Daily Editorial Analysis

Editorial Analysis based on “The poll promise of affordable housing” which was published in The Hindu.

Introduction:

Among the various issues faced by the nation, one which political parties often promise to correct is the issue of housing.

Issues of housing in India

Homelessness and Quality concerns:

• India has around 1.7 million homeless people, according to the 2011 Census. Even for people with houses, the quality of build, congestion, and inadequate amenities and infrastructure remain major concerns.

Housing requirements:

• According to a Government of India report in 2012, an estimated 18.78 million more houses were required to meet the housing demand in the country.

Urban housing shortages:

• A study by the Indian Council for Research on International Economic Relations (ICRIER) in 2020 found that India’s urban housing shortage rose by 54% from 2012 to become 29 million in 2018.

Vacant Urban houses:

• The 2011 Census data analysis by the Centre for Social and Economic Progress revealed a shortfall of 19 million urban housing units alongside 11 million vacant units, highlighting a situation where available housing options do not adequately serve the most in need.

Issue of definition or Affordable houses:

• Affordable housing properties are those with an area not more than 60 sq.m, with the price capped at ₹45 lakh. This definition, however, does not apply to all regions; for example, metropolitan cities like Mumbai see higher prices per sq m. There is also a difference between housing demands in cities and those in rural areas 

Low share of affordable housing in sales:

• In the first quarter of 2024, housing sales were at an all-time quarterly high, with 1.30 lakh units sold across the top seven cities against approximately 1.14 lakh units at the same time last year.
• The Mumbai Metropolitan Region and Pune accounted for 51% of total sales.
• But in the new housing supply, it was mid-segment homes that continued to dominate with a 33% share. Affordable housing was at a mere 18% share. Luxury homes had a higher share at 25%.
• The share of affordable housing in overall sales during the first half of 2023 declined sharply, to approximately 20% — an 11% decrease as compared to the first half of 2022. For the top seven cities in the country, the share of affordable housing in the total supply reduced to 18% in the first quarter of 2023, from 23% in the first half of 2022.

Reason for declining trend of affordable housing demand: ● Given the high cost of land and construction materials, “building low-cost houses for low-income people is not economically viable. The low-income class cannot afford the house unless the charges are subsidised.

Issue of Slum population in India:

• The last Census in 2011 found that over 65 million people, about 5% of India’s total population, lived in slums, accounting for 17% of the Indian urban population. Cities like Greater Visakhapatnam, Jabalpur, Greater Mumbai, Vijayawada, and Meerut recorded huge slum populations of over 40%.

Importance of housing

• A right to housing has been held to be a part of the fundamental right to life under Article 21 of the Constitution by the Supreme Court.
• Housing is also important for the Indian economy with real estate sector responsible for about 50% of the economic output in the country.
• The Ministry of Statistics notes that more than one-third of all gross fixed capital formation in 2021-22 could be attributed to housing and building construction.

Evolution of Policy measures

• The first policy intervention from the Government came in 1985, with the Indira Awaas Yojana, which was focused on rural housing.
• After 2004, urban housing came into focus and the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched in 2005.
• In 2008, the Parekh Committee report on housing led to urban housing interventions such as the Rajiv Awas Yojana and Rajiv Rinn Yojna.
• The Housing for All schemes (2015-22) were launched in 2015. The two wings under these are Pradhan Mantri Awas Yojana (Gramin) and Pradhan Mantri Awas Yojana (Urban).
• The Pradhan Mantri Awas Yojana (Urban) was launched in June 2015 to address urban homelessness.
  • PMAY-U promised houses for 1.18 crore families by December 2024.
  • However, as of March 2024, only around 67% of its target of around 80 lakh were achieved.
• Pradhan Mantri Awas Yojana (Gramin) was launched in 2016 with the aim of constructing 2.95 crore houses.
  • It offers ₹1.3 lakh for each unit constructed under the scheme, with a 60:40 funding split between the Centre and State.
  • As of April 30, 2024, a total of 2.6 crore houses have been completed.

Ways ahead:

• Supporting People for Affordable Homes: Give subsidies, funds for basic infrastructure, and amenities near affordable housing projects.
• Improve Renting Options: Develop a better rental market, especially for affordable housing, to strengthen this sector.
• Support Renting with Vouchers: Expand the rental voucher scheme to assist urban poor and migrants in affording suitable rentals.
• Speed Up Approvals: Regulatory authorities should quickly approve affordable housing projects to boost growth.
• Focus on Urban Housing: Shift some resources from rural to urban housing to support city workers, improve mobility, and boost productivity.

Must read:

https://www.iasgyan.in/daily-current-affairs/pm-awas-yojana-44

https://www.iasgyan.in/daily-current-affairs/pmay-u-scheme