Importance The article addresses State affordable housing program implementation through increasing the investment appeal for the low-cost housing developers. Objectives We reveal the specifics of costs in the construction of economy and comfort class housing and their impact on financial performance of the developer. Methods The study draws on methods of margin analysis, operational analysis, the method of higher and lower points of linear function output. Results The use of mathematical tools for linear function output and the margin analysis enabled to reveal that in practice investment companies solve the problem of low profitability of economy-class housing by the construction of more expensive comfort class housing thus manipulating the distribution of fixed costs. As a result, the possibility of covering the general management costs of the investor from one meter of any housing is equalized. Conclusions The problem may be solved by creating a database of standard economy class housing projects with mandatory allocation of variable and fixed costs of construction of each type of facility per square meter of finished housing. The data will permit construction companies to widely employ the opportunities of margin analysis, in particular, to define the lower limit of price per square meter, breakeven production volume and financial result of one object and of the entire organization for the given period. However, the problem cannot be solved by using only market approach. The State support through government program financing will ensure low cost of housing.
Leonova L.B., Zasukhina V.S. [Criteria for affordable housing in Russia]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2016, no. 12, pp. 111–124. URL: Link (In Russ.)
Kaverzina L.A., Kubasova T.I., Bel'skii O.K., Dobrya A.V. [The state of the construction market in Irkutsk region and Bratsk]. Problemy sotsial'no-ekonomicheskogo razvitiya Sibiri = Issues of Social-Economic Development of Siberia, 2017, no. 2, pp. 9–15. (In Russ.)
Svetnik T.V. [Adjusting housing construction strategies under the housing crisis]. Izvestiya Baikal'skogo gosudarstvennogo universiteta = Bulletin of Baikal State University, 2015, vol. 25, no. 6, pp. 941–946. (In Russ.)
Medyanik Yu.V. [On Prospects of the Economical-Class Housing Market]. Zhilishchnye strategii = Russian Journal of Housing Research, 2014, vol. 1, no. 1, pp. 45–60. (In Russ.)
Korotkova O.I. [The role of the State in the system of housing mortgage lending and main indicators of housing mortgage lending]. Zakonnost' i pravoporyadok v sovremennom obshchestve = Law and Public Order in Modern Society, 2014, no. 20, pp. 25–36. (In Russ.)
Garipova Z.L. [A role of residential mortgage loan in supporting economic growth]. Finansy i kredit = Finance and Credit, 2014, no. 32, pp. 56–61. URL: Link (In Russ.)
Kubasova T.I., Kaverzina L.A. [Changing priorities in State financial support for housing policy programs]. Izvestiya Baikal'skogo gosudarstvennogo universiteta = Bulletin of Baikal State University, 2016, vol. 26, no. 6, pp. 947–954. (In Russ.)
Grushina O.V., Khomkalov G.V. [Problems of housing availability in the context of the contemporary developments in economic science methodology]. Izvestiya Irkutskoi gosudarstvennoi ekonomicheskoi akademii, 2011, no. 5. (In Russ.) URL: Link
Kotlyarov M.A. [Real estate market in the system of financial stability supporting by the Central Bank of the Russian Federation]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience, 2015, no. 39, pp. 21–31. URL: Link (In Russ.)
Ryazanova E.A., Rygalina N.G. [Acquisition economy-class housing as a way of realization of the constitutional right to housing citizens]. Vestnik Tverskogo gosudarstvennogo universiteta. Ser.: Pravo = Herald of TvSU. Series: Law, 2016, no. 2, pp. 141–153. (In Russ.)
Moiseenko I.V., Noskova E.V. [Changes in the supply structure in the residential real estate segment: Economy-class and low-storey residential facilities]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2013, no. 19, pp. 24–31. (In Russ.)
Zharkaya G.F. [The affordable housing market in the Russian Federation: Status and areas for regulation]. Vestnik Cherepovetskogo gosudarstvennogo universiteta = Cherepovets State University Bulletin, 2012, no. 40-3, pp. 30–31. (In Russ.)
Ostryakova Yu.E. [Features of economy class housing segment]. Genezis ekonomicheskikh i sotsial'nykh problem sub"ektov rynochnogo khozyaistva v Rossii = Genesis of Economic and Social Problems of Subjects of Market Economy in Russia, 2015, vol. 1, no. 9, pp. 95–98. (In Russ.)
Dmitrieva T.N., Semerkova L.N., Egorova K.N., Levina I.Z. [Portrait of the consumer of economy-class housing (the case of Penza)]. Nauchnoe obozrenie. Ekonomicheskie nauki = Scientific Review. Economic Sciences, 2015, no. 1, pp. 139–139. (In Russ.)
Zaitseva I.A., Shutenko V.V., Ostryakova Yu.E. [Algorithmical model of house affordability rising in the region]. Sovremennye naukoemkie tekhnologii. Regional'noe prilozhenie = Modern High Technologies.Regional Supplement, 2012, no. 1, pp. 23–31. URL: Link (In Russ.)
Pechenskaya M.A. Stroitel'stvo zhil'ya ekonom-klassa kak prioritet gosudarstvennogo upravleniya. V kn.: Ekonomicheskie aspekty upravleniya stroitel'nym kompleksom v sovremennykh usloviyakh: sbornik statei [Construction of economy class housing as a priority of public administration. In: Economic aspects of managing the construction complex in modern conditions: a collection of articles]. Samara, Samara State University of Architecture and Civil Engineering Publ., 2015, pp. 169–175.
Baronin S.A., Yankov A.G., Lunyakov M.A. [Managing the cost of ownership of real estate in life cycles of its reproduction: The construction of economy class housing case]. Sovremennye problemy nauki i obrazovaniya, 2015, no. 1-2. (In Russ.) URL: Link
Kiselitsa E.P., Nechaeva E.S. Issledovanie prakticheskoi tsennosti metodov deleniya zatrat na postoyannye i peremennye. V kn.: Matematicheskie metody i modeli v upravlenii, ekonomike i sotsiologii [Study of the practical value of methods of dividing costs into fixed and variable. In: Mathematical methods and models in management, economics and sociology]. Tyumen, Industrial University of Tyumen Publ., 2014, pp. 196–201.
Kovaleva A.M., Kukanova N.V. [Internal audit management as part of management organization of building control]. Fundamental'nye issledovaniya = Fundamental Research, 2013, no. 8-1, pp. 143–147. (In Russ.)
Grushina O.V., Khomkalova I.G. [New Possibilities of Marginal Analysis in Construction]. Gosudarstvennoe upravlenie. Elektronnyi vestnik. 2011, no. 28. (In Russ.) URL: Link