The Impact of the 2014 Crisis on the Mortgage Market in Russian Regions

Increasing the availability of housing is an important task of the state. Due to low incomes of most the population the acquisition of housing by only their own savings is not available. One solution to this problem is mortgage lending, which allows faster buy housing. In 2014, the economic conditions in Russia are changed. This work focuses on the crisis in Russia that began due to Ukrainian crisis, anti-Russia sanctions and the fall of the ruble. At this time, the behavior of consumers has changed because they want to save their savings. In this work we analyze the events that affected the mortgage market in 2014, also determine a set of factors that can influence the development of regional mortgage markets. Due to the heterogeneity of the regions, we use panel regional data (2010-2016) from Federal state statistics service and the Central bank of Russia in the model. In accordance with the features of the used data, the best is the model with fixed effects. In the model we estimate the changes in the influence of social and economic factors on the equilibrium state (the number of mortgage loans issued per 1000 people).