What is a housing cooperative?
A housing cooperative (Genossenschaft) is an association of people who build, own and manage housing together. Unlike a profit-oriented property company, the focus is not on profit but on the principle of cost rent (Kostenmiete): the rent covers the actual costs of the property, nothing more. This is the main reason why cooperative flats are often cheaper than flats on the open market. In the city of Zurich, for example, the median net rent of a 3-room flat was CHF 1'022 at cooperatives and CHF 1'875 with other landlords (Statistik Stadt Zürich, rent survey 2024, existing rents).
As a tenant you usually become a member of the cooperative. You buy share certificates (Anteilscheine) and thereby gain a say, for example at the general assembly. So you are not only a tenant but a co-owner of the community.
A short history of cooperatives
The Swiss cooperative movement emerged in the late 19th and early 20th century as a response to housing shortages and speculation. In cities such as Zurich, Bern and Basel, workers joined together to create affordable housing. Today around a quarter of all rental flats in Zurich belong to non-profit developers, a share that is unique in Europe.
The advantages at a glance
- Lower rent: Thanks to cost rent you pay considerably less than on the open market.
- Protection from termination: Cooperatives practically never terminate tenants for economic reasons. You live there as long as you want.
- Community: Common rooms, gardens and neighbourhood events create a lively community.
- Participation: As a member you have a say in how your estate is designed and run.
- Sustainability: Many cooperatives build ecologically and focus on long-term preservation of value rather than returns.
Disadvantages and requirements
Cooperative flats are not ideal for every situation. The most important points you should know:
- Share certificates: You have to contribute capital when moving in (see below).
- Income and occupancy rules: Many cooperatives require the flat to match the household size (e.g. number of rooms = persons + 1).
- Waiting times: Popular cooperatives have long waiting lists, sometimes several years.
Share certificates explained
Share certificates are your financial contribution to the cooperative's equity. Depending on the cooperative and flat size, the amount ranges from a few thousand to over 20'000 francs. Important: share certificates are not lost money. When you move out you usually get them back in full, sometimes even with a little interest. So they work more like a higher deposit that you get back when you leave.
Income limits
Municipal and subsidised cooperatives in particular have income and asset limits so that the affordable housing benefits those who need it. The limits differ greatly depending on city and cooperative. Freely financed cooperatives, on the other hand, often have no income limits at all. Always check the specific conditions of the cooperative in question.
Waiting lists: how long do you wait?
It varies a lot. At very sought-after cooperatives in Zurich the wait can be several years. Other cooperatives allocate flats directly after receiving the application, as soon as something becomes free. This is exactly the key: if you react quickly, you have a decisive advantage. More on our waiting list overview.
How to apply, step by step
- Research cooperatives that suit your situation.
- Where necessary, register on waiting lists (often possible in advance).
- Prepare your application file (see our tips).
- Monitor available flats continuously, ideally automatically.
- React quickly as soon as something suitable is advertised.
- If interested, go to the viewing and hand in a complete file.
Tips for a successful application
- Have a complete file ready (debt enforcement extract, payslips, ID).
- Write a short, personal cover letter.
- Show that you identify with the cooperative idea.
- React within hours, not days.
Wohnify helps with exactly the last two points: we check cooperatives' pages about every 30 minutes and notify you when a suitable flat becomes available, so you can react early.