Everything you need to know about affordable housing

The term affordable housing means different things to different sections of the society. By definition, "Affordable housing refers to housing units that are affordable by that section of society whose income is below the median household income." Affordable housing mainly caters to the housing needs of the lower (LIG) and middle income (MIG) groups. People whose annual income falls under Rs.1 lakh per annum fall in the lower income group category whereas people whose annual income ranges between Rs.6 and 18 lakhs fall in the middle income group.

People in these income groups form a major part of the country’s population. They comprise of the workforces that run the economy of the country. It is for this reason that it is extremely important to provide affordable housing facilities for them.

In recent times, there have been several initiatives by the government that have boosted affordable housing sector. For example, it is seriously looking into the betterment of accessibility - read reduced commute times. Lack of accessibility has been one of the top reasons why low-cost housing was inconvenient and inaccessible for whom it was made. Even if such housing is outside of the main city, improved connectivity makes distances shorter and such areas more viable and desirable as residential destinations.

In the 2012, the Housing and Urban Poverty Alleviation Ministry made an upward revision on the criteria that defines the economically weaker classes. Families with an annual household income of up to Rs 1 lakh are now come under the classification of Economically Weaker Section (EWS). This was a significant change from the earlier limit of Rs. 5, 000/month or Rs. 60,000 annually. The category of Lower Income Group or LIG also saw an upward revision too - now, families with an annual income of between Rs. 1-2 lakh came under the LIG category. Previously, the definition applied to families earning Rs 5001-10000/month or Rs 60000-120000 annually.

People who fall in these categories form the backbone of society. They provide services and form the workforce that runs the economy. But these are the people who prone to migrating out of the cities due to lack of affordable housing and the lack of accessibility of good transport.

Residential property in India and especially residential property in Mumbai has always cost skyrocketing prices. It is unaffordable to even the Middle Income Groups and certain sections of High Income Groups too. Affordable housing is important to the cities because it caters to the people who run the city, with their businesses and services.

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