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HOUSING : A roof over ones head is always at the core of peoples
concern and will continue to be so till the Shelter for all is achieved in its
entirety. It is a fundamental need for all.

Vision 2021 of MPD is to neccessiate planning and action to meet challenge of
population growth and in migration into Delhi with a provision of adequate
housing the society. To accomodate an estimated population of NCTD of 230
lakh there has been a shift from plotted housing to group housing for optimal
utilization of land. The net increase in population is 50% by way of natural
growth and 50% by way of in migration. The Census figures clearly show more
increase in population of the elderly as compared to that of children.

MPD 2021 envisages on the goal of Shelter for all by creation of adequate
housing stock on either rental or ownership basis. Apart from providing shelter ,
housing acts as a major tool for influencing the efficiency and equity of urban

As per MPD 2021 , based on projected population of 230 lakhs by 2021 a
shortage of 24 lakh dwelling units is envisaged - 20 lakhs for the additional
population and a backlog of 4 lakh units. It is estimated that 40% of the 24 lakh
dwelling units can be satisfied through redevelopment and upgradation
schemes and the remaining 60% would be met through new housing units in
new areas..

DEFINITION OF AFFORDABLE HOUSES : Affordable housing is the pivot to
housing for all.It is generally defined as decent ,quality housing that costs no
more than 30% of a house holds gross monthly income for rent or for paying
towards housing loans .

Why are 3/2 bhk units popular :

. Demand and supply in the NCR was found to be the highest for 3BHK units
during Feb-Apr 2013. With more than 50 per cent demand, the category recorded
a rise of 2 per cent compared to the Nov 2012-Jan 2013 period, indicating the
growing preference for larger homes.

Supply was found to be maximum for 3BHK units with 55 per cent availability in
the market.
The second-most preferred configuration was 2BHK with more than 30 per cent
buyers showing interest in the same

INDUSTRY SPEAK There is very little difference between the cost of a 2 and
3BHK in Gurgaon. Hence, buying a 3BHK unit is always advisable. 3BHK units
are in demand as people want spacious homes and do not mind paying 10-20
per cent extra on housing loan that they would have paid for a 2BHK

New Gurgaon has developed as a high-growth area with a rising demand for
3BHK apartments. The main attributors to this demand are the working
professionals with high disposable incomes

Apartments with two bedrooms are ideal for nuclear families as it serves their
needs. On the other hand, 1-BHK flats are compact and smaller in size and are
preferred by individuals but this is not a popular buyer category. Similarly, 4-BHK
units are too large and not affordable for the middle class families.
Majority of these are within the budget range. A family size apartment will garner
a rent of Rs 10,000-15,000 per month. The takers are the professionals working
in Delhi and NCR

Students must go through MPD 2021 for byelaws , Development norms
and facilities to be provided in terms of Physical and Social infrastructure
and minimum sizes of rooms, kitchen and toilets.
NBC for fire safety norms regarding staircase , types of building etc.
IS 8888

Dwarka is considered a sub-city located in south west of National Capital
Territory of Delhi. The objective of DDA is to develop it as Urban
Expansion Project such that it develops into one of the largest residential
areas of Asia and decongests the residential needs of the growing
population of Delhi. The sub-city Dwarka is to be developed as a Model
Township with absolutely no flouting of norms laid out by DDA and
making one of the most organized and cleanest part of Delhi. With these
guidelines and some Building by laws (given below ) in Delhi the students
have to design a HOUSING NEIGHBOURHOOD .
The infrastructure designed should be organized and aesthetically planned.
With peaceful surroundings and great landscape. The Neighbourhood
should be self sufficient with all modern amenities like an :
Social Infrastructure
Multi purpose Hall -approx area 1500 sqm and an exclusive Cub
Facility with Yoga & Meditation centre,
Society office along with washroom
Senior citizens Room -120 sqm
Indoor games and library ,
Swimming Pool with kids pool , Gymnasium and shower facilities ,
Open badminton , Volley ball , basketball courts, Jogging track
,Special Children play pen ,
a small Healthcare facility ,
Commercial space for daily needs
Basti Vikas Kendra / Anganwadi
Guard Post 2 nos with a wash room attached
Religious site - left to discretion of the student

Physical infrastructure
.Sewerage Pumping Station
. Under ground tank
. Rain Harvesting
. Electric substation / Generator Area. Approx 20 sqm area

The guidelines for the proposed housing is as follows
PLOT AREA -10.66 ACRE approx. Actual site to be measured by
students and rounded of to the nearest decimal. Site plan enclosed
Maximum ground coverage - 33.33% or 40%
FAR : 200
Max. Height : no restriction /33 MTS
The net Housing Density shall be 175 DUs per hectare with 15%
variation on either side. (* Approx 450 units in 3 hectare at an area of
150 sqm per unit it works out .90000 sqm total built up area * as per
FAR of 200 it works out 60000 max. allowable )
For the purpose of density calculations the dwelling units shall be
considered to accommodate 4.5 persons and the servant quarter to
accommodate 2.25 persons.
It is optional for students for provision of a servants room in 3 bhk units
with a maximum size of 25 sqm
Approximate size of an 2bhk 100 -130 sqm carpet area
Approximate size of an 3bhk 140-160 sqm carpet area
The students can bifurcate as a mix of 50% 2 BHK UNITS and 50% 3 BHK

The guidelines for the proposed housing is as follows :
Floor Area Ratio = Total Plot Area x 200/100
Then , if Plot area = 5000 sqm
FAR= 10000 sqm i.e. allowable built up area should not exceed 10,000

An area upto 10% of permissible FAR can be utilized for commercial
Common Parking is to be provided. @ 2 ECS /100 sqm of floor area

Report on Housing. Types of Housing
Study of byelaws,
Literature Case study.of a unit and its functions with areas
Case study of an proposed / existing housing in Delhi. Based on similar
Case study of any housing with reference to building materials used and
building techniques.
Site analysis of the actual site given with reference to climate ,vegetation
, topography , approaches , location etc and SWOT analysis.
Development of concept- Single line with pencil and colour
Development of concept thermocoal model

1. Location plan
2. Site plan
3. Plan showing vehicular movement motorized and non motorized and
4. Ground floor Plan with entry points to blocks/units
5. All level plans
6. Roof plan with mumti and machine room
7. Landscape plan
8. Sections -4 nos
9. Elevation 4 nos
10. Detail unit plans of cluster
11. Area statement chart
12. Model

3BHK most popular category in Gurgaon

Gurgaon is one of the most sought-after real estate destination for both investment as-well-as end
usage. The National Capital Region (NCR) is largely known to offer comfortable and luxurious homes to a
large number of middle and high-income buyers. This is depicted in data. Demand and
supply in the NCR was found to be the highest for 3BHK units during Feb-Apr 2013. With more than 50
per cent demand, the category recorded a rise of 2 per cent compared to the Nov 2012-Jan 2013 period,
indicating the growing preference for larger homes.

Supply was found to be maximum for 3BHK units with 55 per cent availability in the market. An upward
trend in supply was recorded in the past six months with availability up by 1 per cent during the Feb-Apr
2013 period. Apart from high demand, the population density norms in Gurgaon also ensures that
developers go for larger units making 3BHK apartments the most supplied size.

The second-most preferred configuration was 2BHK with more than 30 per cent buyers showing interest
in the same. However, demand witnessed a drop of 3 per cent during the Feb-Apr 2013 period compared
to the Nov 2012-Jan 2013 period. The increasing need for larger homes may be the reason for the dip in
demand for smaller units. Supply for these units remained constant in the past six months. However, a
gap was noted between demand and supply of 2BHK units with supply falling short by 12 per cent during
the Feb-Apr 2013 period. An oversupply of larger units (4BHK and above) was registered during the Feb-
Apr 2013 period, a trend that was visible in the past three months as well. This reinforces developers'
inclination towards larger units.

Key take-aways from demand analysis: More than 50 per cent demand was noted for 3BHK units
during the Feb-Apr 2013 period. The demand increased by 2 per cent during this period compared to the
Nov 2012-Jan 2013 period.
lthy demand was recorded for 2BHK units with more than 30 per cent demand. However, demand
dropped by 3 per cent for these units during the Feb-Apr 2013 period compared to the Nov 2012-Jan
2013 period.
a Road and Dwarka Expressway registered the highest demand for both 2 and 3BHK units during the
Feb-Apr 2013 period.
rate demand was witnessed for 4BHK and above housing configurations while buyer interest remained
low for 1BHK units in the past six months.

Key take-aways from supply analysis:
In line with huge demand, supply remained highest for 3BHK units. The maximum availability for these
units was recorded in Sohna Road and Golf Course Extension Road.
second-most supplied category was 4BHK and above housing configurations. Nearly 25 per cent supply
was noted for the same. Golf Course Road recorded the highest supply of these homes while Sohna
Road followed a close second.
Supply of 2BHK units remained low compared to huge demand for the category. Sector 82 witnessed
maximum supply of these units during the Feb-Apr 2013 period.
ability of 1BHK units was found to be almost negligible during the Feb-Apr 2013 period.

INDUSTRY SPEAK There is very little difference between the cost of a 2 and 3BHK in Gurgaon. Hence,
buying a 3BHK unit is always advisable. 3BHK units are in demand as people want spacious homes and
do not mind paying 10-20 per cent extra on housing loan that they would have paid for a 2BHK. Manoj
Kumar VP, Marketing, M2K Developers

Over 75 per cent of people in the NCR travel to Gurgaon for work. This leads to consistent
demand, he says. But the peculiarity of the Gurgaon market is that the best selling
configuration is 3 BHK with 1650-1800 sq ft being the most popular unit sizes
3BHK apartments most popular configuration in New Gurgaon
Having sold 7 projects, he is encouraged by the fact that 74 per cent of his buyers are
salaried and about 60 per cent are below the age of 30. He finds 3 BHK units selling best in
the Gurgaon market and about 80 per cent of his units are of that configuration. With over
5,000 units in various stages of construction, Jain is sure that Gurgaon is where his groups
future lies. Proof of the same is the fact that the group has a holding of over 1500 acres of
land in Gurgao
New Gurgaon has developed as a high-growth area with a rising demand for 3BHK apartments. The main
attributors to this demand are the working professionals with high disposable incomes. Reputed
developers have launched many new projects in these areas, resulting in reduction in the demand and
supply gap of 3BHK apartments.
Owing to the growing preference for luxury apartments and larger living spcaes amongst residents of
Gurgaon, the supply for 3BHK units was found to be the maximum across different specifications in the
Apr-Jun quarter, according to Demand here has been adequately met with the supply
of the 3BHK apartments.
New Gurgaon including Sectors 24 to 57 witnessed 43 per cent demand for 3BHK apartments in the Apr-
Jun quarter, with supply at 48 per cent. Most projects here offer 3 and 4 BHK apartments with world-
class amenities and are launched at the starting rate of around Rs 65 lakh and can go up to Rs 3 crore.
"There is a wide demand of 3BHK apartments in these Sectors from both investors and end-users. Its
the transparency, infrastructure development and expectation of future returns which are driving even
NRI/HNI investor towards investing in Gurgaon," observes Sandeep Hatria of Gurgaon Housing.
Even in the Jan-Mar quarter, maximum demand has been for 3BHK apartments, at more than 50 per cent
across all areas in Gurgaon, data highlights. Some of the developers offering 3BHK
apartments in New Gurgaon and new developing sectors from 81 to 95 are DLF Ltd, Emaar MGF
Properties, IREO Group, BPTP Ltd, Vipul Group, Raheja Developers, Bestech Group, Unitech Ltd, CHD
Developers, Vatika Group, Orris Infrastructure, among others.
Shorya Agarwal of Remax Pro Vantage said,"Demand for 3BHK in townships is most in Gurgaon,
propelling developers here to cater to that segment. Realtors attribute this demand to high disposable
income of professionals in Gurgaon."
"Change in Gurgaon has come from the change in mindset. Buyers prefer projects that have facilities like
clubs, gym, restaurant and swimming pool over DDA flats or regular units, says Agarwal.

Housing in India varies greatly and reflects the socio-economic mix of its vast
population.Housing varies from palaces of erstwhile maharajas in Rajasthan to
modern apartment buildings in big cities to tiny huts in far-flung villages. There has
been tremendous growth in India's housing sector as incomes have risen.
There are certain unique characteristics of Indian culture which often influence how
Indian homes are organised. A common traditional structure is for the extended family
to live in the same house, forming what is known in India as a joint family For
instance grandparents, their sons, daughters-in-law and grandchildren live in the same
household sharing the same kitchen. Brothers, sisters and cousins grow up together.
Each husband-wife combination has their own bedroom. The eldest woman in the
house is generally incharge of cooking. In joint families, women live with their in-
laws after marriage.
With modernisation there is a growing number of nuclear families, in which each
couple occupies its own house after marriage, in urban areas. It is still rare, albeit not
impossible, amongst traditional communities for senior citizens to live alone. It is
extremely rare even in urban areas for couples to live together before marriage. Some
single young adults live in same-sex dormitories or in shared accommodation during
college and the early working years.
The life-style in villages takes advantage of the warm weather. Many families bathe
outdoors in rivers and ponds. Most of the day is spent outdoors around or near the
house. Cooking is conducted outdoors in earthen stoves powered by organic fuels or
in modern kerosene stoves. Water is obtained from hand-drawn wells. Men perform
their ablutions in designated spots throughout the day; Visitors to villages may find
residents squatting down for an afternoon card game under trees or while sitting on
charpois (traditional hand-made beds) brought outside during the day. Consequently
they use their indoor space primarily to sleep, change and, in electrified homes, to
watch TV
Affordable housing is housing deemed affordable to those with a median household income
rated by country, province (state), region or municipality by a recognizedHousing Affordability Index.
In Australia, the National Affordable Housing Summit Group developed their definition of affordable
housing as housing that is, "...reasonably adequate in standard and location for lower or middle
income households and does not cost so much that a household is unlikely to be able to meet other
basic needs on a sustainable basis."
In the United Kingdom affordable housing includes "social
rented and intermediate housing, provided to specified eligible households whose needs are not met
by the market."
Most of the literature on affordable housing refers to a number of forms that exist
along a continuum - from emergency shelters, to transitional housing, to non-market rental (also
known as social or subsidized housing), to formal and informal rental, indigenous housing and
ending with affordable home ownership.

The notion of housing affordability became widespread in the 1980s in Europe and North America. A
growing body of literature found it problematic.
Notably, the shift in UK housing
policy away from housing need to the more market-oriented analyses of affordability was challenged
by Whitehead (1991).
This article discusses the principles that lie behind the concepts of need
and affordability and the ways they have been defined.
This article focuses on the affordability of owner-occupied and private rental housing as social
housing is a specialised tenure.
Housing choice is a response to an extremely complex set of economic, social, and psychological
For example, some households may choose to spend more on housing because they
feel they can afford to, while others may not have a choice.
In the United States
a commonly accepted guideline for housing affordability is a housing cost that does not
exceed 30% of a household's gross income. When the monthly carrying costs of a home exceed 30
35% of household income, then the housing is considered unaffordable for that household.
Determining housing affordability is complex and the commonly used housing-expenditure-to-
income-ratio tool has been challenged. Canada, for example, switched to a 25% rule from a 20%
rule in the 1950s. In the 1980s this was replaced by a 30% rule.
India uses a 40% rule.
1 Measuring housing affordability
o 1.1 A perfectly balanced housing market
o 1.2 Housing expenditure to income ratio tool
o 1.3 Housing Affordability Index (HAI)
2 Household income and wealth
3 Housing expenditures
o 3.1 Causes and consequences of rise in house prices
3.1.1 Inequality and housing
o 3.2 Other housing expenditures
4 Growing density convergence and regional urbanization
5 Economy
o 5.1 Supply and demand
o 5.2 Some of the factors that affect the supply and demand of housing stock
o 5.3 Factors that affect tenure choices (ex. owner occupier, private rented, social rented)
6 Labour market performance
7 Social costs of lack of affordable housing
o 7.1 Jobs, transportation, and affordable housing
8 Affordable housing and public policy
o 8.1 Right to build
o 8.2 Government restrictions on affordable housing
9 Affordable housing by country
o 9.1 Australia
9.1.1 Western Australia Department of Housing Affordable Homes Scheme Shared Home Ownership Affordable House Sales
o 9.2 Canada
9.2.1 Ontario
9.2.2 British Columbia
o 9.3 China
o 9.4 India
o 9.5 United Kingdom
9.5.1 A tradition of social housing in the United Kingdom
9.5.2 Council houses
o 9.6 United States
9.6.1 New York City
9.6.2 Status quo
9.6.3 Inclusionary Zoning
9.6.4 Choice Neighborhoods Initiative
9.6.5 Housing Vouchers
9.6.6 USDA Home Loan
10 References
11 External links
o 11.1 Canada
o 11.2 United Kingdom
o 11.3 United States
Measuring housing affordability[edit]
A perfectly balanced housing market[edit]
"A common measure of community-wide affordability is the number of homes that a household with
a certain percentage of median income can afford. For example, in a perfectly balanced housing
market, the median household (and the half of the wealthier households) could officially afford the
median housing option, while those poorer than the median home could not afford the median home.
50% affordability for the median home indicates a balanced market."

A community might track the percentage of its housing that is affordable to households earning 60%
of median income.
The Median Multiple indicator, recommended by the World Bank and the United Nations, rates
affordability of housing by dividing the median house price by gross [before tax] annual median
household income). This indicator rates housing affordability on a scale of 0 to 5 with categories 3
and under being affordable. From 3 to 5 the categories are rated as moderate (3.1 to 4.0), serious
(4.1 to 5.0) and severe unaffordability (5.1 and over).]
Using this indicator, Demographia,
provides market-based annual housing affordability ratings.
Housing expenditure to income ratio tool[edit]
Determining housing affordability is complex and the commonly used housing-expenditure-to-income
ratio tool has been challenged. Canada, for example, switched to a 25% rule from a 20% rule in the
1950s. In the 1980s this was replaced by a 30% rule.

Housing Affordability Index (HAI)[edit]
One of its greatest strengths of the HAI developed by MIT is its ability to capture the Total Cost of
Ownership of individuals housing choices. In computing the index the obvious cost of rents and
mortgage payments are modified by the hidden costs of those choices.

Household income and wealth[edit]
Income is the primary factor not price and availability, that determines housing affordability.
In a
market economy the distribution of income is the key determinant of the quantity and quality of
housing obtained. Therefore, understanding affordable housing challenges requires understanding
trends and disparities in income and wealth. Housing is often the single biggest expenditure of low
and middle income families. For low and middle income families, their house is also the greatest
source of wealth.

The most common approach to measure the affordability of housing has been to consider the
percentage of income that a household spends on housing expenditures. Another method of
studying affordability looks at the regular hourly wage of full-time workers who are paid only the
minimum wage (as set by their local, regional, or national government). The hope is that full-time
workers will be able to afford at least a small apartment in the area where they work. Some countries
look at those living in relative poverty, which is usually defined as making less than 60% of
the median household income. In their policy reports, they consider the presence or absence of
housing for people making 60% of the median income.
Housing expenditures[edit]
Housing affordability can be measured by the changing relationships between house prices and
rents, and between house prices and incomes.
There has been an increase among policy makers
in affordable housing as the price of housing has increased dramatically creating a crisis in
affordable housing.

Since 2000 the "world experienced an unprecedented house price boom in terms of magnitude and
duration, but also of synchronisation across countries."
"Never before had house prices risen so
fast, for so long, in so many countries."
Prices doubled in many countries and nearly tripled in
The bursting of the biggest financial bubble in history in 2008 wreaked havoc globally on the housing
market. By 2011 home prices in Ireland had plunged by 45% from their peak in 2007. In the United
States prices fell by 34% while foreclosures increased exponentially. In Spain and Denmark home
prices dropped by 15%. However, in spite of the bust, home prices continue to be overvalued by
about 25% or more in Australia, Belgium, Canada, France, New Zealand, Britain, the Netherlands,
Spain and Sweden.

Causes and consequences of rise in house prices[edit]
Costs are being driven by a number of factors including:
demographics shifts
the declining number of people per dwelling
Growing Density Convergence, Regional Urbanization
solid population growth (for example sky-high prices in Australia and Canada as a rising
population pushes up demand).

supply and demand
a shortfall in the number of dwellings to the number of households
smaller family size
the strong psychological desire for home ownership,

shifts in economic policies and innovations in financial instruments
reduced profitability of other forms of investment
availability of housing finance

low interest rates

mortgage market innovations

public policy
land use zoning
Inequality and housing[edit]
A number of researchers (David Rodda,
Jacob Vigdor,
Janna Matlack, and Jacob Vigdor),
argue that a shortage of affordable housing at least in the US is caused in part by income
David Rodda
noted that from 1984 and 1991, the number of quality rental units
decreased as the demand for higher quality housing increased (Rhoda
Through gentrification of older neighbourhoods, for example, in East New York, rental
prices increased rapidly as landlords found new residents willing to pay higher market rate for
housing and left lower income families without rental units. The ad valorem property tax policy
combined with rising prices made it difficult or impossible for low income residents to keep pace.

Other housing expenditures[edit]
In measuring affordability of housing there are various expenditures beyond the price of the actual
housing stock itself, that are considered depending on the index being used.
Some organizations and agencies consider the cost of purchasing a single-family home; others look
exclusively at the cost of renting an apartment.
Many U.S. studies, for example, focus primarily on the median cost of renting a two-bedroom
apartment in a large apartment complex for a new tenant. These studies often lump together luxury
apartments and slums, as well as desirable and undesirable neighborhoods. While this practice is
known to distort the true costs, it is difficult to provide accurate information for the wide variety of
situations without the report being unwieldy.
Normally, only legal, permitted, separate housing is considered when calculating the cost of housing.
The low rent costs for a room in a single family home, or an illegal garageconversion, or a college
dormitory are generally excluded from the calculation, no matter how many people in an area live in
such situations. Because of this study methodology, median housing costs tend to be slightly
Costs are generally considered on a cash (not accrual) basis. Thus a person making the last
payment on a large home mortgage might live in officially unaffordable housing one month, and very
affordable housing the following month, when the mortgage is paid off. This distortion can be
significant in areas where real estate costs are high, even if incomes are similarly high, because a
high income allows a higher proportion of the income to be dedicated towards buying an expensive
home without endangering the household's ability to buy food or other basic necessities.
Growing density convergence and regional
The majority of the more than seven billion people on earth now live in cities (UN). There are more
than 500 city regions of more than one million inhabitants in the world. Cities become megacities
become megalopolitan city regions and even "galaxies" of more than 60 million inhabitants. The
Yangtze Delta-Greater Shanghai region now surpasses 80 million. Tokyo-Yokohoma adjacent to
Osaka-Kobe-Kyoto have a combined population of 100 million. Rapid population growth leads to
increased need for affordable housing in most cities.
The availability of affordable housing in proximity of mass transit and linked to job distribution, has
become severely imbalanced in this period of rapid regional urbanization and growing density
"In addition to the distress it causes families who cannot find a place to live, lack of affordable
housing is considered by many urban planners to have negative effects on a community's overall

Affordable housing challenges in inner cities range from the homeless who are forced to live on the
street, to the relative deprivation of vital workers like police officers, firefighters, teachers and nurses
unable to find affordable accommodation near their place of work. These workers are forced to live
in suburbia commuting up to two hours each way to work.
Lack of affordable housing can make
low-cost labour scarcer (as workers travel longer distances) (Pollard and Stanley 2007).

Lack of affordable housing places a particular burden on local economies.
As well, individual consumers are faced with mortgage arrears and excessive debt and therefore cut
back on consumption. A combination of high housing costs and high debt levels contributes to a
reduction in savings.
These factors can lead to decreased investment in sectors that are essential to the long-term growth
of the economy.
Supply and demand[edit]
The market has been unable to meet the growing demand to supply housing stock at affordable
prices. Although demand for affordable housing, particularly rental housing that is affordable for low
and middle income earners, has increased, the supply has not.
Potential home buyers are
forced to turn to the rental market, which is also under pressure.
An inadequate supply of housing
stock increases demand on the private and social rented sector, and in worse case scenarios,

Some of the factors that affect the supply and demand of housing
Demographic and behavioural factors
Migration (to cities and potential employment)
Increased life expectancy
Building codes

A greater propensity for people to live alone
Young adults delaying forming their own household (in advanced economies).
Factors that affect tenure choices (ex. owner occupier, private rented,
social rented)[edit]
Employment rates
Rising unemployment rates increase demand for market rentals, social housing and
Real household incomes
Household incomes have not kept up with rising housing prices
Affordability of rents and owner occupation
Interest rates
Availability of mortgages
Levels of confidence in the economy and housing market
Low confidence decreases demand for owner occupation

Labour market performance[edit]
In both large metropolitan areas and regional towns where housing prices are high, a lack of
affordable housing places local firms at a competitive disadvantage. They are placed under wage
pressures as they attempt to decrease the income/housing price gap. Key workers have fewer
housing choices if prices rise to non-affordable levels. Variations in affordability of housing between
areas may create labour market impediments.
Potential workers are discouraged from moving to employment in areas of low affordability. They are
also discouraged from migrating to areas of high affordability as the low house prices and rents
indicate low capital gain potential and poor employment prospects.

Social costs of lack of affordable housing[edit]
Housing affordability is more than just a personal trouble experienced by individual households who
cannot easily find a place to live. Lack of affordable housing is considered by many urban
planners to have negative effects on a community's overall health.

Jobs, transportation, and affordable housing[edit]
Lack of affordable housing can make low-cost labor more scarce, and increase demands on
transportation systems (as workers travel longer distances between jobs and affordable housing).
Housing cost increases in U.S. cities
have been linked to declines in enrollment at local

"Faced with few affordable options, many people attempt to find less expensive housing by buying or
renting farther out, but long commutes often result in higher transportation costs that erase any
savings on shelter." Pollard (2010) called this the "drive 'til you qualify" approach, which causes far-
flung development and forces people to drive longer distances to get to work, to get groceries, to
take children to school, or to engage in other activities.
A well located dwelling might save
significant household travel costs and therefore improve overall family economics, even if the rent is
higher than a dwelling in a poorer location.
A household's inhabitants must decide whether to pay
more for housing to keep commuting time and expense low, or to accept a long or expensive
commute to obtain "better" housing. The absolute availability of housing is not generally considered
in the calculation of affordable housing. In a depressed or sparsely settled rural area, for example,
the predicted price of the canonical median two-bedroom apartment may be quite easily affordable
even to a minimum-wage worker if only any apartments had ever been built. Some affordable
housing prototypes include Nano Houseand Affordable Green Tiny House Project.
Affordable housing and public policy[edit]
Policy makers at all levels - global, national, regional, municipal, community associations - are
attempting to respond to the issue of affordable housing, a highly complex crisis of global
proportions, with a myriad of policy instruments. These responses range from stop-gap financing
tools to long-term intergovernmental
infrastructural changes.
In the simplest of terms, affordability of housing refers to the amount of capital one has available in
relation to the price of the goods to be obtained. Public policies are informed by underlying
assumptions about the nature of housing itself. Is housing a basic need, a right,
an entitlement,
a public good, or even, as in the case of home purchasing in the United States, a civic duty? Or is
just another household-level consumer choice, a commodity or an investment within the free market
system? "Housing Policies provide a remarkable litmus test for the values of politicians at every level
of office and of the varied communities that influence them. Often this test measures simply the
warmth or coldness of heart of the more affluent and secure towards families of a lower socio-
economic status (Bacher 1993:16)."

Affordable housing needs can be addressed through public policy instruments that focus on the
demand side of the market, programs that help households reach financial benchmarks that make
housing affordable. This can include approaches that simply promote economic growth in general
in the hope that a stronger economy, higher employment rates, and higher wages will increase the
ability of households to acquire housing at market prices. Federal government policies define
banking and mortgage lending practices, tax and regulatory measures affecting building materials,
professional practices (ex. real estate transactions).
The purchasing power of individual
households can be enhanced through tax and fiscal policies that result in reducing the cost of
mortgages and the cost of borrowing. Public policies may include the implementation of subsidy
programs and incentive patterns for average households.
For the most vulnerable groups, such as
seniors, single-parent families, the disabled, etc. some form of publicly funded allowance strategy
can be implemented providing individual households with adequate income to afford housing.
Policy instruments may focus on production strategies That facilitate increased production on the
supply side of affordable housing, which can include refurbished older stock or new housing
construction. China's housing policy during the period of central planning prior to the reform,
included constructing and allocating virtually free and unsustainable publicly funded housing.

Currently, policies that facilitate production on the supply side include favorable land use policies
such as inclusionary zoning, relaxation of environmental regulations, and the enforcement of
affordable housing quotas in new developments.
In some countries, such as Canada, municipal governments began to play a greater role in
developing and implementing policies regarding form and density of municipal housing in residential
districts, as early as the 1950s.
At the municipal level recently promoted policy tools include
relaxation of prohibitions against accessory dwelling units, and reduction of the amount
of parking that must be built for a new structure.
Affordable housing is a controversial reality of contemporary life, for gains in affordability often result
from expanding land available for housing or increasing the density of housing units in a given area.
Ensuring a steady supply of affordable housing means ensuring that communities weigh real and
perceived livability impacts against the sheer necessity of affordability. The process of weighing the
impacts of locating affordable housing is quite contentious, and is laden with race and class
implications. Recent research, however, suggests that proximity to low-income housing
developments generally has a positive impact on neighborhood property conditions.

The growing gap between rich and poor since the 1980s manifests itself in a housing system where
public policy decisions privilege the ownership sector to the disadvantage of the rental sector.

ffordable Housing drives demand in Bangalore city. Today, the affordable segment emerged
as the most vibrant and active sector in Indian Realty. Various factors have contributed for
this growth, such as the availability of financing options, rapid urbanization, supply side, it
is the entry level of various real estate developers, financial options, growing trend of
nuclear families and the rising income level has increased the demand of Affordable housing
in Bangalore.
According to the Indian Affordable Housing market Analysis report, the demand for
Affordable Housing is growing everywhere in Bangalore and we can see the constant
demand on the outskirts. The majority of the demand mostly comes from low income group
and price sensitive buyers. The planned metro rail and peripheral ring road is also another
reason for increased demand on the outskirts. Therefore many affordable projects are
developed in the suburbs of Bangalore and these areas offer large land parcels at lower
acquision costs. The areas which have witnessed the highest demand are Hosur road,
Mysore Road and kanakapura road etc