Housing Finance in Ukraine : A Long Way to Go

This is a review of housing finance in Ukraine since 1990s. Like in some other transition economies housing finance plays a two-fold role: in addition to ‘western’ sense to facilitate or hinder labour mobility by helping people to get a dwelling; either buying or renting it; it is also understood as a social security support for vulnerable groups to pay for rent and the cost of communal services in their housing. Recent changes in the overall economic situation in Ukraine and a depreciation of the national currency have deeply affected housing finance. Although mortgages are not widespread in Ukraine, 4% of GDP, more than 2/3 of them are dollar and euro mortgages and there is an urgent need to rethink the funding model. Ukraine has a number of government housing programs that should be developed in future. We illustrate the regional disparities in housing affordability measured as a ratio of the average wage to the price of 40 sq. m of accommodation (studio) as well as in terms of cost of life