T&H index: transport and housing costs
The Comparis T&H price index measures price trends in transport and housing. It shows that rents for apartments in Switzerland have risen by more than 9% in five years.
19.12.2024
iStock/Rafael_Wiedenmeier
1. How have transport and housing prices changed?
In November 2024, the T&H price index recorded an increase in transport and housing costs of 1.7% within one year.
Prices for transport and housing (abbreviated to T&H) rose above average. As a comparison: the National Consumer Price Index (NCPI) rose by just 0.7%.
Rental costs skyrocket
Particularly striking are the rising costs of renting apartments:
Apartment rental prices have increased by 0.5% since August 2024.
Compared to the previous year, apartment rental prices are even 3.4% higher.
Seen over several years, the change is even more impressive: in five years, apartment rents have risen over 9%.
Sharpest price increases since August
Flooring and carpets are 5.5% more expensive than in August 2024.
Bicycles and electric bikes now cost 5.3% more than three months ago.
In the case of material for home repairs, you now pay 5.2% more.
Greatest price declines since August
The prices of fuel have fallen by 5.8% in three months.
Moreover, “other consumer goods for housekeeping” also became cheaper – by 2.5%.
Heating energy (gas, heating oil, firewood and district heating) has declined by 1.9%.
You can find more figures and background information on the study’s findings in the Comparis T&H index for December 2024 (available in German only).
How much more do families have to pay?
A 1.7% increase in the T&H index within a year means: if a family spent 2,500 francs on apartment rent, 1,000 francs on a car and 200 francs on public transport tickets per month last year, their costs have increased by about 63 francs compared to the previous year. Looking at the year as a whole, this results in additional costs of 755 francs for transport and housing alone.
The T&H index measures inflation especially in the areas of transport and housing – including the costs of a car, public transport usage, rent and electricity.
Why does the T&H index matter?
For an average family in Switzerland, transport and housing costs make up around 40% of their daily budget.
The problem is that the costs for an apartment, public transport or car are sluggish consumption expenses.
These costs tend to be fixed and cannot be easily influenced by your consumption habits. Any price increases in rent or transport can therefore hit your budget particularly hard.
Previous analyses have taken too little account of these important expenses. The T&H index provides transparency and sheds light on these figures in detail.
How is the T&H index created?
It’s calculated in collaboration with the KOF Swiss Economic Institute at ETH Zurich. The index complements the Comparis consumer price index and the Comparis leisure index.
2. T&H costs: the current situation
A look at the price development in transport and housing shows that prices increased by 1.7% compared to the previous year. In recent months, the price level has stabilized.
3. Reference interest rate is expected to fall in 2025 – but rents will still rise
In the last five years, apartment rents in Switzerland have increased by 9.3%.
The increase in the mortgage reference rate contributed significantly to this. In 2023, the reference interest rate had been raised from 1.25 to 1.75% in two steps due to increased mortgage interest rates.
Since the beginning of 2024, the situation for mortgage loans has eased considerably. Inflation has fallen sharply, and the Swiss National Bank (SNB) has lowered the key interest rate several times. As a result, mortgage interest rates are declining. This suggests an imminent decline in the reference interest rate for mortgages.
For tenants this means: if the reference rate were to be reduced by 0.25 percentage points, many tenants could demand a rent reduction of 2.91%.
A reduction in the reference interest rate could temporarily relieve existing tenants. New tenants, on the other hand, must expect further rising rents due to the scarce supply of housing. Rents remain a key driver of inflation.
4. Who is most affected by inflation?
Not all Swiss households are equally affected by inflation. Consumption behaviour differs, among other things, depending on age, income and region.
T&H index by income
The lowest income class feels the most inflation with an increase of 2.3% compared to the previous year. For them, inflation has remained unchanged since August 2024.
The highest income bracket is the least affected. Prices rose by 1.5% in this case, with consumption becoming 0.3% cheaper for them in the last three months.
T&H index by age and living situation
Single-person households aged 65 and over experienced the highest inflation of 2.3% compared to the previous year. Prices for them rose by 0.1% compared to August 2024.
Couples aged 65 and over without children felt the lowest inflation, at 1.4%. For them, this fell by 0.2% in a 3-month comparison.
T&H index by region
At 1.8%, French-speaking Switzerland recorded the highest inflation compared to the previous year, but its price level has fallen by 0.1% since August 2024.
On the other hand, German-speaking Switzerland and Romansh-speaking Switzerland had the lowest inflation rate at 1.7%. Prices have become 0.1% cheaper for these regions since August 2024.
This article was first published on 27.03.2024
