NITI Aayog Warns Of Urban Housing Shortage In India Worsening

The report forecast that the share of people living in urban areas, which stood at 35 per cent (around 500 million) in 2021, is expected to shoot up to nearly 50 per cent by mid-century.

The rapid pace of urbanisation has already resulted in a significant shortage of affordable housing across metro, urban and semi-urban areas. Emphasising the need for urgent intervention, NITI Aayog has called upon state governments to take greater responsibility for developing affordable housing in line with the growing urban population.

The report highlights that states, such as Andhra Pradesh, Tamil Nadu, Odisha and Rajasthan, have taken the lead in implementing housing programmes aimed at the urban poor. It underlines that affordable housing should be promoted through a comprehensive policy framework to support urban development, infrastructure expansion, and employment generation.

In Andhra Pradesh, cities witnessing rapid urbanisation include Visakhapatnam, Vijayawada, Kurnool, Tirupati, Guntur and Rajamahendravaram.

According to NITI Aayog, there are presently about 13.5 crore families living in metro, urban and semi-urban areas across the country. Of these, only 7–8 crore families have access to quality housing, while an estimated 5 crore to 7 crore families face housing shortage.

Category-wise, metro cities account for around 5 crore families, with housing available for only 2 crore to 3 crore, leaving a shortfall of about 2.3 crore houses.

Urban areas have 3.8 crore families, with the shortage ranging between 1.5 crore and 2 crore homes.

Semi-urban areas house nearly 4.8 crore families, with a deficit of around 1.5 crore houses.

Rajarathnam, project director (housing), YSR Kadapa, said basic infrastructure must be provided in urban areas as the urban population continues to grow each year. He stressed that facilities should be developed in proportion to this growth.

Only by creating adequate infrastructure and acquiring land in urban fringe areas, he said, can people from poor and middle-income groups get an opportunity to own houses in towns and cities.

Present Housing Scenario in Urban Areas

Urban Category – Number of Households – Housing Availability – Housing Shortage

Metro Cities – 5 crore – 2 crore to 3 crore – 2.3 crore

Urban Areas – 3.8 crore – 1.8 crore to 2.3 crore – 1.5 crore to 2 crore

Semi-Urban Areas – 4.8 crore – Around 3 crore – About 1.5 crore

Total – 13.5 crore – 7 crore to 8 crore – 5 crore to 7 crore