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Indian population has not been so fortunate in having a decent house with all necessary amenities. The problems of housing emerged when not all, but most of these features are missing in a house. Many houses in India lack a dignified living in (i) not having a demarcation from the main roads barring their privacy, (ii) lack of covered washrooms and toilets, (iii) lack of privacy due to poor construction or thick density in families, (iv) lack of separate kitchens – polluting the air to breathe in causing irreparable damage to the health, (v) lack of security against natural disasters especially earthquakes and the like due to which many houses are often reported to be ruined, and (vi) lack of many other amenities needed for good survival.

Many of these problems are well reflected in data compiled by census 2011. Out of the total, 92.5 percent of the houses in India have occupied census houses, where 93.8 percent in rural areas and 89.9 percent in urban areas. On the other hand, 7.5 percent of the total census houses in India are vacant, and that is 6.2 percent in rural areas and 10.1 percent in urban areas. Only 53.2 percent of houses of the total number of census houses are in good condition, whereas 41.5 percent are in liveable conditions followed by 5.3 percent in dilated condition. An additional worry is that the good condition houses are more in numbers in urban areas and lesser in rural areas. However, ownership of houses is better in rural areas, wherein 94.7 percent of the total owned houses in India are in rural areas and 69.2 percent in urban areas. On the other hand, the rented accommodation is at a higher percentage in urban areas than in rural areas, which is perhaps very obvious. Due to the process of urbanization attracting more and more people each day for trying their settlements in cities and the townships.

The research data shows that there are more vacant houses in government schemes then in privately constructed schemes. Further, there are more vacant houses in the South-East than in the South-West areas. On average, South-East and North-East zones seem similar in vacant houses. However, their distribution in government and private societies are significantly different. In the case of the South-East zone, the overall vacant house rate is about 14.2 percent; however, the rate of vacant houses in government societies (20 percent) is almost double as compared to private societies (10.7 percent). The difference of about 9.3 percent is statistically significant at a 1 percent level of significance.

Similarly, in the case of the North-East zone, rates of vacant houses in government societies (18.9 percent) are almost four times higher as compared to private societies (5 percent). This four-times difference is also statistically significant. South-West zone shows the least vacancy rate (3.7 percent) among all zones. Interestingly, here, we have more vacancy rates in private societies (5.2 percent) as compared to government societies (1.2 percent). This difference is also significant but at a 5 percent level of significance. North-West zone seems very comparable with the North-East zone in case of the size of the difference between government and private societies for vacant houses. Though, we have 10.7 percent vacant houses in the South-West zone, which is lesser than the North-East zone. Nevertheless, vacant houses in government societies (17.7 percent) is more than 3 times higher as compared to private societies (5.6 percent). This difference is also statistically significant at 1 percent level of significance.

Residential rental units should be included as part of priority sector lending by banks for institutional investors; they must be given longer-term financing options.

Vacant homes should be taxed at a higher rate than occupied units, creating a disincentive to keep homes unoccupied.

Lower taxes and higher FSI should be offered to institutional investors in residential housing units with a lock-in period before which they cannot sell the units individually.

The type of road may be a perfect proxy for the connectivity and the level of prosperity of that area. It is interesting to notice that societies associated with the main road reported the least percentage share (6.25 percent) in the critical vacancy category (greater than 30 percent vacancy rate). Because these societies must be located in posh areas and access to basic amenities such as schools, garden, mall, and hospital, etc. are likely to be more convenient. Societies associated with interior road reported the highest percentage share (22.47 percent) in the critical vacancy category. Because they are likely to be located in the interior part of the city where people might be facing the problem of connectivity, lack of accessibility to basic amenities, poor infrastructure, and security issues, etc. These factors must have discouraged potential buyers from purchasing a house, or people might have bought the house for investment purposes but did not have shifted to stay.

The report also tried to measure the present value of the houses and value of the same houses 3 years ago. Then, the growth of value appreciation has been calculated for 3 years and classified into 5 different quintiles. Quintile 1 refers to the least appreciation, while Quintile 5 presents the highest appreciation. It is interesting to notice the negative appreciation in Quintile 1, which means that there are some societies where the value of houses has come down as compared 3 years ago. Though, value appreciation of Quintile 1 to Quintile 4 has been increased from 4.4 percent to 49.2 percent. However, the rate of vacant houses in the first four quintiles (Quintile 1 to Quintile 4) do not look significantly different because they range from 10.1 percent to 11.2 percent. In the case of Quintile 5, where the highest appreciation has been reported in the last 3 years, it also said the highest vacant houses (about 14 percent). In this quintile, on average, the value of a house has been increased by 124.2 percent, where about 80 percent is the minimum appreciation, and about 185.7 percent is the highest appreciation in the last 3 years. The direct and positive relationship between appreciation values and the number of vacant houses shows an indication of investment. More appreciation is more likely to happen in prosperous areas, and well-connected societies, where there is a possibility of having more than double value in only 3 years. So, people purchase these houses for investment purposes and do not prefer to shift in those houses or rented out them to others.