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The Impact Of Covid-19 And Preferential Mortgage Lending Programs On Mortgage Lending: Evidence From Russia

Author

Listed:
  • Polina A. Popova

    (National Research University Higher School of Economics)

Abstract

This study explores the relationship between preferential mortgage programs and regional mortgage lending in Russia during the COVID-19 pandemic and the subsequent recovery period. Using quarterly data from 87 Russian regions, the research examines how preferential mortgage programs — Standard Preferential, Family, Far Eastern, and IT — were associated with lending growth and delinquency rates. The findings underscore the complex interplay between housing policies, regional economic conditions, and mortgage market activity under varying external economic shocks. The study reveals that overall mortgage lending volumes were higher during the pandemic and post-pandemic periods in regions with greater adoption of preferential mortgage programs. This pattern suggests that these programs supported housing market activity, particularly in economically resilient regions. However, regions with higher program utilization also experienced elevated delinquency rates, reflecting the challenges of balancing increased borrowing with financial risks. Program-specific analysis highlights variations in lending dynamics and emphasizes the importance of tailoring housing policies to regional and demographic needs, providing insights for designing adaptive support measures that promote mortgage market stability and economic recovery.

Suggested Citation

  • Polina A. Popova, 2025. "The Impact Of Covid-19 And Preferential Mortgage Lending Programs On Mortgage Lending: Evidence From Russia," HSE Working papers WP BRP 97/FE/2025, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:97/fe/2025
    as

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    References listed on IDEAS

    as
    1. Qian, Xianhang & Qiu, Shanyun & Zhang, Guangli, 2021. "The impact of COVID-19 on housing price: Evidence from China," Finance Research Letters, Elsevier, vol. 43(C).
    2. Piero Montebruno & Olmo Silva & Nikodem Szumilo, 2025. "Judge Dread: Court severity, repossession risk and demand in mortgage and housing markets," The Economic Journal, Royal Economic Society, vol. 135(669), pages 1677-1710.
    3. Ianina Roshchina & Natalia Ilyunkina, 2021. "Impact of Government Measures to Support Mortgage Lending on Housing Affordability in Russia: Regional Evidence," Russian Journal of Money and Finance, Bank of Russia, vol. 80(4), pages 98-123, December.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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