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ndia’s housing market is heating, yet middle‑class families find homeownership increasingly out of reach. Property prices have more than doubled in the last decade, with analysts projecting a 6.3 % rise this year and 7.0 % by 2026, after a 4.0 % jump in 2024. Even RBI rate cuts have only slightly eased mortgage rates; the steep price climb keeps EMIs unaffordable for many first‑time buyers. The average age of urban homeownership is shifting from the early thirties to the mid‑forties, signalling delayed wealth building.

    The affordability crisis is widening inequality, stressing rental markets, and postponing wealth creation. With supply of affordable homes lagging, the rental sector is set to expand further. Premium and luxury segments dominate, pricing entry‑level buyers out despite policy promises. Knight Frank’s 2024 report estimates a shortfall of nearly 10 million homes, a gap that could triple by 2030 if trends persist. Luxury demand remains strong, driven by higher‑income buyers, while affordable housing supply fails to keep pace, forcing many to rent.

    Post‑pandemic, affordable housing suffered as buyers grew cautious, causing new supply and sales to drop. ANAROCK’s April 2025 research shows unsold inventory in the affordable segment (<₹40 lakh) fell 19 % across the top seven cities, from 1.40 lakh units (Q1 2024) to 1.13 lakh units (Q1 2025). Conversely, luxury units (>₹1.5 Cr) saw a 24 % rise in unsold stock, from 91,125 to over 113,000 units, reflecting robust demand and new supply.

    Consumer sentiment highlights price anxiety: only 39 % of respondents in the most expensive markets worry about steep prices, while 20 % are unconcerned and 41 % moderately concerned. This mixed outlook underscores the tension between soaring prices and limited affordable options.

    In sum, India’s housing market is skewed toward high‑end properties, leaving middle‑class buyers increasingly dependent on rentals. Without a significant boost in affordable supply, the affordability gap will deepen, further delaying homeownership and widening socio‑economic disparities.