Efficiency and Effectiveness of Housing Policies in the Central and Eastern Europe Countries

Martin Lux

Abstract:

The article provides the comparison of state housing policies in six selected Central and Eastern European countries. The description of the basic elements of policy approaches is followed by an analysis of both the efficiency and effectiveness of new supply- and demand-side subsidies. For this purpose the author set particular criteria allowing evaluation of subsidies. According to the results the most effective/efficient subsidies were implemented where general policy orientated towards the rental model was combined with decentralization/deregulation in the rental sector. The worst results appeared in countries where the same orientation of policy was not accompanied by decentralization/deregulation of rental housing. The factor of housing shortage may also influence the level of efficiency and effectiveness of public subsidies.

Keywords: public subsidies, efficiency and effectiveness, social housing, housing allowances, housing privatization, comparative context.