Outside of Zurich rentals are not even that bad. You can easily get a nice apartment for 1500.- or even less. If one is struggling financially, rents are lower e.g. in Aarau district, starting from around 1000 and you can commute from there. Spending 1000 when the median salary is around 7000 is really not that bad. Low inflation in Switzerland meant other European locations are now at the swiss level or sometimes even above.

Yeah Switzerland has rather few poor people and very strong middle class. And poor ain't some US version of homeless/trailer park living, just lower income, less fancy clothes, shopping in cheaper supermarkets, less/no vacations abroad.