Russian governor delivers rare blunt warning to Putin on soaring housing prices and plunging construction rates

Vladimir Putin’s July 28 meeting with Stavropol Governor Vladimir Vladimirov was unusually negative, with the latter warning that his region faces plummeting new construction rates and skyrocketing rent prices. Vladimirov also described an “acute shortage” of medical personnel. The governor’s frank assessment represented a departure from the typically upbeat reports delivered to the president in public meetings, journalists at Agentstvo noted. Vladimirov’s admissions are especially notable given Putin’s previous praise for Stavropol’s construction record.

Vladimirov blamed Russia’s elevated interest rates for the housing crisis, revealing that apartment prices in his region have spiked from 19,000 rubles per square meter in 2013 (about $55 per square foot) to 130,000 rubles (roughly $150) today, with premium units reaching 600,000 rubles (almost $700). Russia’s construction industry has faced mounting pressure from the Central Bank’s aggressive interest rate hikes, which reached 21 percent in October 2024. Officials didn’t begin reducing the rate until June 2025. Today, it stands at 18 percent.

Governor Vladimirov also reported severe staffing shortages across public services, with only 83 percent of doctor positions filled and emergency medical services operating at just 57 percent capacity. 

The Stavropol region, situated in Russia’s North Caucasus, borders Georgia and Azerbaijan, and serves as a key agricultural hub. The area has been relatively insulated from the direct effects of the war in Ukraine. Still, Stavropol’s proximity to conflict zones and its role in supporting reconstruction efforts in occupied Ukrainian territories have strained local resources and budgets. Vladimirov’s complaints about federal agricultural subsidies and his requests for enhanced lending support reflect broader tensions between Moscow and regional authorities over war-related fiscal pressures.