Problems of Housing Affordability Improvement and Development of Residential Construction in Vladivostok

Abstract

The present article is dedicated to the problem of residential housing, investigation of factors reducing affordability of housing and impeding further development of residential housing construction in Vladivostok – capital city in the Far Eastern Federal District of the Russian Federation.The target indicators which are used in federal programs/projects and reflect the ongoing trends in housing affordability for the local population are duly considered herein. The necessity to update and further clarify calculations of housing affordability index is duly substantiated. The special model for evaluation of housing affordability under governmental programs implemented at local municipal level with due consideration for ongoing mortgage credit lending, demand patterns, population income levels and demographic factors is herewith developed. Assessment of possibilities for purchasing apartments of specific space among different groups of population and family types has been duly made. The main factors impeding housing affordability in Vladivostok have been identified and the analysis of their influence on housing affordability index (based on the “sensitivity analysis” method) has been duly carried out.Analysis of housing availability to the local population and actual rates of commissioning the brand new residential housing in Vladivostok within 2010-2018 has been carried out. The revealed indicators are significantly lower in comparison with the national average in Russia and do not match the levels set forth in the federal and municipal state programs. The necessity to increase new housing construction volumes in almost three times is clearly substantiated. The main problems impeding further development of construction industry and best solutions possible have been identified and described.