Housing shortage in Ukraine: why a crisis will begin 1-2 years after the end of the war

Housing shortage in Ukraine: why a crisis will begin 1-2 years after the end of the war

According to ХВИЛЯ: Ukraine is expected to face a crisis in the real estate market due to a shortage of available housing after the security situation stabilizes. The head of the Ukrainian Association of Developers, Yevhen Favrov, noted that there is a growing demand for housing in the country, although the supply is not keeping pace. The average construction cycle from project initiation to building commissioning takes two to three years, complicating the situation.

Prospects for the real estate market

The first 1-2 years after the stabilization of the security situation will be the hardest for the real estate market. This is related to the so-called 'deferred demand' trap, where people who were unable to purchase housing during the conflict will start actively looking for options after it ends. As Favrov pointed out, construction is a long cycle, and it will not be possible to quickly meet the growing needs.

To reduce the risks of a housing shortage, the expert called for the necessity of:

• predictable state policy;
• expansion of financing programs;
• creating conditions for launching new housing projects today.

Otherwise, the market may face serious problems that will affect housing availability for the population.

This situation underscores the importance of timely responses from the state and the private sector to prevent a potential crisis in the real estate market. The highlighted need for accelerating housing construction and implementing financial programs may become a key factor in ensuring housing accessibility for citizens after the conflict ends. In the context of growing demand, appropriate measures can help avoid serious socio-economic consequences in the future.