This study provides a broad overview of the private housing market in central and eastern Europe and some of the CIS --its history, current condition, and implications for the overall economy. It highlights regional differences, describes the different policy choices that have been made, and evaluates potential problem areas and the policy options for addressing them. The paper begins with a description of housing in these countries before and during the transition phase to market economies. Next, the current state of the housing market in this region is examined with an emphasis on its institutional development and size. A major objective is to ascertain the degree to which these markets are now similar to those observed in more developed Western economies. For the observed differences, an attempt is made to understand to what degree they are due to their being emerging markets and to what extent they are due to the socialist past and the complications that arose from the economic crisis that accompanied their transition to market economies. The implications for the housing market resulting from these countries’ further integration into the global financial system are also explored.