‘Your parents bought a house at 35 but you can’t’: Expert on middle class’ unrealised dream

Most of the Indian middle class dreams of owning a house but that dream – for many – is realised only when it is too late to fully enjoy. This is only going to get worse, warns an expert. Why, you ask? For the simple economic concept of asset price appreciation.

Long story short: Your salary is growing at a slower pace than the growth of asset price.

Akshat Shrivastava, founder of financial education platform Wisdom Hatch, took to social media to elucidate the point. “Your parents bought a house at 35 but you can't. This is despite the fact that your salary looks much higher,” he said giving an example of a salary of Rs 3,500 in 1990. This salary, compounding at 6 per cent, in line with inflation, is Rs 27,000 as of today. India’s median monthly salary in 2025 is about Rs 27,300-29,400 per month.

“While the salaries are compounding very slowly in India, the asset prices (eg. house, land, gold, stocks etc) have been growing at a much faster rate. This is asset price appreciation. Why can't the middle class buy a house? Because salary growth

In today’s financial ecosystem, debt is encouraged – people are borrowing money to buy things. He explained that most fintech startups are venturing into lending, which is a lucrative business.

“When people take more debt and trade an asset more, the price amplifies further. People who get this are amplifying their wealth. People who don't, keep questioning – why the prices of everything keep going up,” he said.

Meanwhile, India's residential real estate market recorded a strong 15 per cent total return over the past year – outperforming equity markets. This growth is largely driven by infrastructure improvements in major cities.

Data from the 1 Finance Housing Total Return Index (TRI) shows the index rising from 228 in September 2024 to 263 in September 2025. This represents one of the best annual performances in recent years.

The TRI is India's first independent benchmark based on actual transaction data from RERA-registered projects. It uses a weighted average model that considers per-square-foot rates, rental yields, and city-level population to provide a realistic view of housing returns in the country's top markets.