Switzerland faces a pressing issue: the escalating demand for affordable housing that surpasses supply. Housing crisis is particularly severe in urban centers like Zurich, Geneva, and Basel, where scarce units and soaring prices make it increasingly challenging for low- and middle-income households to find appropriate accommodations. Factors such as population growth, restrictive zoning regulations, and a predilection for luxury property investments contribute to this problem, which consequently affects social equality and the country’s overall economic well-being. Embracing smart city technology, an innovative approach to urban development, can alleviate Switzerland’s housing crisis by enabling more efficient urban planning and resource allocation and promoting sustainability practices.
The demand for affordable housing in Switzerland has significantly outpaced the supply, creating a notable imbalance in the housing market. Housing prices and rental rates have steadily increased, making it difficult for low- and middle-income households to find suitable accommodations (Jaberg, 2022). The problem under consideration is most pronounced in large urban centers, where the shortage of affordable units is especially acute. For example, in 2020, less than half a percent of space in Zurich was available for housing. (Jaberg, 2022). The extreme housing shortage is a major problem for low-income individuals who are in need of affordable housing.
Multiple factors contribute to the growing housing crisis in Switzerland. Driven by rapid urbanization, population growth is a major factor of the housing crisis, due to increased demand (Van Doorn et al., 2019). Strict urban zoning regulations and restrictions on land availability contribute to the development of the problem. Lastly, the high cost of construction and the preference for investment in luxury properties rather than affordable housing contribute to the shortage of accessible housing options.
The consequences of the housing crisis on low- and middle-income households in Switzerland are far-reaching. Limited access to affordable housing places considerable financial strain on these households, as they are forced to allocate a more significant proportion of their income toward housing expenses (Jaberg, 2022). This financial burden restricts their disposable income, diminishing their ability to save, invest in education, or access other essential services. Moreover, the housing crisis negatively affects their employment opportunities, as individuals may need to reside far from their workplaces due to housing affordability constraints. Consequently, addressing the housing crisis is crucial to maintain Switzerland’s high quality of life, social equality, and overall economic well-being.
The solution to the housing crisis in Switzerland could be smart city technology. This technology includes various components that positively affect the availability and affordability of housing (Singh, 2022). Smart city technology includes intelligent transportation systems that allow residents to reduce the need to live in close proximity to jobs, thereby reducing the demand for housing in densely populated areas. In addition, smart city technology offers tools for analyzing supply and demand, which will allow urbanists to more effectively plan the zoning of urban space.
In addition to the components mentioned above, smart city technology promotes energy-efficient buildings and digitalized public services, leading to more sustainable urban development. Adopting intelligent city technology can increase the efficiency of urban planning and resource allocation, ultimately alleviating the housing shortage (Singh, 2022). However, the implementation of smart city solutions has its challenges. Initial investments in infrastructure, digital technology, and personnel training are required to establish a solid foundation for these technologies. Launching a smart city planning system will cost the government more than $20,000 annually, excluding labor costs, while the initial set-up of the data analytics system will cost more than $100,000. Despite these upfront costs, the long-term benefits of adopting smart city technology, such as improved housing availability, reduced environmental impact, and enhanced quality of life, can significantly outweigh the initial expenses.
The hype cycle, a graphical representation of the maturity, adoption, and social application of emerging technologies, is a valuable tool for understanding the potential of smart city. After analyzing the most recent hype cycle model, it becomes clear that smart city technology is in the “Slope of Enlightenment” phase (Gartner Hype Cycle Research Methodology). This phase is characterized by successful implementations becoming more common and a better understanding of the technology’s benefits and limitations. As a result, smart city technology is approaching a stage of maturity where its practical applications can be realized on a larger scale, making it a more viable solution to address Switzerland’s housing crisis.
The 6 D disruption model makes it clear that smart city technology will be beneficial in addressing the housing crisis in Switzerland. The digitization stage involves the transfer of data into a digital model, which is easy to do by converting urban planning processes into a digital form for easy dissemination. The stage of deception can show the shortcomings of the model caused by a slow start, but it will help identify all the shortcomings of the technology and correct them in a timely manner. The third stage, which implies the destruction of an established tradition, is significantly applicable to smart city technology, since it will significantly speed up the process of urban organization and offer urbanists and residents new solutions. During the demonetization phase, it will become apparent that smart city technology is cost-effective for the operation of public transport. The dematerialization stage will demonstrate the impact of technology on other areas, such as improving the well-being of the population. Finally, the last stage of democratization will make smart city technology a part of the life of every citizen.
Adopting smart city technology has the potential to foster sustainability practices in Switzerland’s economy. By promoting energy-efficient buildings, optimizing resource allocation, and encouraging sustainable urban planning, smart city solutions can help reduce the environmental impact of urbanization (Singh, 2022). Moreover, these technologies can support social sustainability by improving access to affordable housing, education, and employment opportunities for low- and middle-income households. Thus, implementing smart city technology can contribute to a more environmentally and socially sustainable Swiss economy.
Multinational corporations (MNCs), such as ASEA Brown Boveri (ABB), can play a critical role in addressing the housing crisis by implementing smart city technology. ABB, a leader in power and automation technologies, possesses the expertise to develop innovative smart city solutions (ABB provides smart city solutions to support the needs of all cities, 2019). By investing in research and development, ABB can create technologies that enhance urban planning and resource allocation, contributing to resolving the housing crisis. ABB can develop smart grid solutions that optimize energy distribution and consumption in urban areas, reducing energy costs and promoting the construction of energy-efficient housing (ABB provides smart city solutions to support the needs of all cities, 2019). By collaborating with local governments, ABB can facilitate the implementation of smart city technology. Through these efforts, ABB can help address the housing crisis while supporting sustainability practices, contributing to a more inclusive and sustainable Swiss economy.
To conclude, adopting smart city technology can play a crucial role in addressing the housing crisis in Switzerland. By leveraging data and digital solutions, smart city technology can promote more efficient urban planning and resource allocation, ultimately improving access to affordable housing for low- and middle-income households. Furthermore, implementing smart city technology can foster sustainability practices, contributing to a more environmentally and socially sustainable Swiss economy. Multinational corporations like ABB can play a pivotal role in this process by developing and implementing innovative smart city solutions that address the housing crisis, leading to a more inclusive and environmentally friendly economy.
References
ABB provides smart city solutions to support the needs of all cities. (2019). ABB. Web.
Gartner Hype Cycle Research Methodology. (n.d.). Gartner. Web.
Jaberg, S. (2022). Home ownership remains a mirage for most Swiss. SWI swissinfo.ch. Web.
Singh, M. (2022). The future is smart cities. Community Management Today. Web.
Van Doorn, L., Arnold, A., & Rapoport, E. (2019). In the age of cities: The impact of urbanization on house prices and affordability. Hot Property, 3–13. Web.