Problems in russia’s Housing and Utility Sector Are Becoming Systemic: Accidents and Debts Are on the Rise

The crisis in russia’s housing and utility sector is worsening due to the high level of infrastructure wear and tear and slow renewal. In the regions, the degree of wear and tear reaches 40–90 %, with the worst indicators in the temporarily occupied Sevastopol (90 %), North Ossetia (57 %), and Lipetsk region (56 %). Only 1.9–2 % of networks are modernized each year, while at least 4 % should be modernized for stabilization.

This results in massive accidents: in the 2023/2024 season, 109 accidents were recorded in Tula region, 232 – in Kaluga region, and 1,224 – in Sverdlovsk region. In St. Petersburg, there were 376 technological failures in the 2024/2025 season.

Against the background of growing problems, members of the state duma proposed a five-year ban on the construction of high-rise buildings in settlements with an infrastructure deficit of more than 50 %.

Tariffs dealt an additional blow to the population: from July 1, they rose by an average of 13.4 % across the country. In moscow, the indexation was 15 %, in Moscow region – 18.3 %, in Kuzbass – 19.8 %, in Arkhangelsk region – 20 %, and in Perm region – 21 %. The absolute record was set in Izhevsk, where the rise reached 38 %.

The increase in costs makes the russians take out loans: almost half of the clients of microfinance organizations borrow money to pay for housing and utility. In the first half of the year, the number of applications increased from 4.28 million to 4.4 million compared to last year. Against this background, managing companies are proposing that they be allowed to sell the housing and utility debts to collectors.