Affordable housing is a problem that many countries are taking stock of, world over. In India, the problem is much more stark with an estimated shortage of around 18 million houses, with 99% of this in the economically weaker sections of society. This paper sets out the definitions of affordable housing in India and across the world; the issues with the various definitions of affordable housing; the institutions and agencies responsible for formulating and implementing affordable housing policies in the state; the opportunities and challenges in affordable housing as well as a discussion on learnings from international experience in this sector.

Affordable housing is fast taking centre stage internationally as well as in the national agenda in India. With housing recognized as a basic need, governments at every level are discussing ways and means to provide access to housing for their citizenry. The importance of affordable housing is neatly captured in the following statement by the Affordable Housing Institute quoting Rakesh Mohan, Deputy Governor of the RBI, in 2007 “.future national competitiveness and economic success will depend on the comparative efficiency of cities. Because housing is where jobs go to sleep at night, the quantity, quality, availability and affordability of housing becomes a key component in national economic competitiveness”. The role and function of housing is multifaceted e housing choices impact access to infrastructure, employment, household wealth, health, education, poverty levels, maternal and child mortality, women’s participation in workforce, and many other wellbeing indicators.