2025 House Affordability Index in India: State Rankings Explained

Rank	State/UT	Median House Price (₹ Lakh)	Median Annual Income (₹ Lakh)	Affordability Index
1	Bihar	33.91	3.2	10.6
2	Jharkhand	29.06	3.4	8.5
3	Odisha	31.00	3.8	8.2
4	Chhattisgarh	27.13	3.9	7.0
5	Madhya Pradesh	38.75	4.5	8.6
6	Uttar Pradesh	62.97	4.8	13.1
7	Rajasthan	53.28	5.2	10.2
8	Assam	24.22	4.1	5.9
9	West Bengal	46.50	5.5	8.5
10	Andhra Pradesh	43.60	5.8	7.5
11	Punjab	50.38	6.2	8.1
12	Gujarat	46.02	6.5	7.1
13	Tamil Nadu	67.82	7.0	9.7
14	Telangana	72.66	7.5	9.7
15	Kerala	46.50	7.8	6.0
16	Haryana	96.88	8.5	11.4
17	Karnataka	125.99	9.0	14.0
18	Maharashtra	242.19	9.5	25.5
19	Delhi	174.39	10.0	17.4
20	Himachal Pradesh	22.28	5.5	4.1
21	Uttarakhand	21.31	5.8	3.7
22	Jammu & Kashmir	19.38	5.2	3.7
23	Goa	17.44	6.0	2.9
24	Tripura	11.63	4.0	2.9
25	Nagaland	10.65	4.2	2.5
26	Manipur	10.65	4.2	2.5
27	Meghalaya	9.69	4.3	2.3
28	Arunachal Pradesh	9.69	4.3	2.3
29	Mizoram	7.75	4.5	1.7
30	Sikkim	7.75	4.5	1.7
31	Puducherry	6.78	5.0	1.4
32	Chandigarh	53.28	8.0	6.7
33	Andaman & Nicobar	4.84	5.5	0.9
34	DNH & DD	4.84	5.5	0.9
35	Ladakh	3.88	5.0	0.8
36	Lakshadweep	3.88	5.0	0.8

The house affordability index in India for 2025 illustrates the number of years of complete income a typical family requires to purchase a standard 90 square meter apartment.

A lower figure indicates that housing prices are excessively high in relation to earnings.

This article, based on a comprehensive ranking of all 28 states and 8 Union Territories, elucidates the statistics, explains why certain regions remain affordable while others become unattainable, and identifies the underlying factors.

The information is sourced from Properstar, 99acres, NFHS-5 income surveys, and RBI reports, with complete figures for 2025 expected in mid-2026.

The national average affordability index reaches 17.9. This signifies that an average Indian family requires almost 18 years of total income to acquire a home.

Bihar emerges as the most affordable state with an index of 10.6. Jharkhand, Madhya Pradesh, and Odisha closely follow with scores of 8.5, 8.6, and 8.2 respectively.

Gujarat achieves a score of 7.1, whereas Maharashtra ranks the lowest at 25.5. Delhi is at 17.4, Karnataka at 14.0, and Uttar Pradesh at 13.1.

Smaller Union Territories such as Ladakh and Lakshadweep exhibit the lowest scores at 0.8 each, yet their high costs render them challenging as well.

What accounts for Bihar’s success while Maharashtra struggles? Let us analyze the situation.

Reasons Why Certain States Remain Affordable

Bihar and Jharkhand: Low Costs, Modest Salaries

Bihar’s affordability index of 10.6 is attributed to inexpensive housing and low wages.

A 90 square meter apartment is priced at 33.91 lakh, while families earn merely 3.2 lakh annually, according to the NFHS-5, which has been updated to reflect a 6% growth.

The limited job opportunities in urban areas suppress demand. Jharkhand has a score of 8.5, with housing priced at 29.06 lakh and an average income of 3.4 lakh.

The slow growth of coal towns like Dhanbad results in lower construction costs.

Madhya Pradesh and Odisha: Land Availability and Development

Madhya Pradesh achieves a score of 8.6 due to the spaciousness offered by cities like Bhopal and Indore.

The cost of homes is 38.75 lakh, while the average income is 4.5 lakh. Odisha maintains a score of 8.2, with housing prices at 31.00 lakh and earnings at 3.8 lakh.

The job market is dominated by government positions, rather than high-paying technology roles.

Gujarat and Punjab: Employment Opportunities Without Excessive Costs

Gujarat’s index of 7.1 indicates a favorable balance. In Ahmedabad, flats are priced at 46.02 lakh, while workers in textiles and diamonds earn 6.5 lakh.

Land remains accessible outside urban centers. Punjab scores 8.1, with housing costs at 50.38 lakh and an average farm income of 6.2 lakh.

Maharashtra and Delhi: Urban Aspirations Diminish Prospects

Maharashtra’s index of 25.5 is significantly high due to the exorbitant cost of living in Mumbai, where prices reach 242.19 lakh.

Despite an average income of 9.5 lakh, families would require 25 years to save enough for a home. The influx of migrants is driven by opportunities in banking, film, and technology, yet land availability is rapidly diminishing.

Delhi’s score of 17.4 is based on housing prices of 174.39 lakh and an average income of 10 lakh. The demand is further heightened by the presence of IT parks in Gurugram.

What Determines Affordability?

A variety of factors influence these scores.

Income versus Price Disparity

The national average income stands at 7 lakh, while the cost of homes is 124.99 lakh.

Workers in Maharashtra earn a high income but encounter costs of 25,000 rupees per square foot. In contrast, Bihar has lower wages but only charges 3,500 rupees per square foot.

Types of Employment

States with a tech focus, such as Karnataka (14.0), offer salaries of 9 lakh but have home prices of 125.99 lakh.

Agricultural states like Bihar maintain both wages and prices at lower levels.

Migration Trends

According to the Census, over 10 crore individuals have migrated to urban areas since 2011.

Maharashtra and Delhi account for 30% of this migration, resulting in a 5% annual increase in prices, as reported by the RBI.

Land Regulations

Mumbai permits the construction of tall buildings but suffers from a lack of available land.

Conversely, Gujarat is planning new towns, which helps to keep costs stable.

Are These Figures Trustworthy?

The national index of 17.9 is based on Properstar’s figure of 12,895 rupees per square foot and the NFHS-5 income, which has increased by 6% annually.

Sales data from 99acres closely aligns with these figures. Rural regions may conceal scores that are 10% better, yet urban data remains consistent.

The complete reports for 2025 could indicate a shift of ±10%.

What Steps Can India Take to Enhance Affordability?

India requires the PMAY-U housing initiative. This program aims to deliver 1.2 crore housing units by 2024.

Gujarat has reduced stamp duty by 2%, resulting in savings of 1 lakh for buyers. Bihar is providing training for youth to secure urban employment, which could increase their income by 15%.

Improved bus services are also necessary to alleviate congestion in cities.

Source

• 99acres. (2025). Residential real estate price trends: India 2024-25.
• Properstar. (2025, October). Global property price index: India residential market update.