While affordable housing is an important part of addressing Mumbai’s growing population, it cannot be seen as a stand-alone solution. (Representative Image)
Mumbai, the financial capital of India, ranks among the most densely populated cities in the world. The city’s rapid urbanization and economic opportunities have attracted millions of people, resulting in a significant increase in demand for housing. With a population exceeding 12.44 million, about 30–32% of its residents live in slums, accounting for almost half of Maharashtra’s total slum population, which is about 11.8 million – the highest in India. This housing crisis has exacerbated socio-economic inequalities and the lack of affordable housing. This situation begs an important question: Can affordable housing effectively address the challenges of Mumbai’s growing population, or is a more comprehensive approach required?
Understanding affordable housing and Mumbai’s housing market landscape
The term “affordable” in the housing context differs significantly from other commodities. A housing unit is considered affordable when monthly rent or mortgage payments account for 30% to 40% of household income. In Mumbai, where the average household income is around INR 36,000 per month, this definition implies a house worth up to INR 4.5 million. Given the realities of the city’s housing market, achieving such affordability is increasingly elusive.
Over the years, Mumbai’s housing market has transformed from its colonial origins, in which chawls—multi-storey tenements initially designed for workers—into a landscape characterized by overcrowded lifestyles. As of 2022, the city had an unsold housing stock of 291,266 units in the Mumbai Metropolitan Region (MMR) and Greater Mumbai. Ironically, much of this stock consists of larger, more expensive apartments that remain unaffordable for the lower and middle income groups.
Government initiatives and their effectiveness
To tackle the housing crisis, the government has launched various schemes such as the Pradhan Mantri Awas Yojana (PMAY), which aims to provide housing for the urban poor by 2022. PMAY offers financial assistance up to INR 2.67 lakh for house construction. Similarly, Maharashtra Housing and Area Development Authority (MHADA) conducts lottery for allotment of subsidized housing. Despite these efforts, available affordable housing often does not meet the needs of those most in need, as it caters more to middle-income families than the poor.
For instance, MHADA’s 2018 offering of a 363 sq ft tenement in Lower Parel was priced at INR 14.2 million – beyond the reach of the average family. The affordability difference is stark; Only households with an income of at least INR 2.36 million will qualify for such units, leaving many still trapped in informal housing.
The need for a new approach
The oversupply of housing in Mumbai contrasts sharply with the acute shortage of affordable options. Slums account for 48% of the city’s housing stock, with another 17% comprising slum-like housing. Current initiatives fail to effectively target the lowest income bracket, leading to a continuous cycle of poverty and inadequate living conditions.
A redefined approach to affordable housing must take into account local market realities. Suggestions include lowering the monthly income affordability threshold and adapting to Mumbai’s unique economic context. Additionally, public land in prime areas should be used for affordable housing rather than commercial development, carefully considering the long-term implications for city revenues.
conclusion
While affordable housing is an important part of addressing Mumbai’s growing population, it cannot be seen as a stand-alone solution. The city needs an integrated approach that takes into account the socio-economic context, infrastructure capacities and community needs. By redefining affordability and implementing inclusive policies, Mumbai can pave the way towards a more sustainable and equitable housing landscape for all its residents.