In India an affordable housing is concern as major  policy  of the government in National Housing and Habitat Policy (2007). The  affordable housing or low cost housing is  generally refers to cost effective housing  based on low cost technology that ensures quality and durability; as compared to more commonly used technologies and affordable housing policy is primarily designed to provide low cost housing for lower middle income groups and lower income groups and economically weaker people of the society.

The concept of affordable housing to low cost housing is applicable across all income categories. The affordability of a household in a given location is an interactive outcome of the house price, household income, spending and saving behavior and other demographic factors like size of the household. It is recognized that affordability is relative to geographical area, time and income category.