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Rebuilding Ukraine's Cities: Maximizing Benefits and Minimizing Costs

Author

Listed:
  • Edward L Glaeser

    (Harvard University and NBER)

  • Martina Kirchberger

    (Department of Economics, Trinity College Dublin)

  • Andrii Parkhomenko

    (University of Southern California)

Abstract

This paper discusses the rebuilding of Ukrainian cities. We start by outlining key facts about Ukraine and its cities: (i) the country's population is declining; (ii) there is a shift in demand for housing from east to west; (iii) Kyiv's advantage is growing; (iv) house prices are rising in Kyiv and western cities, (v) Ukraine's cities are slow and congested. We then present a theoretical framework for maximizing the benefits of Ukraine's rebuilding effort to highlight the welfare effects of different allocations of post-war infrastructure. Finally, we consider the cost curve for reconstruction, as determined, in particular, by the cost of materials, labor, the industrial organization of the building industry and public practices in procurement and regulation. We highlight three broad strategies for shifting the cost curve: openness, standardization and investing‐in‐investing. We conclude by outlining areas for future research.

Suggested Citation

  • Edward L Glaeser & Martina Kirchberger & Andrii Parkhomenko, 2026. "Rebuilding Ukraine's Cities: Maximizing Benefits and Minimizing Costs," Trinity Economics Papers tep0226, Trinity College Dublin, Department of Economics.
    • Handle: RePEc:tcd:tcduee:tep0226
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    File URL: https://www.tcd.ie/Economics/TEP/2026/TEP0226.pdf
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    References listed on IDEAS

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    1. Ahlfeldt, Gabriel M. & Pietrostefani, Elisabetta, 2019. "The economic effects of density: A synthesis," Journal of Urban Economics, Elsevier, vol. 111(C), pages 93-107.
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    2. Yuriy Gorodnichenko & Maurice Obstfeld, 2026. "You only live twice: Financial inflows and growth in a westward-facing Ukraine," Working Paper Series WP26-1, Peterson Institute for International Economics.

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    Keywords

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    JEL classification:

    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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