FINANCIAL LEVERAGES OF THE REGULATION OF RESIDENTIAL CONSTRUCTION

Abstract

The increasing level of population coverage with housing has traditionally been among the most relevant and challenging issues for the national economy of Ukraine. The military conflict, now in its second year, is changing the priorities of the public housing policy and requiring the search for new efficient methods of restoring the lost housing stock and regulating housing construction. The article addresses the volume of capital investment in residential construction in Ukraine and explains the financial framework for residential construction regulation. World best practices in the use of financial instruments in the regulation of the industry are systematized. The authors' view of the system of financial leverage of residential construction regulation is offered. The analysis of the housing affordability indicators shows that the average household income is insufficient to purchase housing and repay a mortgage. Meanwhile, the research indicates that a mortgage is one of the most common financial instruments for the purchase of housing for Ukrainians. The analysis of the level and dynamics of mortgage interest rates shows that they are 4.6 times higher in the euro than in the EU countries. The study of modern housing practices in Ukraine emphasizes the need to introduce new principles of sustainable financial regulation in residential construction. The article substantiates a set of these principles and recommends their implementation. The assessment of modern realities and consequences of hostilities in Ukraine reveals significant losses of housing stock (about 40%) and the need to change the priorities and tasks of public housing policy. An examination of the country's recovery and post-war housing programs allows the identification of the principles of transparency, openness, inclusivity, energy efficiency, resource efficiency, and sustainability as key strategic priorities in financial regulation.