Homeownership out of reach: Mumbai's top 5% need a century to afford house

Housing affordability is a major concern in India. In Mumbai, even the top 5% of earners would need over 100 years of saving to buy an average home.

Imagine working your entire life, saving every rupee you can and still not being able to buy a home. For even the richest 5% of urban families in Maharashtra, that's the grim reality when it comes to owning a house in Mumbai.

According to a recent analysis, using official data from the National Housing Bank (NHB), it has thrown light on how unaffordable homes have become in some of India's biggest cities. In Mumbai, for instance, even if a family is among the top 5% income earners, it would take over 100 years of disciplined saving to afford an average 1,184 sq ft home.

Mumbai: Where dreams meet a wall

The top 5% of urban families in Maharashtra earn around Rs 10.7 lakh annually. Assuming they save around 30%—a generous estimate—their savings would be about Rs 3.2 lakh a year. Now, the average cost of a modest home in Mumbai of 1,184 sq ft? A staggering Rs 3.5 crore.

Simple math: Rs 3.5 crore divided by Rs 3.2 lakh a year = 109 years of saving. And that's without spending a rupee on anything else—food, education, emergencies, or even rent.

Not just Mumbai

This is not just a Mumbai story. In Gurgaon, Haryana's most developed city, even the top 5% would need to save for over 60 years. In Bhubaneswar, Odisha's capital, it's 50+ years.

And it's not only metros. Of 21 Indian state capitals studied, 10 cities would require over 30 years of saving to buy a home of this size. A full career—and still not enough.

Where homeownership is still possible

There is some relief. In Chandigarh, a family in the top 5% can own a home after saving for 15 years. Jaipur is slightly behind, needing just under 20 years. But such cases are becoming increasingly rare.

The bigger picture

The data paints a stark picture of housing inequality and rising real estate prices far outpacing income growth. For millions of Indians, especially the middle class, homeownership—long considered a symbol of stability and success—is becoming a distant, perhaps unachievable dream.