Comparative Analysis of Trends in Housing Development in Russian Regions

Abstract

AbstractConstruction is a key sector of the national economy, one that is inextricably linked to all other sectors. Apparently, it would be difficult to incentivize better education, extend life expectancy, and increase people’s income unless housing shortage and poor conditions are addressed. This study sought to compare the status and issues of growth and improvement in housing development in medium term across Russian regions. Statistical methods of economics were used to verify the official statistics available for 1990–2019. Overview of residential housing commissioned over the period identified four stages of the housing industry’s development in the country. Thus, it was found out that since 2018, as abolition of the Federal Law No. 93-FZ was impending, and amendments were on the way regarding equity construction with use of escrow accounts, people started to commission more and more detached houses. 56% of all detached houses were commissioned in rural areas. Overall, cities account for 70% of new residential construction, rural areas for 30%. Housing construction varies from region to region depending on how developed the local investment and construction infrastructure is as well as on transport accessibility, income, and purchasing power of the locals. All these factors as well as the persistent sanctions, Russia’s actual isolationism in global politics, and the global Covid-19 pandemic have been defined and systematized herein as factors that affect the growth and trends in housing development in Russian regions. KeywordsHousing developmentGrowth and trendsRegions of Russia