In Switzerland, Most People Rent Forever. They are Fine With It.

I am a mortgage broker. I help people buy homes for a living. So when I tell you that renting sometimes makes more sense than buying, I want you to know I am saying it because I think it is true, not because it is good for my business.

I came across a New York Times piece about Zurich, Switzerland that I have been thinking about since. Switzerland has one of the lowest homeownership rates in the entire developed world, at only about 37-42% of residents owning their homes, compared to 67% in the U.S. and around 70% across Europe. In Zurich, even well-paid finance professionals rent. The average first-time homebuyer there is 48 years old. Here is the part that struck me: most of them are not bitter about it.

Inspired by: The New York Times, November 6, 2023

Why Switzerland Is Different

A few things make Switzerland's situation unique. Property prices are extreme: a studio apartment in Zurich averages over $1 million. The minimum down payment required by law is 20% so even the entry-level ticket to homeownership is $200,000+. Banks apply stress tests using hypothetical rates of 4.5-5%, even when actual rates are much lower. A lot of buyers who could technically afford the payment still do not qualify.

The result is that renting is not a consolation prize there; it is the norm. It is not stigmatized. Tenant protections are strong. Long-term renters do not feel like second-class citizens.

What This Has to Do With You

California is not Zurich. There are, however, real parallels for people here, especially in places like Los Angeles, San Francisco and yes, parts of Orange County. Prices are high. Down payments are steep. Rates are still in the 6-7% range.

If buying a home right now would stretch you uncomfortably thin, if it would drain your emergency fund, lock up all your liquid savings or commit you to a payment that makes you anxious, renting a little longer might be the right call. That is not failure. That is just honest math.

The Swiss perspective is a useful reminder that homeownership is a good decision for a lot of people in a lot of situations but it is not automatically the right move for everyone at every moment. The American narrative around owning vs. renting can feel like a moral judgment. It should not be.

When Buying Does Make Sense

All that said, I do think buying is worth it when the conditions are right. For most people who stay in their home for 7+ years, the equity you build over time is real and meaningful. Owning locks in your housing cost in a way renting does not: your landlord can raise rent but your fixed-rate mortgage payment does not change. In California especially, long-term homeowners have generally built significant wealth.

The question is not "should I buy a home someday?" It is "should I buy a home right now, in this market, at this price, with this payment?" Those are different questions and they deserve honest answers.

If you are trying to figure out where you stand, I am happy to run through the numbers with you. No pressure, no pitch. Just a straight conversation.

Rates shown are for illustrative purposes only and are not a commitment to lend. Actual rates depend on credit profile, loan type, property type and market conditions. Not all borrowers will qualify.