Russia's mortgage crisis spirals as defaults hit record highs in 2025
Russia's mortgage crisis has deepened as economic pressures push more homeowners into financial trouble. The number of troubled loans has nearly doubled in a year, with record levels of defaults reported in early 2025. Rising interest rates and inflation have left many struggling to keep up with payments.
The volume of non-performing mortgages in Russia hit 296.4 billion rubles by February 2025, a record high. Overdue payments affected nearly 100,000 mortgages in that month alone. The crisis has worsened rapidly, with defaults climbing by 4.3% in just the past month.
Since 2022, economic sanctions and instability from the Ukraine war have driven up interest rates and reduced lending. Inflation and tighter credit conditions pushed mortgage defaults up by an estimated 25-30%, according to 2025 Central Bank data. The hardest-hit regions included Moscow and St. Petersburg, where financial strain peaked in 2024. By the end of 2025, twice as many Russians were selling their homes to pay off mortgages compared to previous years. The surge reflects growing desperation as households face unsustainable debt burdens.
The sharp rise in mortgage defaults highlights the ongoing economic strain on Russian households. With non-performing loans at an all-time high, more families are being forced to liquidate assets to avoid financial collapse. The trend suggests continued pressure on the housing market and lending sector in the near term.
