A deficiency or lack in the number of houses needed to accommodate the population of an area is called as Housing Shortage of that particular Area.
The new needs for housing units get generated by the rate of growth and the size of the future population as well as the rate of family household formation. Besides, that portion of housing stock which becomes deterioration and obsolete needs replacement over and above the needs arising out of the growth of population and households.
Housing shortage is a situation where the demand for housing exceeds the available supply. This can result in high housing costs, overcrowding, homelessness, and other social and economic problems.
Housing shortages can be caused by a range of factors, including population growth, migration, lack of new construction, low vacancy rates, and a lack of affordable housing options. Housing shortages can also be exacerbated by economic and social factors, such as income inequality and rising housing costs relative to income.
Housing shortages can have a number of negative impacts on individuals and communities, including increased homelessness, displacement of residents, reduced economic opportunities, and increased pressure on public services such as healthcare and education. Housing shortages can also lead to a decrease in quality of life, as residents may be forced to live in overcrowded or substandard conditions.
Governments, non-profit organizations, and private sector developers often work to address housing shortages by increasing the supply of affordable housing, providing subsidies and incentives for new construction, and implementing policies to protect tenants from displacement. Additionally, efforts to reduce income inequality and improve economic opportunities can also help to address housing shortages by increasing the ability of individuals and families to pay for housing.
Components of Housing Shortage :
Households residing in unacceptable conditions
Obsolescence Factor
- Non Serviceable Katcha (temporary) Houses
- All bad houses excluding those less than 40 years old
- 80 years old houses(Old structurally week)
Congestion Factor (Unacceptable as per social norms)
- Households with one or more married couples
- sharing room with a person aged 12 years or more
Houselessness
- Households living without any house(open, pavements)
Distribution of estimated urban housing shortage in India (million)
As of 2012, the estimated urban housing shortage in India is around 18.78 million units. However, the distribution of this shortage is not uniform across the country and varies widely across different states and regions.
According to a report by the Technical Group on Urban Housing Shortage, the highest urban housing shortage in India is in the state of Uttar Pradesh, which has an estimated shortage of around 3.65 million units, followed by Maharashtra with a shortage of 2.56 million units and West Bengal with a shortage of 1.83 million units.
Other states with significant urban housing shortages include Andhra Pradesh, Tamil Nadu, Karnataka, Bihar, and Rajasthan. On the other hand, states like Goa, Sikkim, and Manipur have relatively low urban housing shortages.
It is important to note that the estimates of urban housing shortage in India are subject to variation and may be impacted by a range of factors, including changes in population growth, urbanization trends, and government policies aimed at addressing the shortage.
Factors As at end-2012
Households living in non-serviceable katcha houses 0.99
Households living in obsolescent houses 2.27
Households living in congested houses 14.99
Households in homeless condition 0.53
Total Urban Housing shortage 18.78
I. Economically Weaker Sections (EWS) 10.55 (56%)
II. Low Income Group (LIG) 7.41 (40%)
III. Medium and High income group (MIG+HIG) 0.82 (4%)
Note: Values in parentheses are percentage shares.
Source: Report of Technical Group (TG-12) on Estimation of Urban Housing Shortage 2012, Ministry of Housing & Urban Poverty Alleviation.
Estimation of Housing Shortage
The methodology to find out housing shortage is illustrated in given table below. The data is to be taken from census for particular area. Quantitative housing shortage for a given period and for a particular area can be derived from census.
| No. | Component | Rural | Urban | Total |
| I | Number of Households | x1 | x2 | x1+y1=x3 |
| II | Number of Occupied Houses | y1 | y2 | y1+y2=y3 |
| III | Shortage( Over Crowding) | (x1-y1)=z1 | (x2-y2)=z2 | z1+z2=z3 |
| IV | Houseless Families ( estimated) | a1 | a2 | a1+a2=a3 |
| V | Total Quantitative Shortage | z1+a1=a4 | z2+a2=a5 | a4+a5=a6 |
Assessment of shortage of Housing both by Quantity and Quality
For calculating quantitative and qualitative housing shortage we need to classify, and to estimate the number of houses, which are below minimal , accepted standards.
| No. | Component | Rural | Urban | Total |
| I | Houseless families | a1 | a2 | a3 |
| II | Overcrowding Families | z1 | z2 | z3 |
| III | Houses below minimal Standards | c1 | c2 | c3 |
| IV | Total Shortage both Quantitative and Qualitative. | a1+z1+c1= α | a2+z2+c2=β | a3+z3+c3=γ |
The total shortage both quantitative and Qualitative is arrived by ‘α’ for rural ‘β’ for urban and ‘γ’ as total.
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