Lecture on Housing Crisis and Solutions

Personal Background

• Grew up in over 10 cities due to father's army job.
• Experienced living in government quarters, unlike many Indians who face housing struggles.

India's Housing Crisis

• Rising Costs:
  • House prices in India's top 10 cities increased by 88% between 2019-2024.
  • Home ownership is becoming a luxury.
• Statistics:
  • 11 million vacant houses in cities, but 47.3 million families live in slums or tents.
  • Mumbai's price-to-income ratio: 14.3, New Delhi: 10.1.
  • Ideal EMI to income ratio < 50%; Mumbai is 116%, Delhi 82%.
• Lockdown Effects:
  • People left expensive rentals, hurting landlords' profits.
  • Post-lockdown, rents increased dramatically.

Digital Presence in Real Estate

• Importance of having a digital presence when renting or buying.
• Tools like Odoo can help create a personal website quickly and affordably.

Factors Driving Housing Crisis

• FSI (Floor Space Index):
  • Low FSI in Mumbai (1.3) limits housing supply, inflates land prices.
  • Controlled by powerful landowners and politicians.
• Rentier Capitalism:
  • Wealth from asset control rather than productive activities.
  • High demand for housing but limited supply due to investment strategies.

Black Money and Real Estate

• 77% of Indian household wealth is in real estate.
• Black money inflates property prices; properties often left vacant.

Lessons from Global Examples

• Singapore:
  • HDB provides subsidized housing; 80% live in HDB flats.
• Vietnam:
  • Social housing program ensures stable rent prices.
• Tokyo:
  • High FSI and minimal zoning laws allow high-density housing.

Proposed Solutions

• Increase FSI:
  • Raise by 50% to reduce costs.
• Vacancy Taxes:
  • Tax on empty properties to encourage renting/selling.
• Community Land Trusts:
  • Co-ops or government ownership to prevent speculation.
• Regulated Organizations:
  • Limit profit associations to stabilize market, as seen in Vienna.

Conclusion

• Housing must be treated as vital infrastructure.
• Efforts should be directed towards addressing land ownership and speculation to ensure affordable housing for all.