So your comment made me go “lol, imagine buying a house in Russia.” Meaning my preconceptions were that most in Russia didn’t have the means to own a home.
But then I’m like, I don’t actually know that, let’s check it out.
According to this site home ownership in Russia is over 90%. So what you outlined is a real problem for people there, and changes some of my mental picture of Russian life.
I suppose 30 years of mostly declining population has probably significantly reduced the pressure on the housing supply
I still have question how even stagnated population would even pressure housing supply at all.
I was wondering the same thing for Germany, our population is stagnating, but apparently we need 400,000 new apartments per year (according to our government). Maybe because there are more divorces and singles nowadays who want to live alone?
90% sounds really high? At least compared to the states where it seems a vast majority is renting??
No idea the data on this, just going off my anecdotal experience.
Everything was owned by the state during Soviet times. Then the people got the chance to privatise their homes for pennies. Now everyone is an owner. That happened to all countries which were a part of USSR, not just Russia. Renting is a very weird concept over there. You only rent if: you travel a lot for work, you’re a poor student in a different city and your uni didn’t provide accommodation, or you’re an alcoholic who lost their home.
Source: born and raised in USSR.
90% own houses, but evidently a much lower percentage also own a washing machine, judging from the souvenirs the conscripts have been bringing home
I was surprised as well. It would be worth confirming the dates from a second source, but there are some ready possible explanations for it as well. It could show a large number of multigenerational households. It could relate to the distribution of the population in high and low cost areas (rural vs urban likely). So it does seem high, but not impossible.
Cheers!
Another large factor is that it was communism up until relatively recently. Meaning wealth was largely evenly distributed outside the very top of the party. Not that people were well off, but far more equal than we are in the west. And while the oligarchs have an extremely outsized percentage of all Russian wealth buying real estate would make little sense in Russia, that would 1) put their position in Russia in danger by painting a target on them 2) a horrible hedge given Russia isn’t the most stable economy. In total I think 90% sounds extremely reasonable. Though the average house standard is of course far lower than say Germany.
If home ownership is 90% that doesn’t sound like a big problem for the country. If only 10% are renting or looking I can’t imagine that would have much of an impact on prices with demand being so low. Business investment is a problem for sure
People have children and need to get a bigger place. Or their children grow up and move out, so they downsize.
Higher interest rates keep people in places that don’t fit them because it’s more expensive to change.
I have no clue but that’s only true for a growing population. Last time I checked they have a diminishing population with not that much immigration. So if every time someone dies they leave the house to their child - no money required. Again all assumptions
It’s not that I didn’t think anyone had the means, but that there would be a lower percent than they have due to wealth inequality. And yes, we are a product of our environment, and much of the western media covers the bad behavior of oligarchs. I don’t routinely get exposed to contemporary slice of life vignettes of other countries.
Lastly, when you try and shame others for showing that they learn, challenge the internal biases that we all have, and change their own opinions, you only serve to show others the calcified state of your own perceptions.
