Houses are a basic human need. It has been one of the priorities of the Government of India (GOI) right from the First Five Year Plan to date. The government has provided various fiscal incentives to promote housing on both, the demand and supply sides. Since independence, a large number of schemes have been launched but the target of affordable housing for all has not been achieved. Lack of affordability is a problem for Lower Income Groups (LIG) and Middle Income Groups (MIG) in most of the cities of the country. However, this paper shows that excessive affordability is not a problem in small cities, unlike metropolitan cities.