An Experimental State Program for IDP Housing Support
Since its launch on January 29, 2025, a Ukrainian government pilot project to subsidize rental housing for Internally Displaced Persons (IDPs) has proven largely ineffective. The program was established by Cabinet of Ministers Decree No. 1225 on October 25, 2024. The full-scale invasion of 2022 triggered a humanitarian catastrophe, leaving 4.62 million Ukrainians officially registered as IDPs by early 2026.
Assessing the Program's Impact
Despite offering individual subsidies ranging from 5,000 to 15,000 hryvnias, depending on region and family size, only 26 rental agreements were signed nationwide by July 2025. The primary obstacle is Ukraine's shadow rental market, where over 90% of deals are informal; in frontline regions, this figure reaches 90-95%. Landlords face an effective tax rate of 19.5%, which is estimated to consume 20-23% of their rental income.
Average monthly rent for IDPs in major Ukrainian cities is 12,000-15,000 hryvnias. For instance, a two-room apartment in Lviv averages 18,000-20,000 hryvnias, with rents rising 6% in 2025, while in the Kharkiv region, rent ranges from 10,000 to 12,000 hryvnias. The state subsidy covers just 50-70% of rental costs, amounting to only 6,000-10,500 hryvnias.
Approximately 40% of displaced families with children report having to cut back on food and medical care, highlighting the severe challenges they face. Experts propose four key systemic reforms to address the housing crisis:
- Enacting specific legislation to support the program;
- Amending the Tax Code to provide incentives;
- Creating a simple, transparent reporting system;
- Implementing ongoing public education and monitoring.
Other nations that have managed large influxes of displaced people, such as Poland, Canada, the United States, Germany, and Georgia, offer potential models for Ukraine. For example, Poland accepted over one million Ukrainians after 2022, and Canada resettled more than 40,000 Syrian refugees in 2015-2016. In Germany, basic citizen's allowance (Bürgergeld) is €506–563, with average refugee housing costs ranging from €400 to €800 monthly.
The rental housing crisis for IDPs in Ukraine demands urgent resolution, as the current subsidy system is failing to meet the needs of the displaced population. This situation underscores the necessity for a comprehensive approach to the socio-economic problems caused by the war. While state programs exist, their implementation is insufficient, and the lack of formal contracts severely limits IDPs' access to housing. Effectively adopting the proposed reforms could help reduce social tension and improve living conditions for countless Ukrainian families.