Delivering on the promise of ‘Housing for All’: The role of the rental housing market

A home is like a security blanket. In our busy daily lives, it is the one space that wraps us up in a sense of safety, comfort and warmth — a place to unwind and relax at the end of a long workday, a refuge from the world outside. Visuals of Aisha Banerjee, the female protagonist from Wake Up Sid (2009)[1] come to mind. Her entire journey is the quintessential story of a young woman, new to the workforce, who moves to the big city. Especially her struggles with finding housing in Mumbai resonated with people, be it with the rat-infested youth hostel she initially stayed in or with the dilapidated apartment she finds and transforms with the help of her friends. It truly is the tale of every freshly minted Mumbaikar.

Fig. 1–2: Transformation of Aisha’s Apartment in Wake Up Sid, directed by Ayan Mukherji,2009Source: Dharma Productions

However, the quest to find housing doesn’t always have a happy ending, especially for the urban poor who lack the resources to transform even dilapidated housing into liveable spaces. Instead, they are forced to accept poor quality housing arrangements — an estimated 26–37 million households[2] live in informal housing, which often lack basic services.  Further, as of 2011, close to a million people remained homeless in India’s urban centres.[3] At the same time, around 11 million housing units are said to be vacant.[4] Despite the spotlight on achieving “housing for all” — be it through national policies like the Pradhan Mantri Awas Yojana or international efforts like Target 11.1 of the UN Sustainable Development Goals — the base-level dream of “roti, kapda aur makaan” still remains out of reach for millions in the country. In other words, housing might be seen as a human right on paper, but it is not one that is equally available or accessible to all.

Rental housing is a hugely important component of the housing market which holds immense potential in the march towards housing security for all. It provides much needed affordability, mobility and flexibility to those who are unable to or do not wish to own housing. This is especially relevant in India’s urban centres which are home to a highly transient population. This population is characterised by a willingness to constantly move within and between cities, whether for studies or for work and is largely composed of youth (under 35 years of age). A highly mobile population, largely engaged in a growing gig economy, the youth prioritise job mobility and location flexibility over home ownership. Yet, government policy continues to be focussed on ownership and the rental sector remains largely underrepresented.

Fig. 3: Youth Migration in Indian Cities (based on data from Census 2011)

Despite demand often outweighing supply, there is simply not enough institutional support for the maintenance of the existing rental stock or development of new built-to-rent housing. Government-driven projects are scarce and private developers are not attracted to the development of rental units due to the lack of any incentives and seemingly endless red-tapism. Further, tenants often have to make the difficult choice between being able to stay close to their place of work and living far away due to the lack of good-quality, affordable housing options across the city. This has considerably increased commute times, thus increasing stresses on urban systems. Such factors have contributed to the creation of a highly restrictive, unaffordable and inequitable rental market.

Within this context, we, at Plural (a Mumbai-based urban think-tank), are conducting vital research on rental housing in the city, in collaboration with a diverse range of strategic stakeholders. Through our work, we have identified gaps within the existing mechanisms of housing policy, institutions, market and financing, and are now focussed on developing implementable solutions that address all income brackets. 

We believe that the time is ripe for an integrated rental product that has the correct mix of policies, finance and housing type that meets the new age criteria. After all, we’re all just a bunch of Aisha Banerjees, waiting to fall in love with a house and turn it into our own cozy little haven — complete with a yellow wall, a reading corner and some fairy lights. But for us all to have a similar story arc, the framework for a more dynamic, flexible and affordable rental housing market is urgently required.

References

[1] Wake Up Sid. Directed by Ayan Mukherji, Dharma Productions, 2009 .

[2] Dasgupta, KumKum. “India Needs to Rethink Housing for the Poor: Opinion.” Hindustan Times, 12 July 2020, www.hindustantimes.com/analysis/india-needs-to-rethink-housing-for-the-poor/story-mQBSGgAbpxy1pHdkZUu1PN.html

[3] Housing and Land Rights Network (HLRN). “Homelessness.” HLRN, HLRN, www.hlrn.org.in/homelessness. Accessed 19 Dec. 2024 . 

[4] Knight Frank. “Institutionalising the Rental Housing Market in India – 2019.” Knight Frank, Knight Frank (India) Pvt. Ltd. & Khaitan & Co., 2019, content.knightfrank.com/research/1004/documents/en/india-topical-reports-institutionalising-the-rental-housing-market-in-india-2019-6718.pdf .