Ensuring the protection of the financial interests of investors in housing construction is an urgent problem for Ukraine, as citizens' investments in housing construction are not protected by any economic mechanism. Existing legal ways for housing construction financing are not fully capable to protect the interests of citizens in this area and provide transparent fundraising. The analysis of the dynamics of housing construction volumes during 2012-2020 showed a downward trend due to the rising real estate prices, rising interest rates on mortgages, and most of all, because of the deteriorating financial condition of the population due to the spread of coronavirus pandemic COVID-19. The analysis revealed a significant difference between the volume of commissioned and started construction of housing. This fact indicates not only a decrease in effective demand in the domestic residential real estate market, but also the likelihood of increasing number of unfinished housing projects and deepening financial risks for the citizens who invested in housing at the initial stage of its construction. An approach to strengthening the financial security of households in the process of housing construction has been developed. It is based on the proposition for investors to conclude agreements not with the developer of housing, but with a financial institution that monitors the progress of construction and transfers funds according to the schedule. The authors suggest to introduce the system of long-term housing deposits, which provides state financial incentives for their owners in the form of additional premiums to the interest rate. It is expected that such incentives will allow households to accumulate savings on housing deposits that will be used to improve housing conditions. The state policy priorities aimed at protecting the financial interests of households in the residential real estate market in Ukraine must be focused on: creation of a database with reliable and transparent information about the developers and their careful analysis to prevent problems in housing construction; involvement of banks, insurance companies and other financial intermediaries into the housing construction finance by developing appropriate deposit, credit and guarantee products; introduction of the system of long-term housing deposits, which provides state financial incentives to their owners in the form of additional premiums to the interest rate; creation of guarantee mechanisms for payment of compensations to investors in housing construction in case of the developer's bankruptcy; introduction of compulsory liability insurance for developers when financing housing construction projects; carrying out inventory of failed real estate developments and introduction of financial mechanisms and instruments to ensure their completion and commissioning; outlining legal mechanisms for the state to guarantee property rights to unfinished construction projects and future real estate objects in which citizens' funds are invested.
