Mumbai's Middle Class Faces 109-Year Wait for Homeownership: The Housing Crisis Unveiled
A startup founder exposes the grim reality of Mumbai's housing market, revealing that middle-class families need over a century to save for a home. The crisis extends to other major cities, with Gurugram, Kolkata, and Bengaluru also facing severe affordability issues.
MumbaiHousing CrisisMiddle ClassAffordabilityReal EstateReal Estate NewsJun 30, 2025
Startup founder Chandralekha MR clarified a viral misinterpretation of a National Housing Board (NHB) report on LinkedIn, emphasizing that it is the middle class, not the ultra-rich, who face a 109-year timeline to homeownership in Mumbai.
“Mumbai's RICH need 109 years to afford a house = FALSE,” she wrote. “Mumbai's MIDDLE-CLASS need 109 years to afford a house = TRUE.”
Chandralekha's analysis breaks down the staggering figures: with an annual income of ₹10.7 lakh and yearly savings of just ₹3.2 lakh, a household would need over a century to purchase a ₹3.54 crore home.
The crisis is not confined to Mumbai. Gurugram residents face a 64-year wait, Kolkata residents a 39-year wait, and even Bengaluru, once considered affordable, now requires 36 years of savings for homeownership.
For the 82% of Indian taxpayers earning under ₹10 lakh annually, owning a home in any major city remains a distant dream unless they have inherited wealth, dual incomes, or are willing to take on significant long-term debt.
India’s housing loan book reflects this desperation, growing to ₹33.53 trillion in 2024, a 14% increase from the previous year. Loans are becoming larger, tenures are extending, and financial stress is deepening.
The underlying issue, according to experts, is structural. Saurabh Mukherjea of Marcellus Investment Managers recently declared the “salaryman” era dead. “If you're still chasing promotions and pay raises, you're next,” he warned, arguing that middle-class Indians can no longer rely on stable jobs or predictable income.
Instead, they must market their skills like entrepreneurs, even as automation and AI encroach on white-collar jobs in sectors such as IT, finance, and media.
Real incomes have stagnated for a decade, while inflation and debt continue to rise. Household savings are at a 50-year low. Young professionals are faced with a grim choice: pursue growth in cities they can't afford or abandon the dream of homeownership altogether.
As Chandralekha concluded, “Families are sacrificing retirement, education, and well-being just to chase a roof over their heads.”
Frequently Asked Questions
What does the 109-year wait for homeownership in Mumbai mean for middle-class families?
It means that a middle-class household in Mumbai would need over a century to save enough to buy a ₹3.54 crore home, given their annual income of ₹10.7 lakh and yearly savings of ₹3.2 lakh.
How does the housing crisis extend beyond Mumbai to other major cities in India?
The crisis affects other major cities like Gurugram, Kolkata, and Bengaluru, with residents facing 64 years, 39 years, and 36 years of savings, respectively, to afford a home.
What is the current state of India’s housing loan book and what does it indicate?
India’s housing loan book has grown to ₹33.53 trillion in 2024, a 14% increase from the previous year. This indicates a growing financial stress among middle-class families who are taking on larger loans with longer tenures.
What structural changes are experts suggesting to address the housing crisis?
Experts suggest that middle-class Indians must market their skills like entrepreneurs and adapt to the changing job market, as the era of stable jobs and predictable income is over.
How are real incomes and household savings affecting the ability to own a home?
Real incomes have stagnated for a decade, while inflation and debt have risen. Household savings are at a 50-year low, making it increasingly difficult for young professionals to afford homes in major cities.
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