Alexander Danilov, who leads the Banking Regulation and Analytics Department at the Bank of Russia, warned that housing affordability in Russia has not improved despite preferential mortgage programs. The remarks came during the All-Russia conference on Mortgage lending in Russia, as reported by TASS.
Danilov posed a stark question about household finances. He asked how many years a person would need to save from a salary, excluding everyday consumption, to purchase an apartment. He pointed out that in 2019 it would take about six years in the primary market for a first long-term home loan, and now it requires roughly eight years. He asked what sort of accessibility this represents for average buyers.
The head of the department noted that as housing prices in the primary market surge, regulators have proposed plans to lower loan rates. He emphasized that such measures are likely short-lived and may not offer lasting relief for buyers.
Speaking to the audience, Danilov questioned what comes next if artificial measures keep mortgage demand afloat. He suggested that the Bank of Russia supports longer-term, stable strategies, including the possibility of using higher reserve buffers to help buyers secure loans at prices closer to the market value rather than above it.
Some real estate agents reported that residents of Moscow are increasingly saving by dropping mortgage insurance, indicating a shift in how households approach home purchases during a period of rising prices.