Housing for all in India by 2022 – KPMG Report
Introduction: The Vision of “Housing for All”
The concept of “Housing for All” is a global aspiration aimed at ensuring that every individual, regardless of their economic status, has access to safe, affordable, and dignified housing. In urban areas, this vision faces significant challenges due to rapid urbanization, population growth, and income disparities. With an estimated housing shortage of 19 million units in urban India alone, the urgency to address this issue cannot be overstated. The majority of this deficit affects Economically Weaker Sections (EWS) and Low-Income Groups (LIG), who struggle to afford homes priced above INR 5 lakh. However, with rising household incomes and strategic interventions, there is hope for bridging this gap. This article explores the dimensions of the housing crisis, potential solutions, and the role of vacant housing stock in achieving the goal of “Housing for All.”
Section 1: Understanding the Housing Crisis
The Magnitude of the Shortage
Urban areas in India are grappling with a severe housing shortage, with an estimated 19 million units required to meet current demand. A staggering 95.6% of this shortage pertains to EWS and LIG households, who find it difficult to afford housing priced above INR 5 lakh. These groups often live in informal settlements or slums, lacking access to basic amenities such as clean water, sanitation, and electricity. The lack of affordable housing not only impacts their quality of life but also exacerbates social and economic inequalities.
The Role of Income Growth
Despite these challenges, there is a silver lining. Strong growth in household incomes in urban areas is expected to uplift a significant number of EWS and LIG households into higher income brackets. This upward mobility could shift the demand dynamics, with more families aspiring for better living conditions. By 2022, the majority of housing demand is projected to come from the LIG and Middle-Income Group (MIG) segments, which together constitute 50% of the total housing demand. This transition underscores the need for policies that cater to the evolving needs of urban households while ensuring affordability remains a priority.
For more insights into the housing crisis, you can refer to this report by the Ministry of Housing and Urban Affairs .
Section 2: Bridging the Gap Through Strategic Investments
The Financial Requirements
Addressing the urban housing shortage requires substantial financial investment. Estimates suggest that achieving “Housing for All” in urban areas would necessitate an investment of approximately USD 2.3 trillion. Such a massive undertaking demands collaboration between the government, private sector, and financial institutions. Public-private partnerships (PPPs) can play a pivotal role in mobilizing resources and ensuring efficient implementation of housing projects.
Leveraging Vacant Housing Stock
One overlooked solution to the housing crisis lies in the occupation of vacant houses. Data indicates that there are about 9 million vacant houses in urban areas. If these properties are utilized effectively, they could significantly reduce the housing deficit. Occupying these vacant units would not only alleviate the shortage but also lower the overall investment requirement to around USD 2 trillion. This approach highlights the importance of policy measures that encourage the use of existing housing stock rather than focusing solely on new constructions.
To learn more about leveraging vacant housing, visit this analysis by the World Bank .
Section 3: Policy Interventions for “Housing for All”
Affordable Housing Schemes
Governments worldwide have recognized the importance of affordable housing schemes in addressing the housing crisis. In India, initiatives like the Pradhan Mantri Awas Yojana (PMAY) aim to provide affordable housing to all by 2022. Under this scheme, subsidies and incentives are offered to developers and beneficiaries to make housing more accessible to EWS and LIG households. Expanding such programs and ensuring their effective implementation is crucial for realizing the vision of “Housing for All.”
Incentivizing Private Developers
Private developers play a critical role in meeting housing demand. To encourage their participation, governments can offer tax breaks, land subsidies, and streamlined approval processes. Additionally, regulatory reforms that simplify zoning laws and reduce bureaucratic hurdles can attract more players to the affordable housing segment. By creating a conducive environment for private investment, policymakers can accelerate progress toward universal housing.
For detailed information on PMAY and related schemes, check out this official government portal .
Section 4: The Road Ahead
Community Participation and Awareness
Achieving “Housing for All” is not just the responsibility of governments and developers; it requires active participation from communities. Raising awareness about available housing schemes and encouraging community involvement in planning and execution can lead to more sustainable outcomes. Empowering local bodies and residents’ associations to take ownership of housing projects ensures that solutions are tailored to the specific needs of each area.
Technological Innovations
Technology can be a game-changer in addressing the housing crisis. From using prefabricated construction techniques to reduce costs and timelines to implementing digital platforms for property registration and allocation, technological advancements can enhance efficiency and transparency. Governments and stakeholders must embrace innovation to overcome traditional barriers in the housing sector.
To explore how technology is transforming housing, read this article by McKinsey & Company .
Conclusion: A Collective Effort Toward “Housing for All”
The dream of “Housing for All” is within reach, provided we adopt a multi-pronged approach that combines financial investments, policy reforms, and community engagement. While the current housing shortage poses significant challenges, opportunities abound to bridge the gap through strategic interventions. By leveraging vacant housing stock, incentivizing private developers, and harnessing technological innovations, we can create a future where everyone has access to safe and affordable housing. Achieving this vision will require sustained efforts from all stakeholders, but the rewards—a more equitable and prosperous society—are well worth the endeavor.
For further reading on global housing initiatives, visit UN-Habitat’s website .