3BHK Affordability Crisis: Housing Prices Outpace Income Growth in Mega Markets

• Affordability of 3BHK homes is declining across India's major metropolitan markets, making them increasingly exclusive to the wealthy and investors.
• A Square Yards study reveals the average 3BHK in top five metros costs ₹2.7 crore, requiring nearly 12 years of income for a buyer earning ₹23 lakh annually.
• Even households in India's top 1% income bracket face similar affordability challenges, indicating a broader issue beyond middle-income buyers.
• Despite strong demand for larger homes, only 11% of new residential supply is income-aligned, with 48% of 3BHK units in stressed affordability categories.
• Developer economics favor high-ticket projects due to higher profit margins (45-50% vs. 15-18% for affordable homes), skewing supply towards premium segments.

Why It Matters: 3BHK homes are becoming unaffordable for most, as prices surge and developer focus shifts to premium segments.