Dream home slipping away? Affordable housing in India’s top cities drops sharply, claims UN report

India has launched some of the world’s largest government-backed housing programmes, but a growing shortage of affordable housing, especially in major cities, is making home ownership increasingly difficult for millions.The findings come from the UN-Habitat’s World Cities Report, 2026, titled The Global Housing Crisis: Pathways to Action. It examines housing challenges across the world, including affordability, informal settlements, displacement, climate change and housing finance.

Decline in affordable homes

According to the report, India’s biggest concern is the sharp decline in affordable housing observed in major cities.In the country’s eight largest cities, affordable housing, which accounted for nearly 52 % of new housing supply in 2018, had fallen to just 17 % by 2025.The report also notes that the supply of affordable homes has failed to keep pace with demand. The supply-to-demand ratio across the eight cities declined from 1.05 in 2019 to just 0.36 in 2025, pointing to a widening shortage.Housing is increasingly becoming expensive in India’s largest cities. Mumbai has a price-to-income ratio of 14.3, meaning a typical household would need more than 14 years of income to buy a home. Delhi follows with a ratio of 10.1, while even relatively affordable cities such as Ahmedabad and Chennai have ratios of 5.1.

Analysis of Indian housing schemes

The report identifies the Pradhan Mantri Awas Yojana-Urban (PMAY-U) as India’s flagship affordable housing programme. It notes that around 11.8 million houses had been approved under the scheme by 2024, making it one of the world’s largest government-backed housing initiatives.It praises the affordable housing public-private partnership model in Bhubaneswar, which combines government land with private investment to deliver lower-cost homes. More than 5,000 housing units are under development across Bhubaneswar, Cuttack and Rourkela under the initiative.The report also showcases Pune’s Yerwada slum redevelopment project, where homes were upgraded without relocating residents. It says the project protected livelihoods, encouraged community participation and involved women in planning and construction, making it a model for inclusive urban redevelopment.

Climate pressure and global challenge

The report also links India’s housing challenge to climate change. It says India has recorded one of the largest increases in greenhouse gas emissions from buildings in recent years, while rising temperatures are driving greater demand for cooling, increasing both electricity consumption and emissions.According to the report, up to 3.4 billion people globally lack access to adequate housing and calls for governments to treat housing as both a basic human right and a key part of sustainable urban development.