India – Affordable Housing – An Academic Perspective on Policy

Affordable housing is discussed in the backdrop creating important targeted policies aimed at making financing more accessible, providing mechanisms such as interest rate subsidies, or favorable terms on par with infrastructure financing. It says that, Housing affordability is a multi-faceted measure, and while affordability is commonly defined using the expenditure method, there are other perspectives to affordability as well, as discussed in the next sections. It also delineate that, demand drivers for affordable housing in India are several. First is the progressive urbanization hand in hand with a growing urban population, from 109 million in 1971 to 377 million in 2011 toward a whopping 600 million by 2030. The role and function of housing is multifaceted – housing choices impact access to infrastructure, employment, household wealth, health, education, poverty levels, maternal and child mortality, women participation in workforce, and many other wellbeing indicators. As India seeks to improve its living conditions on a large scale, access to affordable housing becomes the first major stumbling block for its citizens.