In India, 30 per cent of urban residents live in slums, highlighting the demand for affordable, environmentally secure housing. Delhi’s housing shows stark imbalances: low-density, high-income areas like Lutyens Delhi occupy disproportionate land compared to crowded unauthorised colonies and resettlement areas, where 73 per cent of the population resides on just 56 per cent of the land. These areas lack basic amenities like schools, greenery, and open spaces.

Government initiatives like PMAY aim to address housing issues by offering financial aid for self-built homes or group housing. However, effective urban planning and land allocation remain critical. Odisha’s Jaga Mission legalises slum land ownership, enabling access to housing finance. Surat integrates affordable housing into its urban fabric, avoiding peripheral ghettos. Yet, challenges persist, especially in high-rise developments that are costly to build, maintain, and environmentally inefficient.

Low-rise, high-density housing offers a viable alternative. It is affordable, resilient to infrastructure disruptions, and compatible with sustainable technologies like solar energy. High-rise buildings increase carbon emissions and maintenance costs while reducing thermal performance and social connectivity. Urban planning must prioritise low-carbon, affordable typologies with adequate open spaces and environmental safeguards. India’s future housing demand will largely be met through self-built homes or small-scale developers, as large builders can only address a fraction of the need. Low-rise developments, integrating nature and community spaces, are essential for sustainable urban growth. Proper planning ensures compact cities with good light, ventilation and social inclusivity, supporting both environmental and societal well-being.

On affordable housing

Shilpa Kumar: As impact investors, we were intrigued by the aspirations of India’s “next half billion”— drivers, carpenters, electricians — who earn around

Rs 25,000 a month and drive the nation’s growth. As India urbanises, with cities becoming major job hubs, we wondered: what happens to their quality of life? This series explored that question from various angles, with housing as a central focus.

A house is crucial for three reasons: first, it is the foundation of personal well-being, bringing families together and supporting health, education and social stability. Second, housing enables livelihood by providing a base for economic activity. Finally, for low-income families, owning a house can break the cycle of poverty and set them on a better trajectory. Affordable housing in cities faces three interlinked challenges. The first is informal titles. Rapid urban migration has outpaced city governance and land laws, leaving many without formal ownership. This leads to the second issue: informality of services. Without formal recognition, access to utilities like electricity, water and sanitation becomes difficult. Third, informal incomes make accessing housing finance nearly impossible. Together, these issues define the lived experience of the next half billion.

On challenges for affordable housing in India

Debarpita roy: A recent report by an industry association and a real estate consultancy defined affordable housing as homes priced up to Rs 50 lakh. According to banking benchmarks, this corresponds to households earning Rs 10–12.5 lakh annually (about Rs 1 lakh/month). However, the Ministry of Housing and Urban Affairs under Pradhan Mantri Awas Yojana Urban (PMAY-U) defines the middle-income group as earning Rs 9 lakhs or below annually.

Affordable housing policy primarily focusses on the Economically Weaker Section (EWS), defined as households earning Rs 3 lakhs annually (Rs 25,000/month). By standard affordability benchmarks (4–5 times annual income), EWS households can afford homes priced Rs 12–15 lakh if they have access to institutional finance. Without formal finance, affordability drops drastically to Rs 3–4 lakh. Data from the National Sample Survey and All India Debt and Investment Survey confirm this.

EWS households face significant challenges. For instance, the development cost of a 400-square-foot flat in 2024–25 is at least Rs 12 lakh but EWS affordability is only Rs 4 lakh. The remaining Rs 8 lakh must be subsidised either directly by the government or through cross-subsidization — supported by affordable housing policies like extra FARs, TDRs, and higher density norms.

EWS housing requires targeted attention. The term “affordable housing” is too broad and obscures the urgent needs of EWS households, who represent 99 per cent of the housing shortage. Addressing this segment is critical to bridging the affordability gap.

On problems with housing

Parul Agarwal: India’s housing sector faces a dual challenge: addressing inadequate housing stock and preparing for 400 million new urban residents by 2050. Over one-third of urban residents live in informal housing, lacking basic amenities like toilets, water and durable structures. This inadequacy is stark, with 40 per cent of Delhi residents living in substandard housing.

While housing is often seen as an investment for financial returns, there’s a compelling need to reframe it as a human right. Much like food and clothing are essential, housing should be viewed as integral to dignity and well-being. For many, especially low-income groups, housing is not merely an asset but a fundamental necessity. Policies and regulations must evolve to reflect this perspective, moving beyond technical standards that deem 250 square feet adequate for families.

Housing inequality is significant, with the bottom 50 per cent experiencing inadequacy levels of 0.4–0.6 compared to 0.2 for the top 40 per cent. This disparity calls for a shift in policy, financing and regulatory approaches. Housing solutions must consider the diverse needs of urban populations, from temporary migrants to settled families and young professionals. Lastly, housing should not exist in isolation but as part of an ecosystem that ensures quality of life. This involves understanding the needs of those for whom housing is built, integrating rental options, and adapting typologies to suit varied demographics. A human-rights-centered lens may inspire innovative, inclusive solutions to India’s pressing housing crisis.

On issues faced by migrants

Mukta Naik: India’s rapid urbanisation is significantly fuelled by migration, with a third of the population classified as migrants. Among them, rural-to-urban and urban-to-urban migrants make up 20 per cent each, spanning diverse groups such as aspirational middle-class households earning Rs 25,000–Rs 30,000, construction workers, and seasonal rural-urban labourers. These individuals often reside in informal rentals, which lack tenure security, proper regulations, and quality standards.

The rental housing market, predominantly informal, has long been overlooked in policy discussions, coming into focus only during the COVID-19 pandemic. The Affordable Rental Housing Complexes (ARHC) scheme, now part of PMAY’s second phase, is a step toward addressing these issues. However, large-scale, formal rental solutions remain scarce, even for higher-income segments like students or young professionals. A key challenge is that many urban residents, especially younger people in gig economies or temporary jobs, do not aspire to own homes immediately. Their housing needs differ, focussing on flexibility and affordability. Despite this, the rental market fails to deliver adequate supply at scale, leaving lower-income groups in particularly precarious situations.

The complexity of rental housing demands a rethinking of the ecosystem, balancing market-driven solutions with targeted government interventions and subsidies. Policies must account for the evolving aspirations and economic realities of urban migrants, ensuring secure, quality and affordable rental options.

On government intervention

Sonal Sharma: I work with SEWA, a network of organizations run by women workers in the informal economy—street vendors, construction workers, agricultural laborers, and domestic workers. These workers lack social protection and benefits, and their living conditions reflect their precarious employment. In urban India, many women work from home, making their homes both a shelter and a workspace. Home-based workers, who dominate the informal sector, often earn only Rs 5,000– 7,000 monthly, yet their homes serve as vital economic assets.However, poor infrastructure—unpaved roads, inadequate sanitation, lack of ventilation, and precarious housing—hinders their productivity. Climate change exacerbates these challenges, with extreme weather forcing many to reduce their work hours significantly, causing income losses. Informal settlements, densely packed and poorly ventilated, intensify heat-related issues, creating a vicious cycle of loans and rising temperatures. Additionally, many live near landfills, facing health risks due to poor drainage and exposure to waste. Urban growth hinges on improving these workers’ housing to support their livelihoods.