Zurich voters reject three housing initiatives, first projection shows; counter-proposals gain ground

Housing initiatives rejected

Voters in the canton of Zurich were on course to throw out three competing housing proposals at the ballot box on 14 June. The clearest rejection was reserved for the home ownership initiative launched by the homeowners' association (HEV), which would have made it easier for middle-income families to buy their own apartment. The statistical office's first projection put the 'no' share at 73.7 percent. The housing initiative, which demanded a cantonal non-profit housing company to build more affordable homes, was set to be defeated with 58.2 percent against. The tenant protection initiative, designed to prevent landlords from terminating tenancies to empty a building for renovation or sale, was trailing with 54.7 percent no.

Counter-proposals gain ground

Where the initiatives themselves were struggling, the official counter-proposals put forward by the cantonal parliament were finding a majority. The government's alternative to the housing initiative appeared to be passing comfortably, while the counter-proposal to the tenant protection initiative was on a knife-edge with 51 percent yes, according to the projection. The twin results suggest voters were willing to accept a more moderate package rather than the sweeping changes demanded by the initiative committees.

A housing crisis without a quick fix

The vote took place against the backdrop of one of the tightest housing markets in two decades. The canton's vacancy rate has fallen to just 0.48 percent, the lowest level since the years around the turn of the millennium. Rents have climbed steeply, and the scarcity of homes has spilled from the city of Zurich into neighbouring municipalities. The three initiatives attempted to tackle different ends of the problem: boosting owner-occupation, expanding the public housing stock, and strengthening sitting-tenants' rights. With all three looking set to fail, the structural shortage will remain a central policy challenge.

Other ballot measures

Two further cantonal proposals were on the ballot and both were projected to pass. A constitutional amendment to allow maternity, illness or accident leave substitutions in the cantonal parliament was heading for a clear yes (64.8 percent). A separate popular initiative called 'Stop Premium Shock', brought by the Swiss People's Party (SVP), was also on track for approval with 54 percent. It would require the tax deduction for health insurance premiums to be adjusted every two years in line with premium growth, rather than the current practice of tying it to general inflation.