The city's population is steadily increasing, and residents are looking for more per capita living space, which is leading to an increase in the need for residential areas. The city does not have limitless land for construction at its disposal however, meaning that new buildings are now more compact and higher, without having an adverse affect on the quality of living.

The city's housing market is currently a source of tension, with many people looking for apartments and having trouble finding one in the City of Zürich. The city's housing market still however continues to work well on every level for the entire population, particularly thanks to the number of recent new buildings, which the city is supporting by giving land over for construction and credits to associations, as well as organising architectural competitions. It also subsidises a total of around 7,000 apartments for the community and supports institutions which manage accommodation for the young, the old and those in need. The city also works intensively with private residential property developers to promote other residential building sectors for a wide variety of target groups.

A central element for the building projects in the City of Zürich is the development and construction of new buildings which are forerunners of what is required for the 2000-Watt society. The City of Zürich is initiating an exchange of experiences between leading investors, property developers and planners and promoting the general implementation of leading building standards, since the greatest potential for a reduction in energy consumption is in existing buildings.