The challenge of affordable housing in India

What is it about?

Over half of the world’s population lives in cities, and in places like India, this trend is growing fast. Given the rising prices of houses in cities, affordable housing is a major need for people with low incomes. To meet this need, the Indian Government launched the “Pradhan Mantri Awas Yojana (PMAY)” scheme to help people with lower incomes get affordable homes. But in five years, only 38% of the approved houses were built, and many of them remain empty, even though there’s a high demand for them. Most studies tend to focus on the problems faced on the supply side of the scheme rather than on those faced on the demand side. This study dives into the challenges faced by people in Gujarat, India, who are trying to find homes they can afford.

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Photo by Brandon Griggs on Unsplash

Photo by Brandon Griggs on Unsplash

Why is it important?

The study found some big hurdles in how PMAY is supposed to work. First, the money to build the homes came in very slowly, causing lots of delays. Also, many of the homes were bought by people with more money, and not by the people who needed them the most. Many applications from people who should have gotten these homes were rejected or delayed due to a lack of documents or errors in their forms. Plus, many people could not afford the houses and were unaware of the financial help or how to get it. This is why it is important to teach and guide the people who need these homes to get the help they deserve. Also, there is a need to ensure that these benefits actually reach the right people. KEY TAKEAWAY: This study looks at the demand side of PMAY and uses insights from people who need affordable homes and gives suggestions to make the plan work better. This research relates to the following Sustainable Development Goals: • SDG 11: Sustainable Cities and Communities • SDG 1: No Poverty • SDG 10: Reduced Inequality • SDG 3: Good Health and Well-being • SDG 9: Industry, Innovation, and Infrastructure