Abstract:
The paper is devoted to a problem of a regulation institutions design for the Russian sector of residential construction in terms of effects on a government policy to provide population by available and comfort housing. Focus is given to marginal costs of one square meter residential construction. This marginal price is fixed by Ministry for Regional Development to activate region authorities for removing off dilapidated and damaged residential construction. The next major criteria should be taken to assess effects from regulative/fixed marginal prices: (a) regional government activities at housing market (regional authorities as buyers); (b) regional government activities at housing market (regional authorities as residential constructers); (c) enforcement to reduce housing costs. The paper explores statistical data of one of the Russian region — Republic Sakha (Yakutia). Analysis of regional factors made housing more expansive in comparison with other regions is given. Maid conclusion says that fixed marginal price does not report a correct information concerning full residential construction costs, does not take into account regional factors effected to construction costs. There are institutional and as a consequence financial barriers to activate regional authorities to construct or purchase housing for accelerating a population removal from dilapidated and damaged residential construction.
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