REGIONAL INEQUALITY ON THE RESIDENTIAL PROPERTY MARKET IN RUSSIA: DYNAMICS OF KEY INDICATORS

Abstract

The improvement of housing conditions is a key task of the state socio-economic policy aimed at improving the level and quality of citizens’ life. In Russia the problem of low housing provision is compounded by significant inter-regional differences. The relevance of identifying the dynamics of key housing sector indicators from the inter-regional perspective is due to the need to develop and implement management decisions – at the level of the federation, federal entities and municipalities – aimed at regional equalization and increasing thehousing provision in general. The focus and dynamics rates of such key indicators of national and regional housing markets as the number of living quarters commissioned per 1000 people, the number of families registered as being in need of living quarters, the share of failing housing stock in the total area of housing stock, average prices on the primary and secondary housing markets, housing affordability ratio (classic and modified) in the primary and secondary markets (2010-2018) are presented and assessed. The ranking of the Russian regions by given indicators (as at 2018) has been conducted, a significant inter-regional differentiation is noted, which is primarily caused by regional differences in income level and housing costs, which forms the low affordability of residential property. The aggravation of the situation – a sharp rise in the housing cost – was noted after the program of concessional mortgage lending was introduced during the lockdown period (spring, 2020). The strategic solution to the problem of limited housing affordability in Russia should be providing conditions contributing, on the one hand, to the growth in housing construction, on the other hand, to an increase in real incomes of the population and improvement of the existing housing market institutions, ensuring higher housing affordability, namely: development of residential mortgage, land mortgage and mortgage-backed securities market.

Keywords

housing affordability, concessional mortgage lending, housing provision, regional equalization, residential property market

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About the author

Elena A. Basova – PhD in Economic; Senior Researcher, Vologda Research Center of the Russian Academy of Sciences, Vologda, Russia. E-mail: elbas@yandex.ru. SPIN РИНЦ 9193-5243. ORCID 0000-0003-2817-5454

For citation

Basova E.A.Regional Inequality on the ResidentialProperty Market in Russia: Dynamics of Key Indicators //BENEFICIUM. 2021. Vol. 4(41). Pp. 30-39. (InRuss.). DOI: 10.34680/BENEFICIUM.2021.4(41).30-39