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Swiss Voters Reject Law Enhancing Landlords’ Powers Over Subletting

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Swiss voters have narrowly rejected a proposed legal change that would have granted landlords greater authority to restrict subletting by tenants, including through platforms like Airbnb. Preliminary results from Sunday’s referendum show that 51.6% of voters opposed the change, which was passed by parliament in 2023.

The Controversial Proposal

The proposed law aimed to address concerns that tenants were increasingly subletting their properties via Airbnb, thereby disrupting the rental market. Supporters of the change argued that it was necessary to prevent such practices, which they claimed were contributing to housing shortages in some areas. However, opponents, led by a major tenants’ association, countered that much of the Airbnb activity involved landlords themselves subletting their properties, rather than tenants doing so.

Kathrin Anselm, the head of Airbnb in Switzerland, denied the company’s involvement in creating a housing crisis, stating earlier this month that Airbnb had no influence on the residential rental market in Switzerland.

Broader Voting Trends

In addition to rejecting the subletting law, Swiss voters also voted down a separate proposal that would have given landlords more power to terminate leases when they wanted to use the property themselves. This proposal was also part of the same round of national referendums, which highlighted ongoing debates over tenant rights and housing policies in Switzerland.

These issues are particularly significant in Switzerland, where a large proportion of households—most recently recorded at the end of 2022—live in rented or cooperative housing.

Other Referendum Results

In other results, voters rejected government plans to expand Switzerland’s motorway network and, in a local referendum in Zurich, decided against removing gender-inclusive language from the city’s official texts. These results reflect the strong role of direct democracy in Swiss politics, with voters regularly being asked to weigh in on key legislative issues.

 

Mortgage Rates Surge Following Trump Victory, Causing Housing Stocks to Drop

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President-elect Donald Trump’s victory has led to a noticeable increase in U.S. 10-year Treasury yields, which has subsequently impacted mortgage rates. On Wednesday, the average rate for a 30-year fixed mortgage climbed by 9 basis points to 7.13%, according to Mortgage News Daily. This rate marks the highest since July of this year, though the increase was somewhat lower than some market analysts anticipated.

Matthew Graham, COO of Mortgage News Daily, noted that bond traders had expected rates to climb if Trump won, especially in the case of a Republican majority in Congress. While this majority is still uncertain, Trump’s victory alone has already pushed rates higher.

This spike in mortgage rates has adversely affected housing stocks. Major homebuilders such as Lennar, D.R. Horton, and PulteGroup saw their stocks fall by about 5% in midday trading. Retailers associated with home improvement, including Home Depot and Lowe’s, also experienced a decline of around 3% each. John Burns, CEO of John Burns Real Estate Consulting, emphasized that builder stocks are particularly sensitive to mortgage rates, which influence housing demand and construction costs.

Although Trump has not provided specific plans regarding housing policy, he has previously mentioned deregulation and the potential opening of federal land to increase housing supply. In a statement, Carl Harris, chairman of the National Association of Home Builders (NAHB), expressed optimism about Trump’s administration, indicating that the NAHB anticipates working with Trump to advance housing legislation aimed at easing affordability challenges and boosting supply.

Builders have been absorbing some of the mortgage rate increases by offering rate buy-downs to customers, though this approach has reduced profit margins. Despite the Federal Reserve’s recent rate cut, mortgage rates have continued to climb due to strong economic reports in September and October, which drove up bond yields.

For homebuyers, this rate increase translates to a substantial difference in monthly payments. A borrower purchasing a $400,000 home with a 20% down payment on a 30-year fixed mortgage would have had a monthly payment of $1,941 in early September; now, that payment is $2,157, reflecting an increase of $216 per month.

The current housing market has seen an unusual boost in existing home sales, with pending sales (signed contracts) rising by 7% in September compared to August. This sales surge is largely driven by increased inventory, as the number of homes for sale in October was up 29.2% compared to the previous year, reaching the highest levels of active inventory since December 2019.

According to Graham, the future trajectory of mortgage rates will depend on inflation, broader economic performance, and Treasury issuance, factors which will continue to play a critical role in the U.S. housing market.