Why does the Canton of Solothurn have such a high vacancy rate?

The 3-point orientation

The high vacancy rate in the canton of Solothurn is primarily due to a combination of a large amount of residential construction, regional unequal demand and, in some cases, apartments that are no longer in line with the market. While Switzerland only had around 1.0% vacancy in 2025, Solothurn was around 2.05%. The reasons include older apartments, unfavorable microlocations, an oversupply in individual municipalities, less immigration than in Zurich or Basel, and an offer that does not always match the types of housing sought. On the other hand, good commuter locations, modern apartments and affordable family properties remain in particular demand.

The principle: Solothurn has more vacancies than almost all cantons

For years, the canton of Solothurn has stood out due to an above-average vacancy rate. While many Swiss cantons are struggling with housing shortages, Solothurn is well above the national average. However, this does not mean that the entire canton is a weak residential market. Rather, it means that supply and demand do not match everywhere regionally and qualitatively.

Vacancy does not only arise when there are too many apartments. It also occurs when apartments are offered in the wrong location, in the wrong size, in the wrong condition or at the wrong price. That is exactly what is important in Solothurn. The canton has good locations with solid demand, but also municipalities where apartments wait longer for tenant or buyers.

For property buyers and investors, the vacancy rate is therefore a warning sign, but not an exclusion criterion. It shows that you have to look more closely than in very scarce markets such as Zurich, Zug or Geneva.

A lot of new construction has long increased the vacancy rate

One important reason for the high vacancy rate is residential construction in recent years. In many regions of Switzerland, numerous apartment buildings were built during the low interest rate phase. Solothurn was attractive because land prices and construction costs were more moderate compared to centers and investors were looking for investment properties.

When many apartments come on the market at the same time, local supply can grow faster than demand. This applies in particular to municipalities that, although easily accessible, do not have the same demand pressure as Zurich, Basel or Bern. New apartments then compete with existing apartments and older properties.

The effect is often delayed. A new construction project is planned when the market situation looks good. By the time it is completed, interest rates, demand, rents and competition may already look different. This results in temporary or permanent vacancies.

Solothurn is located between centers, but is not centrally located everywhere

The canton of Solothurn has a special geographical location. It is located between Basel, Bern, Zurich, Aarau, Biel and Central Switzerland. That sounds very attractive, but it is not the same for every community. Some towns are well connected, others are off the main commuter routes.

Olten benefits greatly from its role as a rail and commuter hub. Dornach and other communities in Dorneck benefit from the proximity to Basel. The city of Solothurn offers quality of life, Aare, old town and infrastructure. Demand is weaker in other municipalities, particularly when public transport, jobs, shopping or schools are less easily accessible.

It is precisely these differences that explain why vacancy rates can be high in the cantons, while individual sub-markets are still stable or in demand. Solothurn is not a uniform housing market, but a canton with very different location qualities.

Not every vacant apartment meets demand

A key issue is the mismatch between supply and demand. Many people today are looking for modern, well-designed, energy-efficient apartments with balconies, lifts, parking, good public transport connections and moderate service charges. Older apartments without a lift, with poor floor plans, high heating costs or a weak location are harder to rent out.

The size of the apartment also plays a role. Small apartments may be in demand in urban locations, but less so in more rural communities. Large family apartments are sought if they are affordable and well located. Expensive new apartments in a mediocre location, on the other hand, can be vacant longer.

The vacancy rate therefore not only says something about quantity, but also about quality. Some of the vacancy is created because the existing offer does not exactly meet today's needs.

Older buildings are coming under more pressure

There are many older residential properties in the canton of Solothurn. These can be attractively priced, but are under greater pressure if they have not been modernized. Old kitchens, old bathrooms, poor insulation, high service charges, oil or gas heating and lack of balconies make an apartment less attractive.

tenant are comparing more strongly today. If modern new build apartments are available in the same community, older apartments must either be cheaper or offer clear benefits. Otherwise, they will remain empty longer. It becomes particularly difficult when the situation is mediocre but the rent is not significantly lower.

For owners, this means that vacancy is often a sign of restructuring. It is not enough just to lower the rent slightly. Sometimes there is a need for energy improvements, new surfaces, better floor plans or a clearer positioning.

Peripheral communities are more affected

The vacancy rate is not the same everywhere in Solothurn. In particular, municipalities with longer routes, weaker public transport, smaller labor market or little local dynamism can have higher vacancy rates. There, the potential group of tenant and buyers is smaller.

Vacancy is absorbed more quickly in good commuter locations. An apartment near Olten train station, in the city of Solothurn or in Dorneck near Basel appeals to more target groups than an object in a remote community. This increases rentability and resale potential.

This is crucial for investors. A low purchase price in a municipality with a high vacancy rate can be attractive, but the rental risks are higher. Location quality remains more important than gross returns.

Olten shows the other side of the canton

Olten is an example of the fact that Solothurn should not be read as a weak residential market across the board. The city is an important rail hub and offers direct connections to Zurich, Basel, Bern and Lucerne. This makes Olten interesting for commuters.

Nevertheless, Olten is also dependent on the district. Apartments near the train station, the Aare or good infrastructure should be assessed differently than properties in a noisy, unfavourable location or in need of renovation. Vacancy rates can vary significantly within a city.

For buyers and investors, this means that the micro-location is particularly important in Solothurn. A good address can be solid despite a high vacancy rate in the cantons. A weak address remains riskier even at a low price.

Dorneck and Basel-Nahe work differently

There are other forces at work in the northern part of the canton. Municipalities such as Dornach, Gempen, Hochwald, Bättwil, Rodersdorf and Breitenbach are more heavily influenced by Basel. Good locations benefit from demand from northwestern Switzerland.

This can reduce vacancy risks if the price, property and commuting route are right. At the same time, there are also differences here. Municipalities with good tram, rail or road connections are more popular than hard-to-reach places.

The canton of Solothurn is therefore a mosaic. The high vacancy rate is not explained by a single cause, but by many local sub-markets with different dynamics.

Grenchen and industrial sites

Grenchen and other industrial locations have their own market logic. They offer lower real estate prices, local jobs and proximity to Solothurn and Biel. At the same time, image, structural change, older buildings and less dynamic demand can promote vacancy rates.

That doesn't mean that Grenchen is unattractive. The region can be interesting for price-conscious buyers or tenant. But owners must calculate more realistically. Rental prices, condition and location must match the market.

Vacancies can arise in such sub-markets in particular when new buildings or renovated apartments compete with older stocks. If you don't modernize, you lose connection more quickly.

Vacancy is not automatically bad for tenant

For tenant, a higher vacancy rate can have advantages. More choice means better negotiating position, less time pressure and sometimes more moderate rents. In markets with very low vacancy rates, tenant must decide quickly and have little choice.

Solothurn can therefore be attractive for households looking for affordable housing. Compared to Zurich, Zug, Basel or Geneva, the canton is significantly more relaxed in many places. This can attract families, commuters, and price-conscious households.

However, the same applies here: The best apartments in good locations are not necessarily in oversupply. High vacancy rates often affect certain segments, not automatically all attractive properties.

Vacancy is a return risk for landlord

For landlord and investors, the high vacancy rate is an important risk. Vacancy means a lack of rental income, higher marketing costs and pressure on rent interest. This can weigh on the calculation, particularly in the case of externally financed investment properties.

In practice, a property with a theoretically high gross return may be less attractive if apartments have been vacant for a longer period of time or rent has to be reduced. That is why you should not only look at purchase price and target rent in Solothurn, but also demand, fluctuation, competitive supply and vacancy risk.

Good properties remain rentable. But poor locations, old equipment or excessive rental prices are punished more quickly in a market with more choice.

Effects on real estate prices

A high vacancy rate can dampen real estate prices, particularly for investment properties and apartments in weaker locations. When tenant have choices, rents rise less sharply. This reduces income value and can limit purchase prices.

In the case of owner-occupied residential property, the effect is less direct. Single-family homes in a good location may remain scarce despite the high vacancy rate in the cantons. Even modern condominiums in sought-after centers can be stable.

For buyers, this is an opportunity. In sub-markets with higher vacancy rates, prices can be negotiated more precisely. However, it is important not only to buy cheaply, but also to ensure good rentability or resalability in the long term.

Why the ratio remains high despite the decline

Vacancies across Switzerland have been falling for several years. Supply has also become scarcer in many regions. Nevertheless, Solothurn remains high in comparison because the starting point was significantly elevated. Even if the rate falls, it is still above the national average.

This shows that Solothurn is not going against the entire Swiss trend, but from a higher level. The severe housing shortage in Zurich, Geneva, Zug or Basel cannot be transferred one-to-one to Solothurn.

In the long term, the vacancy rate can be further reduced if fewer new buildings are built, more households move in or older stocks are renovated. But structural differences between communities remain.

What buyers should check before buying

Buyers should check several points about Solothurn real estate: vacancy rate in the municipality, microlocation, public transport, jobs, schools, purchasing, condition, year of construction, energy, competitive supply and renovation needs. Local demand is particularly decisive for investment properties.

For apartments, renewal funds, service charges, floor plan, balcony, lift, parking space and rentability should be examined. For houses, the roof, heating, windows, façades, pipes and moisture count. A cheap property can be a good buy if the location and condition are right.

Comparing with current advertisements is also important. If there are many similar apartments vacant in the same municipality, you should calculate more carefully.

What owners and sellers should consider

Owners in a market with higher vacancy rates must clearly position their property. Good photos, realistic rent, up-to-date condition, clean documents and quick response to inquiries are becoming more important. Vacancies are often caused not only by the market, but also by incorrect pricing or marketing strategies.

Sellers should realistically assess the number of buyers. A property in a good location may continue to be in high demand. A house in need of renovation or an older apartment in a weaker location needs a different pricing strategy.

Transparency on renovations, energy, service charges and rental history creates trust. An honest vacancy and rent analysis is crucial, especially when it comes to investment properties.

Conclusion: Solothurn has a lot of supply, but not the same demand everywhere

The answer to the question Why does the Canton of Solothurn have such a high vacancy rate? is: Because the canton has built up a lot of living space in recent years, while demand is unevenly distributed regionally and qualitatively. Many apartments are empty not because no one wants to live in Solothurn, but because location, condition, price or apartment size do not always match demand.

Older collections, peripheral communities and objects with weak microlocations are particularly affected. Good commuter locations, modern apartments, affordable family properties and locations close to Olten, Solothurn, Basel or important public transport routes remain in demand.

For tenant, the high vacancy rate can mean more choice. For buyers and investors, it is a sign of caution. Anyone who thoroughly checks location, quality and demand can find opportunities in the canton of Solothurn. If you only look at low prices, you risk vacancy, weaker returns and longer resale times.

Glossary on the vacancy rate in the Canton of Solothurn

• Vacancy rate: Share of vacant apartments offered on the market as a proportion of the total housing stock.
• Empty apartment: Apartment that is vacant on the closing date and is offered for rent or sale.
• microlocation: Specific location quality, such as train station, school, shopping, sun, noise, views and commuting.
• Mismatch: Difference between existing housing supply and actual demand.
• market liquidity: Likelihood of being able to rent out a property quickly or sell it at a fair market price.