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«Housing for Ukraine» — Innovative Solutions For Reconstruction
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The war has brought numerous challenges to Ukraine, and one of the most pressing is providing citizens with decent housing.
According to the Kyiv School of Economics (KSE), as of January 2024, russia inflicted direct infrastructure damage to Ukraine amounting to nearly $155 billion. The residential sector suffered the most significant losses: over 250,000 buildings were damaged or destroyed, including 222,000 private homes, more than 27,000 apartment buildings and 526 dormitories (Liga.net study). The direct damages from these destructions are estimated at $58.9 billion. As a result, over 6.5 million Ukrainians have become internally displaced persons.
The «Housing for Ukraine» project is a joint initiative by Scandinavian construction company Moelven Byggmodul AS and Itera, aimed at creating modular housing for displaced persons and citizens who lost their homes due to russian aggression. The project’s goal is to provide Ukrainians with safe, affordable and sustainable housing solutions throughout 2025 and the following years.
To ensure housing accessibility for all demographic groups, Moelven is considering implementing a «Rent-to-Own» model in cooperation with the IFC, the EU and Ukraine. This model allows tenants to gradually acquire ownership of their homes through regular payments. This is particularly relevant for those who aspire to own a home but currently cannot secure a mortgage due to the lack of a down payment.
The ‘Housing for Ukraine’ project is not only a solution to the current housing crisis but also a foundation for long-term recovery. Deploying modular homes contributes to stabilizing the social structure in regions where infrastructure has been destroyed and enables citizens to continue working and developing in their communities. Implementing this project also creates jobs and drives economic development, which is a crucial aspect of Ukraine’s reconstruction
A special focus is placed on the type of housing—modular homes. Modular housing is seen as an effective solution to Ukraine’s housing crisis because it can be deployed quickly, is cost-effective and can provide shelter for displaced families in a short time and on a large scale.
Several international organizations are actively supporting this housing need. For example, the International Organization for Migration (IOM) and development bank KfW have made significant investments in modular housing projects in Ukraine, focusing on rebuilding homes and providing temporary shelters.
The «Housing for Ukraine» project is implemented in partnership with Itera as part of the «Rebuild Ukraine» program, which addresses social and commercial projects aimed at reconstruction and fostering investments in Ukraine’s economy. One key task is leveraging Scandinavian companies’ expertise and resources to integrate modern technologies into infrastructure rebuilding, establish new production facilities and create jobs for Ukrainians.
How It Began
In November 2023, Moelven Byggmodul AS attended the Rebuild Ukraine conference in Warsaw, where the company first presented its solutions for Ukraine. During the conference, Moelven representatives engaged with officials from Ukrainian regions, government representatives, Ukrainians and Itera representatives. These events laid the groundwork for the initiative addressing urgent social needs.
Before the project launch, numerous issues required coordinated actions: How to deliver modular homes? How should they reach Ukraine? Who will fund the project? Which regions and cities are priorities?
In spring 2024, Moelven finalized its strategy for entering the Ukrainian market. In April 2024, joint efforts began, including data collection, logistics planning, funding identification and prioritization of regions.
What Has Been Achieved So Far?
In September 2024, Itera, Moelven, and EksFin executives met in Kyiv with the board of the Ukrainian Financial Housing Company (UkrFinZhytlo), which coordinates the state mortgage program eOselia, and representatives from several regions to discuss housing provision.
By November, at the Rebuild Ukraine conference in Warsaw, the parties signed a Memorandum of Cooperation to promote sustainable housing financing in Ukraine and provide affordable housing for citizens and internally displaced persons (IDPs).
A pilot project is already planned in three regions—Kyiv, Poltava, and Kirovohrad—to provide housing for IDPs. The initiative includes allocating land by communities for construction, allowing Moelven housing units to be purchased through the eOselia program and creating conditions for the full integration of IDPs into new social environments.
Moelven has several activities related to Ukraine, including:
- Pilot House for Four Ukrainian Families: On October 10, in Oslo, a contract was signed between Borodianka and Moelven to provide a house for the Borodianka community in 2025. The house is planned for delivery in March 2024, showcasing housing affordability, deployment speed and testing the full contractor chain, from logistics to on-site work.
- Social Housing Project for IDPs in collaboration with the National Reconstruction Agency.
- Commercial Housing Project for citizens who lost their homes. The plan is to implement this via the «eOselia» program with UkrFinZhytlo, under a Memorandum of Cooperation signed in Warsaw on November 13, 2024.
- Modular Schools and Hospitals Project in collaboration with Scandinavian bank Nefco.
The article was prepared by IT Association of Ukraine
