A Housing and Communal Service as a Collective Good

Introduction. The acute need to modernize the housing and utility infrastructure
and improve the quality of housing and communal services requires deep institutional
and technological transformations in this sector.

The purpose of the study is to investigate the economic nature of housing and communal services as a collective good and analyze their characteristics from the institutional theory perspective.

The research methodology involves a thematic review of the scientific works by classics (P. Samuelson, R. Coase, D. North) and modern institutionalists (A. A. Adebayo, K. R. D. Lulofs, M. A. Heldeweg) on the topic of the study.

Key results. Housing and communal services (HCSs) are of a complex economic nature since they combine the characteristics of both private and collective goods. As a collective good, HCSs are defined by consumption indivisibility and difficulty in excluding users, which necessitates their state regulation and subsidization. The primary challenge in HCS provision consists in balancing between economic efficiency and social equity. On the one hand, the housing and utilities sector requires substantial investments in infrastructure upgrades and maintenance due to its capital intensity and extended payback periods. On the other hand, the low solvency of certain segments of the population and the high social significance of these services limit the possibility of their full commercialization. The reform of the housing and utilities sector aims to eliminate monopolization, introduce transparent tariff mechanisms, and foster the development of a competitive environment. This involves not only institutional reforms, such as the reallocation of property rights and creating conditions for public-private partnerships (PPPs), but also the intensification of the use of digital technologies. Modern digital tools help increase transparency in consumption accounting, reduce costs and improve control over service delivery. An institutional approach to managing the housing and utilities sector involves a clear division of responsibilities among the state, businesses and consumers.
Conclusion. Modernization of the housing and communal services must integrate economic efficiency, social equity, and innovative technologies. The integration of digital platforms, the creation of a competitive environment, and the removal of institutional barriers are the key drivers for the sustainable development of the sector and for meeting citizens' needs.