Russia's Housing Bubble Risks Economic Stability Amid Election, War Spending
• Russia faces a housing bubble fueled by government-subsidized mortgages, with prices up 40% and half of new buyers spending 80% of income on debt
• Central bank warned cheap mortgage program could undermine rate hikes meant to curb soaring inflation
• Program extended to 2024 to shore up economy ahead of next year's election, with costs ballooning 4x to $5 billion
• Sanctions restricting investments and soldiers' death payouts also feeding bubble
• Despite war and sanctions, economy surprisingly resilient with GDP growing 3.5% amid high oil prices and military and social spending