Housing privatization in the Russian Federation

This paper examines the antecedents and provisions of that legislation, as well as its early implementation in Moscow, Ekaterinburg, and Novosibirsk during the period January to May 1992. The general conclusion is pessimistic. The program is unlikely to fulfill its major objective -- to "shock" the housing market into a market mode by transferring 25% or more of the housing units to the population. In fact, the program may make the distribution of housing assets, including implicit property rights, more inequitable than in the era prior to privatization. While this conclusion is speculative, the Russian government is advised to pursue major changes in its program, e.g., by increasing rents in order to raise unit value and by announcing a time limit (perhaps 12-15 months) for making the privatization decision in order to focus tenants" attention on the decision. (Author abstract, modified)