Affordable Housing: Its Impact, Challenges, and Solutions

Affordable Housing: Its Impact, Challenges, and Solutions

Affordable housings are a new rage. It is more of a necessity in today’s time in developing nation like India where people can’t seem to buy themselves a home pertaining to the skyrocketing prices of the properties and low-income brackets of working people. Affordable homes as the name implies are the houses which can be easily afforded by the lower and middle class of the country.

Infrastructure is one of the key factor which defines the development of any country and in such hour, affordable housing projects comes as a welcoming drift. The government of the country is working towards bridging the gap between the demand and the supply of these homes. Home loan facilities are also available to avail of affordable housing so that more and more people can benefit from it. And with urbanisation at its peak, there is more demand than supply for the same. And this demand will increase in the future. The government has taken several efforts to promote it, offering a credit-linked subsidy scheme and doing public-private partnerships to realise this long distant dream.

Affordable housing if done the right way can bring the country on the path of fast development. Construction of housing projects are great employment generators and the profit margin is high as well as compared to other employment sectors like banking, agriculture, trade, railways, communication etc.

Affordable housing is also attracting many investors and buyers thanks to the schemes and subsidies under the Pradhan Mantri Awas Yojna  (PMAY), availability of low-cost funding from banks and other lending institutions regulated by RBI. Easy housing loan and home loan in India can help in making ‘Housing for all’ a big success.


Every good thing comes with its set of challenges. And affordable housing is facing not one but several issues which are being resolved at a slow pace. What is required is that private developers come forward and join hands with the public developers so that these challenges can be addressed properly.

  • Lack of low-cost urban land: Urbanisation is the main reason behind this. Past few years have seen massive urbanisation with many people migrating from small towns and villages. Poor municipal regulation has made the situation worse. This is also the reason for a higher rate of land in urban areas. This is further affecting the transportation factors within the city. A large amount of land owned by the government in the name of army, electricity and railways which remain unavailable to be used for productive purposes and ultimately used by slum. It is time that government takes necessary action and induce proper land management of the urban areas.
  • Lack of knowledge about land ownership and involvement of too many mediators which acts as hurdles in bringing the genuine buyers
  • Lack of proper planning and designing of affordable housing projects.
  • High construction costs
  • Lack of maintenance mechanism
  • The poor team selection processing
  • Lack of participation from key developers

Read More: Types of Home Loans Offered by HDFC


Efforts to counter the dreaded social injustice in society is very important to make this affordable housing scheme a success. This will ensure that these homes are actually accessible to those for whom they are catered to and not the rich and wealthy who look for it as an investment or the middlemen who take it as an advantage to make money.  The goal should be to achieve sustainability in the process and the government is taking several steps to ensure it happens. Fast construction and timely delivery of affordable housing is the ultimate solution.


Affordable housing can make the future of the country bright by giving homes to the needy so that they can manage their expenses properly, lead a good lifestyle, give a home which they can call their own, give adequate environment to the children so that they can foster and flourish as a productive asset for the country. With low-income section getting a roof over their heads will make the society a better place, and also more resources which can be used for managing medical, transportation and food expenses. Thus, to make the society more urbanised and organised, affordable homes will play a significant role.

LoansJagat helps individuals in the low and mid-income group to get access to affordable houses by providing quick and simple access to home loans from the top lenders. One simply needs to mention their needs and choose the best home loan for their affordable housing dream.

Read More: How CIBIL Score Impacts Your Home Loan Eligibility?

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