The Reserve Bank of India (RBI) in its latest survey has found that housing affordability worsened over the past 4 years as the house price-to-income (HPTI) ratio increased from 56.1 in March 2015 to 61.5 in March 2019.
As per the survey report, Mumbai remains the least affordable city in India, while Bhubaneswar remains the most affordable city. RBI also pointed towards rising median loan-to-income (LTI) ratio which also confirms worsening housing affordability. LTI ratio increased from 3 in March 2015 to 3.4 in March 2019.
The Central Bank’s report also noted that the median loan-to-value (LTV) ratio moved from 67.7 per cent to 69.6 per cent between March 2015 and March 2019 showing that banks have become increasingly risk tolerant.