Regional housing market and ways of its development (case study of Karelian Republic)

The analysis of the housing market condition in the Republic of Karelia is carried out. Its dynamics and structure are studied. Based on the results of the research the main problems of the republican housing market development are revealed: lack of the operating mechanisms managing the system of municipalities’ development; poorly developed industrial base, engineering, transportation and social infrastructures; high credit banks’ interests on mortgage loans. Development of the republican housing market is possible in two directions: by the stimulation of the solvent demand, including implementation of various state housing programmes, and by the stimulation of the offer. Proper provision of housing in the Republic is possible only with the help of the state, and, not only as a regulator of the real estate market but as a direct investor, including implementation of the Federal target programs and their regional analogues, priority investment projects, and others.