Socio-economic Aspects of Intra-regional Distribution of Government Support of Housing Construction Industry

Abstract

The article discusses interrelationship between government support measures to multi-family housing construction industry (MFC) implemented by the government of Russian Federation during the crisis and potential socioeconomic effects of such support as well as the prospects of reaching the goals of the National project "Housing and urban environment". Our hypothesis regarding the levels of support measures for housing sector for different regions is that it needs to be synchronized with the size of the clusters (defined as Russian regions or subjects of Russian Federation) and their respective forecast of economic development. Based on our analysis, we conclude that this requirement is not fulfilled, which results in skewed support for housing construction companies (and their projects) in only a handful of Russian regions thereby posing risks of reaching goals of National project "Housing and urban environment". We also expect that the government will continue expanding the measures of housing construction support with a potential of an increased housing sector centralization.

Тенденции Развития Жилищного Рынка И Жилищного Строительства В Регионах России В 2022 Году

“…• market risks (reduction in demand for rental and purchase of housing as a result of the departure of some foreign businesses from Russia). The presence of the above risks and the influence of the uncertainty factor actually reduce the forecasting of industry prospects to assessing the opportunities and scale of support measures from the state [5][6][7][8].…”

“…Another 12 regions gained a positive momentum of housing commissioning, and only three of them, including Moscow, showed a reduction. 5,6,7,8 Against the previous year, there were noticeable changes within the traditional group of leading regions, due to reduced housing construction in Moscow and its real stagnation in St. Petersburg. The Moscow region has asserted its leadership in terms of the absolute volume of commissioning, and Moscow, due to a 13 % drop, closed the top three, having let the Krasnodar region go ahead.…”

“…End of the Table 4 Table 5. Housing commissioning in the Russian regions in 1999-2022 5,6,7,8 For the second year in a row, the percentage of individual housing built by the population at their own expenses or with the borrowed funds exceeded half of the total commissioning (55.7 %). Accordingly, the share of multi-apartment housing, which has been steadily declining since 2016, amounted to 44.3 % (Table 7).…”