Abstract. The matters of housing and communal services institutional transformations, the role of the state, as guarantor of constitutional rights and freedoms to each citizen on worthy housing, by means of realization of state mechanisms at each level of management are considered in the article. The historical development of the housing market can be considered through the system of institutional changes with respect to the development of the economy and enhancement of the infrastructure. Institutes represent the rules, mechanisms providing their accomplishment, and standards of behavior which structure the repeating interactions among citizens. It becomes obvious that the institutes determine and limit the set of alternatives which are available for each economic actor, they include all forms of the restrictions created by people to give a certain structure to human relations. However it is also important to understand that institutes, being standard restrictions, create opportunities which members of the society have, thanks to the fact that the same institutes reduce uncertainty, structuring activities of individuals. The set of the formal and informal institutes created in economy represents the institutional environment.