Abstract:

This research aims to investigate mortgage lending and its affordability for young people in Russia, one of the most vulnerable social groups. This research employed historical and logical methods to define the category 'young people' and its age structure in Russian regions. We also estimated housing affordability by using the ratio of the average income to housing prices in the primary (newly built property) and secondary (resale property) markets. These data were compared to the level of housing provision in developed countries such as the USA, France, Germany and Poland. We also compared mortgage schemes offered by the top lenders on the mortgage market and identified the optimal options. To ensure the validity of our results, we used official reports of the Federal State Statistics Service and the Bank of Russia. We built a matrix of housing affordability in regions and calculated young people's need in housing. Thus, we have identified the key problem which should be addressed in order to facilitate the process of mortgage lending for residents and non-residents of Russia. Further research can expand its focus to mortgage lending to pensioners.