The purpose of the study is to assess the role and significance of housing investments in sustainable socio-economic development of the city and to justify the multiplier effect of investments in housing on all sectors of the urban economy. The growth in housing investment boosts not only the development of the market, but also triggers a multiplicative effect in the development of other different interconnected industries. The paper suggests approach developed by the authors to the assessment of the level of urban development, which involves defining gross metropolitan product on the basis of an integrated assessment of gross value added of economic activities in the city's economy. The article presents the algorithm for the formation of gross value added in the city's economy as a result of multiplier effect of housing investments. We assess the multiplier effect of housing investments by the example of Tomsk. We reveal that multiplier effect allows obtaining four rubles of added value out of one ruble of housing investments in the city economy. The study was carried out through the methodology of the system of national accounts, statistical and structural analysis methods. We prove that the priority direction of investments in housing construction is the most important condition for sustainable social and economic development of the city. The methodology designed to justify the selection of priorities in municipal and regional investment policy. The key users of the methodology are regional and municipal administrations and potential investors.
Highlights:
Justification of significance of housing investments in the city's economy and the assessment of their role in the sustainable social and economic development of urban areas are important scientific and practical task.
The market of housing investments is a specific market; investments in the reproduction of housing stock, ie, in the production, distribution, exchange, consumption and renovation of housing, are the object of economic relations on this market.
Renovation-type housing investments that provide extended housing stock reproduction have a significant multiplier effect, providing an impetus for urban development and transforming the housing investment market into a "point of growth" in the national economy.
The authors suggest method for estimating the multiplier effect of housing investments at the level of the urban system on the basis of the production approach through the methodology of the system of National (Regional) Accounts.
The multiplier effect of housing investment is most evident in such important for the urban economy types of activities as construction, trade and provision of personal services, the production of machinery and equipment, the production of construction materials. The development and sustainable functioning of these sectors are largely determined by investment activity in housing construction.
Each ruble invested in housing construction will generate more than four rubles in the growth of gross value added in related activities. The role of housing investments in the city's economy is enormous because the effect of housing investment multiplication provides more than 36% of the gross metropolitan product.
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