensioners living in apartments that are far to big for them – and the rental law is to blame.
The bank says it’s a ‘grotesque misallocation’.
Older people, tend to stay in the home they’ve lived in with a family. But when the children leave, they have more space than they need. But as their rent can’t rise too high on the same contract, they end up with a bargain and moving to a smaller place would probably cost them more.
Those aged 45 or over make up nearly half the population – but only account for about a quarter of house moves.
The study showed if older people moved to an apartment more suited to their needs – it would free up space for a further 450,000 people.
The bank concludes the problem is only going to get worse with an aging population, increasing immigration and limited construction.
Heavy snow causes chaos
Geneva car tax issue dominates Grand Council
Franc strongest against euro
SRG/SSR faces massive cuts
People now back nuclear power
4m e-vignettes sold
