The report, published on june 25, 2025, at 10:30 UTC, draws from National Housing Board (NHB) data, which compares average household incomes with the cost of housing across various state capitals and Union Territories (UTs). In Mumbai, an average household income stands at Rs 10.71 lakh per annum. With a saving rate of 30.2%, the top 5% of earners would need to set aside this portion of their income consistently over more than a century to afford a home. The average price for a house with a carpet area between 645 and 1,184 square feet is Rs 2.91 lakh per square foot as of march 2025, translating to a staggering Rs 3.2 lakh per annum for the average property. This exorbitant cost, coupled with Mumbai’s status as the state’s largest city, exacerbates the housing challenge.
The situation is particularly dire when compared to other major indian cities. In Gurugram, part of Haryana, the wealthiest 5% would need 64 years to buy a house, while in kolkata (West Bengal), the figure drops to 36 years. delhi and chandigarh fare relatively better, with timelines of 35 and 15 years, respectively. These disparities highlight Mumbai’s unique position as the least affordable housing market in the country, a trend that has been a topic of concern for policymakers and urban planners alike.
The NHB data further reveals that Maharashtra’s top 5% families could accumulate savings of around Rs 3.2 lakh annually, yet this amount falls woefully short of the Rs 2.91 lakh per square foot price tag. For a modest 1,184 square foot home, the total cost exceeds Rs 3.44 crore, a figure that remains out of reach even for the city’s richest residents when savings are stretched over decades. This situation is compounded by Mumbai’s status as a magnet for big-ticket industries and the most affordable capital when it comes to purchasing power, yet the housing market tells a different story.
Experts attribute this crisis to a combination of factors, including rapid urbanization, speculative investments, and a shortage of affordable housing units. The report suggests that the influx of wealth into real estate, often driven by black money or foreign investments, has inflated property prices beyond the reach of even upper-middle-class families. This has led to calls for government intervention, including stricter regulations on real estate pricing and increased development of affordable housing projects.
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