In major Russian urban centers, the supply of rental housing contracted to 53 percent of market availability over the year and slipped to 15 percent in the most recent month. A report cited by a reputable newspaper notes that this figure marks a 37 percent decline since the start of 2023. The source for these details is Alexei Popov, who heads Cyan.Analitiki, according to the publication.
The figures cover cities with populations exceeding 500 thousand as well as the Moscow and Leningrad regions. Popov also pointed out that rental housing inventories have been falling for seven consecutive months. He added that historically, the window from December through March sees an uptick in supply, followed by a decline as the year progresses.
Industry specialists observe that some landlords, who previously offered long-term leases in major cities, have shifted to short-term rental formats. Others have chosen to put apartments on the market for sale. A contributing factor is the return of Russians who had previously left the country, which has intensified demand for rental units and reduced the pool of available properties.
Analysts note that the fall in rental stock tends to be most pronounced in the autumn and early winter. This year is expected to follow the same pattern, making it harder to secure affordable, well-maintained apartments for rent. The narrowing supply is likely to push up competition among prospective tenants and could influence pricing dynamics across the market.
Viktor Sadigov, the general manager of Nika Estate, estimates that rental prices could rise by about 10 to 15 percent as demand remains strong and supply tightens further. This projection aligns with broader discussions about how rent levels respond to shifts in population movements, economic conditions, and housing policy signals.
In related developments, findings released by the Central Bank have sparked discussions about renting a home as a viable alternative to taking on a mortgage in today’s market. Observers note that rental housing markets respond to macro trends, including mortgage rates, wage growth, and the overall cost of living.
Earlier reports also mentioned that when commodity prices fluctuate, particularly in the energy sector, they can influence household budgets and consumer choices, including housing options. The ongoing dynamics in Russia’s housing sector illustrate how a combination of supply constraints, shifting demand, and macroeconomic factors interact to shape rental markets in large cities.