Approaches to assessing and increasing housing affordability in Russia*

Abstract

Improving the quality of life is one of the priority tasks of Russia’s social-economic development, which requires solving the housing problem, since housing is one of the basic human needs. Based on the generalization of various approaches to ensuring housing affordability, the article shows that, in addition to the study of social-political and economic aspects, a kind of sociology of housing develops. Based on the results of sociological surveys, the authors identify the preferences of different groups (parents with children and youth) in housing. Thus, 70 % of Russians are ready to use mortgage lending to solve the housing problem. There is a paradox: on the one hand, 66 % of multi-apartment houses cannot be sold; on the other hand, there is a low level of housing supply (lower than in Eastern Europe and some CIS countries) and a high level of dilapidated housing stock and communal infrastructure. Previously, housing conditions were improved mainly at the expense of the state, now the purchase or construction of housing is ensured mainly by the population’s savings and borrowed funds, primarily mortgage lending. However, despite the growth in the volume of mortgages and their improved conditions, the housing affordability coefficient for 2000–2022 indicates a deterioration in housing possibilities. This is explained, first, by the low level of incomes and their significant differentiation — only a small share of Russians can take advantage of mortgage lending; second, housing prices grow much faster than incomes and wages. In addition, the low quality of new housing and social infrastructure, a high share of dilapidated housing and of families in need of relocation, and a number of other factors must be taken into account when implementing housing policy and solving the housing problem. The empirical basis of the article is the data of the Federal State Statistics Service, Bank of Russia, National Bureau of Credit Histories and Accounts Chamber.