What is the housing price-to-income ratio in India?

The housing price-to-income ratio (PIR) measures home affordability by comparing the median price of a residential property to the median annual household income in a given market. A lower ratio indicates better affordability, while a higher ratio signals that homes are expensive relative to buyer incomes. In India, PIR varies widely across cities, with Mumbai being among the least affordable cities globally.

City-wise Price-to-Income Ratios (Approx. 2024)

• Mumbai: 25–30x (extremely unaffordable; among the highest in Asia).
• Delhi NCR: 12–18x (moderate to high).
• Bengaluru: 8–12x (more affordable given strong IT salaries).
• Chennai: 7–10x.
• Pune: 7–9x.
• Hyderabad: 7–10x.
• Tier-2 cities (Coimbatore, Jaipur, etc.): 4–7x (more accessible).

Global Benchmark

• A PIR of 3x or below is considered affordable (common benchmark used by UN and World Bank).
• PIR of 5–7x is 'seriously unaffordable'.
• Mumbai's PIR of 25–30x places it among the top 10 most unaffordable cities globally.
• India's overall urban PIR is approximately 8–10x, significantly above the affordability threshold.

India's housing price-to-income ratio reflects a deep affordability challenge, particularly in metros. Addressing it requires a multi-pronged approach expanding supply, controlling land costs, and enhancing income levels rather than just demand-side interventions.