This article considers the city as a complex social system, a highly developed urbanized area, a place for the development of the economy, politics and the performance of economic functions. The authors suggest a system of elements that contribute to the sustainable development of the city and which includes monitoring the degree of political and public participation and commitments, governance models and mechanisms, processes and their improvement, policies, plans, strategic programs, governance mechanisms, a maintenance mechanism for the financial independence of cities and institutions. Considering that, the spatial structure of the city occupies a significant place in residential development, a comparative analysis of the state of the construction of cities in Russia and Bulgaria is given. A conclusion was drawn about various approaches to the development of industrial housing construction in Russia and European countries. The experience of Russian factories in the modernization of house building was considered.