BS EDIT: Affordable housing: Bridging the growing gap

By Business StandardPublished On Dec 13, 2024

Rising affordability challenges

Pandemic distress and rising loan rates reduced affordable housing sales from 54% (2018) to 26% (2024), with developers focusing on luxury

The scale of crisis

India faces a 31.2 million affordable housing shortage by 2030, with a current deficit of 10.1 million as demand outpaces supply

Price hikes deepen gap

Mumbai's launch prices rose 8% CAGR for <30 sq m units (2019-2024), while larger units grew 4.4%, deterring developers and buyers

Economic consequences

Unaffordable housing erodes workers' wage premiums, raises employer costs, and enables exploitation by wealthy developers in a tight market

Policy imperatives

Expand housing schemes, develop satellite cities with robust infrastructure, and allow higher floor area ratios to maximise land use

Unlocking potential solutions

Repurpose public lands, build worker housing near workplaces, and provide financing for developers and first-time buyers to boost affordable housing