Global Housing Affordability Crisis: Where Does India Stand?

A growing housing crisis is quietly reshaping lives across the globe. A recent analysis shared by The Economist, based on data from Gallup, flips the usual narrative around expensive cities. Instead of focusing purely on property prices, the data looks at the percentage of people who reported financial difficulties related to housing in the past year. Here’s a closer look at how different countries rank when it comes to housing-related financial stress.

The Philippines ranks as the most affected country in the survey, with close to 60% of respondents reporting financial strain due to housing. This suggests that for a majority of people, managing rent, mortgages, or housing-related expenses has become a serious challenge, reflecting a widening gap between wages and living costs.

In Sri Lanka, the situation is nearly as intense, with well over half the population facing housing-related financial difficulties. The country’s recent economic struggles have likely amplified the pressure on households, making housing less affordable for many.

Thailand comes next, with around 40% of respondents reporting housing stress. While not as extreme as the top two, the numbers still indicate that a substantial portion of the population is grappling with rising housing costs in urban and semi-urban areas.

In India, roughly one in three people report financial difficulty related to housing. While this places India in the middle of the rankings, the sheer size of its population means that millions are affected, especially in rapidly growing cities where rents and property prices continue to rise.

South Korea shows a similar pattern to India, with about a third of respondents experiencing housing-related stress. High urban property prices, particularly in cities like Seoul, contribute to affordability challenges despite relatively higher incomes.

Both Indonesia and China fall slightly lower on the list but still report significant levels of housing difficulty. For many households, affordability remains a concern, especially in major cities where demand continues to outpace supply.

Despite its reputation for expensive real estate, the United States shows a much lower percentage (around 10%) of people reporting housing-related financial stress. This may reflect higher average incomes, access to credit, and support systems that help cushion the burden.

At the bottom of the list is the United Kingdom, where only a small share of respondents reported housing-related financial difficulties. While housing costs are high, fewer people report acute financial strain compared to Asian economies.