Housing Becomes More Expensive, Mumbai Least Affordable, Says RBI

Housing Becomes More Expensive, Mumbai Least Affordable, Says RBI

The RBI report projected a worsening housing affordability going forward.

Housing affordability in the country has worsened over the past four years, according to a report by the Reserve Bank of India. The house price to income (HPTI) ratio – which indicates housing affordability – in 13 cities across the country increased from 56.1 in March 2015 to 61.5 in March 2019. Mumbai is the least affordable city, according to the RBI report. The house price to income ratio for Mumbai stood at 74.4 compared with 64.1 in March 2015. The overall increase for all 13 cities stood at 61.5 in March 2019, from 56.1 in March 2015, according to the report.

Among the four metro cities, Chennai and Delhi stood at the second and third positions in terms of least affordable cities Рwith HPTI ratios of 58.6 and 58.5 respectively Р while Kolkata emerged the most affordable city (HPTI ratio of 56.5).