Residential Asset Price Monitoring Survey conducted by RBI

The Reserve Bank of India (RBI) has conducted the quarterly Residential Asset Price Monitoring Survey (RAPMS) on housing loans disbursed by select banks / Housing Finance Companies (HFCs) across 13 cities. The report indicated that housing affordability has 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. The HPTI ratio reflects affordability. Mumbai (with a HPTI of 74.4) remains the least affordable city in India. While Bhubaneswar (54.3) remains the most affordable city for home buying with a price-to-income ratio of 54.3 in the March quarter compared to 47.2 in March 2015. The concept of price-to-income ratio is used by lenders to measure affordability of residential property, essentially as a measure of purchasing power for home buyers.