Minimum occupancy, income limits and assets: what cooperatives’ rules aim to achieve

In principle, apartments in cooperatives are open to everyone. In practice, however, the statutes of most cooperatives in Zürich contain guidelines regarding occupancy and the financial means of tenants. Here we explain where these cooperative rules come from, what they aim to achieve at a societal level, and what they mean for you.

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Use of living space and occupancy: minimum and target occupancy

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Occupancy refers to the number of people living in an apartment. There are about 4 million households in Switzerland. The composition of household types in Switzerland has changed dramatically in recent decades. Since 1970, the number of single-person households has almost quadrupled (they now account for about one third!), while the number of couples without children has doubled. Over the same period, the number of households with children under 25 has remained roughly stable. Accordingly, the amount of living space consumed per person has also increased sharply: in the 1970s, we in Zürich lived on an average of about 30 m2 per person, today it is just over 40 m2. These developments contribute massively to the housing shortage. They have various causes, including an aging society. For example, according to the NZZ, in the canton of Zürich 15% of single-family homes are occupied by just one person, more than 60% of whom are over 65. This is referred to as severe under-occupancy. A dwelling is considered under-occupied if the number of rooms is more than 1 greater than the number of residents. A 4-room apartment is therefore under-occupied if fewer than 3 people live in it. In a 3-room apartment, at least 2 people must live there, otherwise it is under-occupied.

Avoiding under-occupancy is an important tool in combating the housing shortage in Zürich. This is where cooperatives come in. They want as many people as possible to find an appropriate home. That is why they have occupancy guidelines. Minimum occupancy ensures that an apartment is not under-occupied. In other words, the following formula is applied: number of people + 1.5 = maximum apartment size. So if there are two of you, you can rent a 3.5-room apartment. For a family with 2 children, a maximum of a 5.5-room apartment is possible. Some cooperatives also have a target occupancy. This is the number of people the cooperative would ideally like to have in the apartment. It usually corresponds to the number of rooms (e.g., 4 people in a 4-room apartment). Cooperatives also pay attention to avoiding excessive consumption of apartment floor area. We looked at listings for vacant cooperative apartments in Zürich over the past few months. With minimum occupancy (i.e., 3 people), the average consumption of living space in a 4.5-room cooperative apartment in Zürich is 33 m2 per person. In 3-room cooperative apartments, the average space consumption with minimum occupancy (2 people) is 32.5 m2. That is clearly less than the overall average. By avoiding under-occupancy and promoting moderate use of living space, cooperatives actively help combat the housing shortage.

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Income limits

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Many know the rule of thumb that you should not spend more than a third of your income on housing. But a third is actually a lot; a quarter would likely be preferable. If you browse various online portals, you quickly realize that even for people earning the Swiss median income, it isn’t easy to find an affordable apartment in Zürich—especially when daycare costs and so on are added. Fortunately, there are cooperatives! Here, rents are on average about 800 francs per month cheaper than in privately rented apartments (our savings calculator shows you the real data). To ensure the right people benefit—namely those who would otherwise really struggle—some cooperatives (and also municipal apartments) have income limits. A person is only eligible if their taxable income (important: taxable, not gross income!) is below the limit. It is usually a multiple of the rent, often about four to at most six times—matching the rule of thumb mentioned above. If the rent for a 3.5-room apartment is, for example, 1'500 francs per month, the income limit might be in the range of four to six times that, i.e., a taxable income of 72'000–96’000 francs for the entire household (i.e., all persons combined). From these figures you can see that cooperatives generally aim to offer affordable housing to people with low to medium incomes. Cooperatives also strive for a mix in their developments, so it may well be that you have a chance even with a slightly higher income, but you are definitely not the target group.

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Assets and cooperative apartments

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Many cooperatives rent apartments only to households with assets of less than 200'000 francs. How does this compare to the general population? We checked with the Federal Statistical Office and analyzed Switzerland’s wealth distribution. At first glance, we are all extremely rich, since the average wealth is around 600'000 francs! However, a closer look at the statistics shows that there is considerable inequality here. Indeed, about 0.36% of people (just under 20'000) own a hefty 34% of the country’s total wealth! The median wealth (meaning half the population has more, the other half less) is about 160'000 francs. In view of this figure, cooperatives’ asset limits make sense. If you have 200'000 in the bank, you definitely belong to the richer half of the country and may not need an affordable apartment as urgently as someone with fewer or no reserves.

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Conclusion

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As a society, we are using more and more space per person, living in households with fewer and fewer people, and getting ever older. Moreover, unfortunately, not as much is being built as would be necessary. These factors exacerbate the housing shortage. In addition, income and wealth in our country are not evenly distributed. This results in a market where it is very difficult for people who are financially less well-off to find suitable housing. Cooperatives counter this situation. They combat under-occupancy and offer affordable housing for people with lower and middle incomes. Apartments like these are, of course, in high demand. To simplify your search, you can use GenossenSchaffen.ch. Our search subscription sends you all listings directly to your email inbox. You will also find on our website all the cooperatives’ waiting lists and new construction projects, as well as plenty of tips and tricks for your application.