Nabiullina: Preferential mortgage programs have led to a doubling of housing prices in Russia

The reason is that the pace of housing construction did not keep up with the level of demand under preferential programs.

Preferential mortgage programs have led to a twofold increase in housing prices in Russia. This was stated by the head of the Central Bank of the Russian Federation Elvira Nabiullina, RIA Novosti reports .

According to her, this incentive failed to significantly increase supply volumes and went mainly into prices: housing affordability did not increase, despite the growth in household incomes. The reason is that the pace of housing construction did not keep up with the level of demand under preferential programs. Nabiullina recalled that since the beginning of 2020, housing construction volumes in the Russian Federation have increased by 10%, and prices have doubled. According to the head of the Central Bank of the Russian Federation, this example clearly shows what attempts to artificially support demand without regard to supply capabilities can lead to.