UDC 711.4+364.122.5; JEL R11, R12, O47
Lysyak, N. M., & Karyy, O. I. (2026). Instytutsiyno-prostorovi aspekty dostupnosti zhytla mist-oblasnykh tsentriv Ukrayiny [Institutional and spatial dimensions of housing affordability in regional centers of Ukraine]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 178 (2) (pp. 37-47). DOI: https://doi.org/10.36818/2071-4653-2026-2-4 [in Ukrainian].
Sources: 22

Authors



Lysyak Natalya Mykhaylivna

Doctor of Economics, Associate Professor

Researcher of the Department of regional economic policy of the Dolishniy Institute of Regional Research of NAS of Ukraine; Professor of the Department of management of organizations of the Lviv Polytechnic National University

Contacts: natali.bila@gmail.com, nataliya.m.lysyak@lpnu.ua

Webpages:

Karyy Oleh Ihorovych

Doctor of Economics, Professor

Vice-Rector, Head of the Department of management of organizations of the Institute of Economics and Management of the Lviv Polytechnic National University

Contacts: ml415@ukr.net

Webpages:

Resume

The article examines the institutional and spatial determinants of housing affordability in regional capital cities of Ukraine. It argues that housing affordability cannot be adequately explained by traditional market factors alone and requires consideration of the spatial and institutional nature of land markets. The study is grounded in the theory of land rent and introduces the concept of “accessibility rent” as a mechanism through which spatial advantages and regulatory constraints are capitalized into housing prices. Methodologically, the research employs the Median Multiple indicator, which measures the ratio of median housing prices to median household income, allowing for a more accurate assessment of affordability. The empirical analysis is based on panel data for Ukrainian regional centers over the period 2015–2025. Correlation analysis to applied to identify the influence of price, income, spatial, and institutional factors. The findings indicate that housing affordability in the analyzed cities ranges between 5 and 11, corresponding to “severely” and “critically unaffordable” categories. The strongest relationship is observed between affordability and housing prices, while the impact of income remains weak and insufficient to offset price growth. The study also reveals that increased housing construction does not necessarily improve affordability, as development activity tends to concentrate in high-demand, high-price cities. Spatial constraints, including land scarcity and high density, are shown to transform agglomeration benefits into rent-driven price pressures. Special attention is given to the effects of war-related factors after 2022, which intensified structural imbalances and led to the concentration of demand in relatively safe regions. The research confirms the transformation of accessibility rent into fiscal rent, creating an institutional contradiction between local governments’ incentives to maximize budget revenues and the objective of improving housing affordability. The case of Lviv illustrates key institutional dysfunctions, including excessive densification, uncontrolled suburbanization, non-compliance with spatial planning documents, lack of land preparation mechanisms, and weak metropolitan coordination. The study concludes that the housing affordability crisis in Ukraine is fundamentally land-based and rent-driven. Improving affordability requires a systemic transformation of institutional frameworks and spatial development policies, including increasing land supply elasticity, implementing land value capture mechanisms, and strengthening metropolitan governance.

Keywords:

housing affordability, land rent, median multiple, spatial planning, housing policy, urbanization, institutional constraints, land market

References


1. Alonso, W. (1964). Location and land use: Toward a general theory of land rent. Cambridge: Harvard University Press, 1964. DOI: http://dx.doi.org/10.4159/harvard.9780674730854
2. Banister, D. (2005). Unsustainable transport: City transport in the new century. London: Routledge. DOI: https://doi.org/10.4324/9780203003886
3. Banister, D. (2011). Cities, mobility and climate change. Journal of Transport Geography, 19(6), 1538-1546. DOI: https://doi.org/10.1016/j.jtrangeo.2011.03.009
4. Cervero, R., & Murakami, J. (2009). Rail and property development in Hong Kong: Experiences and extensions. Urban Studies, 46(10), 2019-2043. DOI: https://doi.org/10.1177/0042098009339431
5. Florida, R. (2016). The new urban crisis. New York: Basic Books.
6. Glaeser, E. L., & Gyourko, J. (2002). The impact of zoning on housing affordability NBER Working Paper, 8835. DOI: https://doi.org/10.3386/w8835
7. Cox, W. (2025). Demographia international housing affordability. Orange: Chapman University. Retrieved from http://www.demographia.com/dhi.pdf
8. Merlin, P. (1977). L’urbanisme. Presses Universitaires de France. [in French].
9. Nelson, A. C., Dawkins, C. J., & Sanchez, T. W. (2004). Urban containment and residential segregation: A preliminary investigation. Urban Studies, 41(2), 423-439. DOI: https://doi.org/10.1080/0042098032000165325
10. Rethinking urban sprawl: Moving towards sustainable cities: Report (2018). Paris: OECD Publishing. DOI: https://doi.org/10.1787/9789264189881-en
11. Housing and inclusive growth: Report (2020). Paris: OECD Publishing. DOI: https://doi.org/10.1787/6ef36f4b-en
12. Stiglitz, J. E. (2024). The road to freedom: Economics and the good society. Penguin.
13. Envisaging the future of cities: Report (2022). UN-Habitat. Retrieved from https://unhabitat.org/sites/default/files/2022/06/wcr_2022.pdf
14. Urban land value capture in São Paulo, Addis Ababa, and Hyderabad (2020). WRI Working Paper. DOI: https://doi.org/10.46830/wriwp.18.00137
15. Anggara, A., & Wijaya, N. (2024). Land Value Capture: Supporting Urban Development Through Infrastructure Funding. The Indonesian journal of Planning and Development, 9, 1-14. DOI: http://dx.doi.org/10.14710/ijpd.9.1.1-14
16. Harvey, D. (2012). Rebel cities: From the right to the city to the urban revolution. London: Verso.
17. DBN B.2.2-12:2019 «Planning and development of territories» [SBS B.2.2-12:2019 «Planning and development of territories»] (2019). Kyiv: Ministry for Communities and Territories Development of Ukraine Retrieved from https://e-construction.gov.ua/laws_detail/3260441209981634046. [in Ukrainian].
18. Lysyak, N. (2025). Intehrovanyy rozvytok urbanizovanykh system [Integrated development of urbanized systems]. Dolishniy Institute of Regional Research of NAS of Ukraine. Retrieved from https://ird.gov.ua/irdp/p20250006.pdf [in Ukrainian].
19. Habrel, M., Habrel, T., & Lysiak, N. (2023). Structural and parametric spatial transformations of cities-regional centers of the Western region of Ukraine in the post-Soviet period. AIP Conference Proceedings, 2928(1). DOI: https://doi.org/10.1063/5.0170508
20. Hroshovi perekazy v Ukrayinu [Monetary transfers to Ukraine] (2026). Minfin: Website. Retrieved from https://index.minfin.com.ua/ua/economy/transfer [in Ukrainian].
21. Reytynh zabudovnykiv L'vova: khto zvodyt' bil'she i za skil'ky prodaye [Rating of developers in Lviv: Who builds more and at what price] (2025, Oct 10). Minfin: Website. Retrieved from https://minfin.com.ua/ua/realty/articles/reyting-zabudovnikiv-lvova-hto-zvodit-bilshe-i-za-skilki-prodae [in Ukrainian].
22. Tsiny na kupivlyu nerukhomosti v Ukrayini 2024: skil'ky koshtuye kupyty kvartyru [Prices for buying real estate in Ukraine 2024: how much does it cost to buy an apartment] (2024, Apr 05). VisitUkraine: Website. Retrieved from https://visitukraine.today/uk/blog/3709/real-estate-prices-in-ukraine-2024-how-much-does-it-cost-to-buy-an-apartment?srsltid=AfmBOorrbavxEJ8UHH7KKuVnPZ6ZAF3iaE2zJ8qKBUkPzbD6Z3UpPb5d#kupivlya-kvartiri-v-ukraini-vartist-na-pervinnomu-ta-vtorinnomu-rinku [in Ukrainian].