Russian housing system reform began in the 1980s, when the public housing protection model could not meet people’s basic housing needs. Against this backdrop, the market-oriented reform of the housing system has been generally recognized within the Soviet government. After the collapse of the Soviet Union, Russia has formulated the “Housing Privatization Law” with principles of “voluntary, free and one-time payment”, and gradually begun its marker-oriented housing system transition. However, as the privatization and marketization of housing aims to get rid of the government`s responsibility for expenditure, the effectiveness of reform is not significant, but instead increases the injustice of housing allocation. As the issue of residential housing is becoming more and more acute, the main directions of reform have gradually changed from initial round of privatization and marketization into the construction of financial housing protection, promoted by the reform of public finances. During this process, the Russian government’s functions are positioned as: achieving its protection function of finance for housing and utilities through budgetary allocations, loans and investments; meeting its adjusting and management functions through housing allocations, tax incentives and financial regulations. Although facing various difficulties in finance caused by Western sanctions, falling oil prices, and the devaluation of Russian Rubles, housing protection remains one of the priorities of Russia`s budget expenditures.