Final report : the transition to a market-based housing sector in Romania

The huge transfer of wealth that accompanied housing privatization has sparked the development of a private housing market. This report reviews Romania"s housing sector, particularly conditions in Bucharest, Brasov, and Oradea, concluding that efforts to support the private housing market and to put into place sensible public housing assistance programs are justified at this time. These efforts will produce immediate, real benefits in three areas: (1) the housing sector many offer an opportunity for private citizens to act independently to improve their own well-being without having to rely on the state; (2) housing assistance is a necessary component of the social safety net which will ease the transition to a market-based economy; and (3) by facilitating labor mobility, the housing sector will improve the efficiency of the labor market. Within this context, Romania is advised to channel most energies in the housing sector towards improving existing housing stock, facilitating private residential real estate transactions, expanding access to the housing market, and defining the government"s role. (Author abstract, modified)