The fund of accumulative housing insurance of the RF children is a possible mechanism for forming a federal and municipal investment policy in the field of housing

The article deals with questions of the market faults in the formation of supply and demand of housing in Russias economy. The author, believing that housing affordability is a special feature of the States economic set-up, proposes solution of the housing problem by creating a children home insurance savings institute.The main imperfection of the housing market in the RF, according to the author, is in setting the balance at the level of solvent demand in the global mismatch between the solvent demand and its potential (social) value. Such a balance is accompanied by the effect of incomplete contracts, when inadequate wellbeing can hardly afford all possible contracts at the real estate market. In this case the state has to make up for a part of potential contracts at its own expense through various programs. However, most contracts still remain to be made.Expected result: the long-term consequences of the introduction of home insurance would be a drastically reduced demand for housing purchase outside insurance; remains a limited demand for the luxury housing and the middle class housing for the citizens who have not fallen into the category of insured persons by age or because of foreign citizenship; a sharply reduced demand for rental; there will be no demand for purchase of housing for speculation and rent; mortgage, likely, will have a limited application.