'30x your income for a 600 sqft flat in Mumbai': Reddit post ignites brutal takedown of India’s housing crisis

A 600-square-foot apartment in Mumbai costs 30 times the average annual income.

A line, posted on Reddit, has hit a raw nerve among home buyers. “We laugh nervously, comparing prices over chai,” the user wrote. “But the laughter dies when we glimpse the ledger of reality.” 

In a thread that felt part confessional, part obituary, users unpacked the quiet despair of an entire generation that’s been priced out of the Indian dream.

The data backs the sentiment. According to the National Housing Bank, housing affordability in India has hit a 15-year low. The national Price-to-Income (P2I) ratio stands at 11, meaning an average household would need 11 years of full income — or over 20 years of savings — to buy a modest home. That ratio now rivals New York City.

In Mumbai, the P2I ratio hits 14.3 — the worst in the country. Delhi sits at 10.1, while even so-called tech hubs like Bengaluru have breached affordability limits. Only Chennai, Ahmedabad, and Kolkata, with P2I ratios around 5.1, remain within the globally accepted benchmark of affordability.

Meanwhile, the EMI-to-income ratio for low-income households has surged from 43% in 2020 to 62% in 2024, exceeding the 50% limit set by India’s banking sector. For many, this means loans are no longer even an option.

Reddit users called it out for what it is: a system that favors wealth, not need. “30% of Indian real estate deals still involve unaccounted cash,” one user pointed out. “We don’t have a real estate market — we have a black money vault.”

The government’s own data confirms it. Affordable housing supply (units priced under ₹1 crore) has dropped by 36% in just two years — from over 3.1 lakh units in 2022 to under 2 lakh in 2024. Cities like Hyderabad, Mumbai, and NCR have seen steep declines, with supply shrinking by up to 69%. In contrast, luxury housing has surged by 48% nationwide — in some cities, it’s doubled.

The squeeze isn’t just structural — it’s strategic. Developers are focusing on high-margin luxury segments. Land is scarce. Construction costs are rising. And foreign investment is pouring into premium properties, pushing the middle class further out.

Even smaller units are seeing outsized inflation. In Mumbai, units under 30 sq. m have surged by 55% since 2019. Mid-sized homes (60–160 sq. m) have only seen a 29% rise in the same period.

A few Reddit users still defend ownership. “There’s something about living in a home you own — the permanence, the customisation, the depth of decision-making,” one wrote. “Even if it’s a terrible financial decision, it’s still home.”

But for most, the conclusion is clear: homeownership in India isn’t delayed — it’s denied.

The market projects some relief ahead: a possible 6.5% home price rise in 2025, slower than past years, and anticipated interest rate cuts could ease EMI burdens. But with 8 out of 12 experts predicting affordability will worsen for first-time buyers, hopes are fragile.

Reddit captured it best: “This isn’t a housing market. It’s a paradox — where homes are built, but not meant to be lived in.”