Estimating Housing Affordability of Urban Poor in Maharashtra State

Abstract

Affordable housing normally covers both low cost market and subsidized housing that is available to people who cannot afford to rent or buy a house generally available in the open market. This study attempts to define, develop and administer the concept of Affordable Housing for poor and needy population in urban areas of Maharashtra. It is based on primary data collected from four towns (Malegaon, Nanded, Nagpur and Pune) covering 12000 households. Affordability has been calculated through present value of future net savings and the current disposable wealth, as reported by respondents of the survey. The projected profile of net savings over the remaining working life of the respondents duly adjusted for impairments in their repayment capacities on account of morbidity and mortality have been used for this purpose.