Housing Crisis in Ukraine: Critical State and Need for Reforms

At the beginning of 2026, Ukraine's housing crisis has transitioned from a chronic issue to a critical state, as reported by Danilo Hetmantsev, a member of parliament and the head of the Finance, Tax, and Customs Policy Committee, in his column for NV. He stated that more than 3 million households, which equates to nearly every third or fourth Ukrainian family, have been impacted by the destruction of residential properties. When factoring in the 4.5 million internally displaced persons and hundreds of thousands who required improved housing conditions even before 2022, the total exceeds the actual capabilities of existing programs.

Hetmantsev emphasized that today, mortgages in Ukraine are not merely a banking product but also serve as both an economic and social tool. He highlighted that the construction sector is one of the key drivers of the country's recovery. The figures support this assertion: in 2025, construction grew by 11.3% following increases of 17.8% and 31.8% in the previous years. This sector was the first to reach pre-war levels recorded in 2021.

Last year, residential construction alone amounted to 34.5 billion hryvnias. Behind each construction project are metallurgists, manufacturers of building materials, and finishing products, which together provide tens of thousands of jobs and generate billion-dollar revenues for budgets at all levels. However, despite these positive indicators, developers find themselves in a challenging position due to a lack of long-term financing. Hetmantsev pointed out that bank lending remains the primary issue for the industry.

By the end of 2025, the losses in the housing sector are estimated at 61.1 billion dollars, with 14% of all housing in the country damaged or destroyed. The war has led to significant financial losses, and according to the World Bank, one in three Ukrainians is currently classified as poor. Today, only a few can afford to buy housing with their savings, making mortgages a necessity.

Discussing the eOselya program, Hetmantsev noted that it was launched in the fall of 2022 and has since issued 24,600 loans totaling 42.8 billion hryvnias. However, when comparing these figures to the recovery needs assessed by the UN and the World Bank, which amount to 89.8 billion dollars over the next decade, it becomes clear that the current pace is catastrophically insufficient.

Hetmantsev also identified the reasons why the program is not functioning at full capacity. Firstly, there is low purchasing power among the population: teachers, medical professionals, and scientists represent only 7% of loan recipients. Given current salaries, banks find it difficult to verify their ability to service a loan over 15-20 years. Secondly, geographical limitations hinder the program's effectiveness: in frontline regions, the program is nearly non-existent. For instance, only 243 loans have been issued in Sumy, 231 in Kharkiv, and none in Kherson.

Demographics also pose a challenge: only 365 families with three children have utilized the affordable mortgage option, which constitutes a mere 1.5% of the total. For a country facing a demographic crisis, this is unacceptably low. Hetmantsev stressed that the new strategy is aimed at one million families.

He noted that in its current form, the eOselya program will not be able to address the housing issue effectively. Ukraine requires a comprehensive national program for recovery and renovation that will fundamentally change the logic of the process. 'It is time to take this step for one million families. This means a loan term of up to 25 years, an interest rate of 3-5% per annum, and a payment that does not exceed 20-25% of the family's income or is equivalent to the rental rate plus 10-20%,' Hetmantsev stated.

In his opinion, only such scale and conditions will resolve the housing crisis and provide Ukrainians with the opportunity to return home and live in their own country. As previously reported, starting in January 2026, mobilized servicemen will be eligible for preferential mortgages at a rate of 3% under the eOselya program.