The stated path to making housing more affordable for Russian citizens hinges on a conventional correction in price levels. This perspective was shared by Alexander Danilov, who holds the position of Director of the Banking Regulation Department and serves as an Analyst at the Central Bank of Russia. He spoke during the Mortgage Lending in Russia forum, conveyed through Interfax, outlining how a normalization of prices could lower barriers to home ownership and shift the market toward more attainable terms for many buyers.
Danilov argued that merely relying on special privileges or near-zero interest programs cannot sustain long-term affordability. He pointed out that early interventions born out of policy urgency tend to become exhausted over time, creating a situation where artificial support masks the underlying reality rather than addressing it. In his view, a genuine and lasting fix would involve aligning price levels with the real market environment, a change that would benefit ordinary buyers who prefer straightforward purchases at fair, market-driven rates. The emphasis was on moving away from schemes designed to subsidize purchases and toward a stable framework in which buyers can rely on transparent pricing rather than navigating a patchwork of temporary incentives. This approach, he suggested, would translate into real accessibility for those who simply want to acquire a home without taking part in a complex program that may not reflect present conditions on the ground.
When considering the cost to prepare for an apartment purchase in the new-build sector, Danilov highlighted a practical benchmark: savings must cover a meaningful share of income over a substantial period. He explained that the average annual salary, after excluding discretionary daily expenses, would require about eight years to accumulate enough funds for a down payment and related costs under current market conditions. By way of comparison, at the close of 2019 that same target would have been achievable in roughly six years. The Central Bank official also noted that the dynamic of the primary market includes emerging risks that could precipitate a mortgage crisis if not managed carefully. As part of a broader effort to mitigate such risk, the Central Bank intends to implement an elevated reserve requirement for loans extended by developers on terms that deviate significantly from prevailing market rates. This measure aims to dampen the risk associated with loans offered at rates well below the market, ensuring a more resilient and stable lending environment for both lenders and borrowers while preserving the integrity of long-term housing finance for households across the country.