New Format: Renting Without Compromise. Why Housing Prices Remain High Even Amid Falling Demand
The cost of renting housing is one of the markers of social tension and economic inequality, which is acutely felt in Ukraine over the past two years. The situation on the market seems paradoxical: demand is gradually decreasing, but prices remain stable or even slowly grow. According to DIM.RIA, the biggest drop in demand is observed in the Lviv, Poltava, Chernihiv, and Chernivtsi regions minus 32–36%.
Yet this does not affect the main trend: “Uzhorod remains the city with the highest rental prices. There, you will have to pay about 20,000 hryvnias per month for a one-room apartment. At the same time, in Lviv and Kyiv, this cost will be at the level of 17,000,” noted Olena Unanyan from LUN.
Statistics confirm: according to DIM.RIA, in the Transcarpathian region, the average rent for a one-room apartment exceeds 20,500 UAH. In Kyiv, Lviv, and Volyn, it is about 15,000 UAH.
The situation in the Kharkiv region appears the most contrasting: here, housing is the cheapest “a one-room apartment costs an average of 4,500 UAH,”.
These figures are easy to explain: western regions, since 2022, have become a temporary refuge for hundreds of thousands of internally displaced persons, and competition for affordable housing keeps prices at record levels.
The real weight of rent in a family’s budget is felt most strongly in the west of the country. “The highest share is paid by renters in Uzhorod: 76% of their monthly income goes to pay for housing. In Lutsk, this figure is 66%, in Lviv and Ivano-Frankivsk 60%, in Kyiv 55%. In contrast, in Kharkiv you will have to pay only 22% of your family budget for a one-room apartment, in Zaporizhzhia 23%, in Mykolaiv 29%” (LUN data).
Thus, even not the most luxurious housing in western cities often becomes unaffordable for the average family without additional sources of income or “housing subsidies” from relatives.
Despite declining demand, both rental and purchase prices do not show significant declines. In Kyiv and Lviv, rental rates have increased by 3% over the year. According to LUN, to “buy out” an apartment by renting it, in most cities, it would take from 9 to 16 years of uninterrupted rent.
“In Chernihiv and Rivne, it will take more than 16 years, in Kharkiv, Odesa, and Chernivtsi more than 15, in Lviv, Ternopil, and Kropyvnytskyi more than 14 years, in Kyiv, Zhytomyr, and Cherkasy more than 13 years, the least time will be needed in Ivano-Frankivsk a little more than 9 years,” – report LUN.
All these indicators change monthly depending on market fluctuations, demand, wages, and the war situation.
Despite record high prices and falling demand, developers continue building. This indicates confidence in the medium-term prospects of the market and expectations of renewed internal migration and economic stabilization.
At the same time, square meter prices in new buildings are rising. “The top 5 cities in terms of price growth per square meter on the primary market over the past year in fifth place is Lutsk, where the price increased by 8% per square meter. Fourth is Ivano-Frankivsk, where the price rose by 9%. Third place is Odesa a growth of 13%, Khmelnytskyi 13%, and Ternopil 15%,” emphasizes Olena Unanyan.
In certain cities, price increases have reached a record 40–75% since early 2022.
Expert recommendations on real estate: how to act in this market
The current situation on the rental and sale market in Ukraine is difficult, but not hopeless.
- Renters should look for flexible payment models for example, negotiate discounts for a long term or for the low season (winter, early spring), consider offers not only in central areas but also in more remote districts.
- Landlords should carefully analyze demand, work with verified tenants, avoid overpricing if the property stands vacant for more than a month. Market dynamics are currently unstable flexibility in negotiations can yield a better result than waiting for an “ideal” rate.
- Buyers do not rush to buy if the goal is investment, not personal residence. Property values are at a peak, and the market is not yet predictable.
- Investors monitor demographic trends and the recovery of regions to which internally displaced persons may return or where new jobs appear.
- Developers work on improving the energy efficiency of new projects and consider that the future lies with the middle class and young families, who will seek a balance between quality and affordability.
Post List
The Ukrainian real estate market is a multidimensional system that quickly responds to changes in demand, migration, security risks, and the economic situation. High rental prices, even amid falling demand, are explained by migration, limited supply in certain regions, and changes in household income structure.
For consumers, this is a time for cautious, calculated decisions; for investors, it’s a time for careful study of trends not only for a month, but for a year ahead.
The main advice is to act strategically, avoid impulsive decisions, focus on transaction transparency, and realistic assessment of financial capabilities. The housing market will not stabilize instantly, but right now, the foundations of a new demand and pricing structure are being laid, which will determine the rules of the game for the coming years.
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