Can Gen Z Afford Homes in Today's India?

Back in the day, our parents had it comparatively easier when it came to owning a home. Picture this: steady jobs, manageable expenses, and a real estate market that wasn't soaring at breakneck speeds. It was a time when the dream of owning a home was within reach for many.

Fast forward to present-day India, and the situation is starkly different, especially for Gen Z. Despite sharing the desire to own a property, they encounter significant hurdles. Research indicates that a significant 77% of Indian Gen Z individuals aspire to own a home. However, the harsh reality sets in when they realize the substantial gap between their incomes and the soaring housing prices.

Let's delve into the statistics. According to reports from the Times of India, millennials and Gen Z together account for more than half (53%) of the demand for home loans in the country. Nevertheless, many struggle to afford a home, despite their enthusiasm. The primary reason behind this struggle is the drastic increase in average home prices in major Indian cities over the past two years, exceeding 30%. In contrast, salaries have only seen a modest rise of approximately 10%. This disparity leads to financial strain, with the affordability gap widening continuously.

Adding to the challenge, the inflation rate surged to 7.8% in 2023, further diminishing the purchasing power of Gen Z's incomes. This poses a significant challenge, especially for those diligently saving every rupee to realize their dream of homeownership. Despite these obstacles, Gen Z in India remains resilient. An impressive 91% of them emphasize the importance of consistent saving to reach their objectives. This showcases their determination in the face of adversity.

It's crucial to recognize that purchasing a home is one of the most significant financial decisions in an individual's life. It's not merely about fulfilling a dream, it's about securing a future, building equity, and establishing stability.