The Impact of Mortgage Loans on Housing Affordability in Kazakhstan

According to the Bureau of National Statistics of the Republic of Kazakhstan, there are 287 premises per thousand inhabitants in Kazakhstan regarding the number of residential premises and the average annual population. The problem of urgent housing need in Kazakhstan is being solved by the accelerated development of housing construction and by state programs for concessional lending. Housing affordability is one of the pressing issues of the socio-economic policy of any state. One of these programs is “NurlyZher”. The main measures of state support are aimed at the construction of affordable housing for the general population. To solve housing affordability issues, the “7-20-25” program was developed in 2018, which has the most significant demand. Therefore, it is essential to understand whether the population can take out a mortgage. This study builds on research by the Center for Applied Economics Research (AERC) on housing affordability in the country. This study uses two indicators, HPI and HPA, calculated for significant cities and regions. For the calculations, the official statistics of the BNS between 2015 – 2020 were used. 
According to results based on the HPI indicator, residents cannot save for housing with an average salary without taking into account expenses. The HPA indicator for four mortgage programs, “7-20-25” was more accessible. However, calculations were made on average data, but in practice individually. The programs developed by the state are effective since the situation with the affordability of housing has improved over the past five years.

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