In Russia, 34.95 million square meters of housing were completed in January-May 2026 – a 21.7% decrease compared to the same period last year, according to the Federal Statistics Service (Rosstat). The sharpest decline was recorded in private housing construction, with the population delivering 22.4 million square meters, which is 32.1% less than in the previous year, TASS reports.
Demand is being squeezed by high market mortgage rates and tighter terms for the state-subsidized family mortgage program. The “one family, one subsidized loan” rule has been in effect since February 1: spouses must now apply for a mortgage jointly and can no longer obtain separate loans at the 6% rate. This has reduced opportunities for repeat purchases and investment transactions, even though the program remains the primary driver of demand for newly built housing.
At the same time, the total volume of multi-family housing under construction has not yet declined: by the end of May, it reached 119.7 million square meters, up from 117.5 million a year earlier. Experts explain that the current drop in completions is largely attributable to the slump in private house construction and the high baseline from the previous year. However, weakening sales and a reduction in new project launches could lead to a more pronounced supply contraction in the coming years.