How Zug's political parties plan to solve the housing shortage

The housing shortage in Zug is acute: affordable housing is scarce, and rents are high. In the run-up to the local council elections, the Zuger Zeitung newspaper examined the weak points in the parties' proposed solutions.
 

Rents in the Canton of Zug are constantly rising, vacant apartments are hard to find, and more and more Zug residents can no longer afford to live here. They are forced to move across the cantonal border.

The Zug government (Regierung) has long recognised the housing shortage as one of its most pressing problems. With the Housing Policy Strategy 2030, which was adopted in 2024, it is pursuing three goals: more apartments, more affordable housing, and more housing for the existing Zug population.

To achieve this, it is relying on a range of measures: the simplification and acceleration of building permit procedures, the facilitation of densification, and expanding the promotion of affordable housing. The possibility of establishing so-called "white zones," where relaxed regulations would allow for faster, denser, and taller construction, is also being examined. Prioritising local residents in housing allocation is another consideration. But large parts of the strategy are still being implemented – and their effects are not expected to become apparent until the medium to long term.

During the current election campaign, virtually all the political parties in Zug have promised to address the housing shortage. But do their proposals stand up to critical scrutiny? The Zuger Zeitung newspaper confronted the parties with the following pointed arguments regarding their current housing policies.

Social Democratic Party (SP): There is also an acute housing shortage in left-leaning cities like Zurich and Geneva, where the governments have promoted cooperatives and non-profit housing for decades and intervene more actively in the housing market.

Zari Dzaferi, President of the SP Canton Zug: "This argument is too simplistic. Zurich and Geneva don't demonstrate the failure of non-profit housing, but rather its limitations in a rapidly growing market. Around 18% of all apartments in Zurich are cooperative housing. Together with other non-profit and municipal housing, the share is around 27%. Geneva has been pursuing the goal of achieving 20% ​​non-profit housing for years, and is currently at more than 12%. In the canton of Zug, by contrast, the share of cooperative housing is less than 3%”.

“Despite the housing shortage, tens of thousands of households in Zurich and Geneva benefit from lower rents and greater housing security. Before Zug criticises these models, the canton should use its substantial equity capital more consistently in favour of affordable housing. The lesson is not to promote fewer cooperatives, but more. With the support of the Alternative List (ALG), the Social Democratic Party (SP) has been working on this for years, despite opposition from the centre-right”.

An example of densification: the "Im Blatt" development in Neuheim.      Photo: Stefan Kaiser
It’s undeniable that construction is happening in the Canton of Zug – but is it efficient enough and is it accessible to all segments of the population?                       Photo: Jakob Ineichen
 

The Green Liberal Party (GLP): The GLP wants economic growth and immigration without sacrificing the landscape and character of towns and villages to construction. But even densification has its limits. Sufficient affordable housing is not created in this way.

Tabea Estermann, President of the GLP Canton Zug: "It would be squaring the circle to believe in a simple solution to the housing question. A growing economy creates prosperity and opportunities: stagnation does not. An aging society, in particular, needs skilled immigration. For us liberals, one thing is clear: diversity based on shared values ​​is a strength.

Townscapes that foster a sense of identity and natural recreational areas are valuable. But with higher density, numerous other areas can become more vibrant and thereby more attractive. The Old Town of Zug demonstrates this: it is universally popular and boasts one of the highest density ratios in the canton. That's how densification should be carried out. The pressing problem is the pace: zoned areas are being developed too slowly.

And ultimately, what matters is what's left in your pocket after housing, health insurance, and taxes. That's why we want to provide targeted, direct support to those households rooted in the Canton of Zug, for whom this overall package no longer adds up”.

Swiss People’s party (SVP): The housing shortage won't be solved by limiting immigration; it's hardly manageable at the cantonal level anyway. At the same time, the attractive business location that is desired by the SVP attracts additional workers – and thereby increases the pressure on the housing market.

Philip C. Brunner, President of the SVP (Swiss People's Party) of the Canton of Zug: "The criticism is too simplistic. Zug has a quantity problem: a vacancy rate of 0.42%, the lowest in Switzerland. In 2025, the population grew by around 1,200 people, more than four-fifths of which came from net migration. This net migration is almost entirely due to immigration from abroad (ex-pats). Zug is practically in balance with the other cantons, however. Anyone who ignores this demand is missing the point.

Immigration can only be controlled at the federal level, and the SVP is the only party consistently fighting for this. Our answer at the cantonal level is: faster and denser construction, shorter procedures, fewer opportunities for obstruction, and consistent densification along transport routes.

We see no contradiction with the needs of the economic location: Zug thrives on value creation per capita, not on population figures. Anyone who weakens the location loses the resources for infrastructure and housing. Public housing construction and rent control, on the other hand, don't create a single additional apartment."

Mitte Party: Neither the "Zug First" iniriative, i.e. the preferential treatment of Zug residents in housing allocation, nor tax relief for renters and homeowners will create additional living space for the middle class. The Mitte Party is merely redistributing the scarcity in a different way, rather than solving it.

Manuela Käch, President of the Mitte Party of the Canton of Zug: "With the above-mentioned measures, the scarce housing in the canton is at least being distributed among our local population, so they don't have to move away. In order to address the shortage, we also demand that more housing should be built.  For example, with faster and more efficient permit processes, fewer objections, and new approaches such as "white zones", or covering highways to create new building land for affordable housing”.

Liberal party FDP: the FDP advocates faster and denser construction. But this doesn't automatically lead to affordable housing on the expensive land in Zug. Private developers only build what's profitable to them – and not necessarily what the middle class needs.

Daniel Gruber, President of the FDP Canton Zug: "The current population growth is increasing the demand for housing. Anyone who wants affordable housing must do one thing above all: increase the supply! Densification is the most efficient way to create more, and above all, affordable housing on scarce and expensive land. To enable faster construction, building permit processes must be simplified and accelerated. This requires the involvement of everyone in the market – not just politicians.

The middle class depends on affordable housing. The Housing Policy Strategy 2030 (Wohnpolitische Strategie) of the Zug government therefore also includes adjustments to housing subsidies for tenants. The revised Planning and Building Act aims to create incentives and support developers who include affordable housing in their projects. These changed framework conditions are intended to make building affordable housing in the Canton of Zug attractive and economically viable. The FDP (Liberal Party) believes this is the right and effective approach”.

ALG/CSP (Alternative List Zug/Christian Social Party): The party belives that the housing market should be more strictly regulated by giving priority to local people (right of first refusal: Vorkaufsrecht) and through other government interventions. This alone will not create any additional housing, however. And if investments become less attractive, there is a risk that even less construction will take place.

Luzian Franzini, President of the ALG Canton Zug: "Housing is a basic human need that cannot be treated like a commodity. In Zug, we are currently experiencing a failure of the market, resulting in skyrocketing land prices and rents. Non-profit housing developers want to create affordable housing, but their biggest obstacle is the lack of access to building land. The right of first refusal comes into play here, allowing municipalities to intervene in the sale of land – at the already negotiated market price.

The federal government also confirms the effectiveness of this instrument: "The right of first refusal is a proportionate intervention, legitimised by the public interest." It's not about overriding the market, but about correcting it. The right of first refusal secures strategically important land for the public, which can then be leased to create permanently affordable housing. This ensures that families in Zug can continue to afford to live here”.