“The richest 5% need 100 years to buy a home”: a flawed survey

Last Week, #Finfluencers had a Field Day, Thanks to a 'Flawed' National Housing Bank (NHB) survey claiming:
“Even the 'richest' 5% in India would take 100+ years to afford a #home!”
A Perfect clickbait for finfluencers to spread misinformation and create panic!

But Here’s the Problem:
The survey assumes everyone spends 70% of their income on non-housing expenses, across income levels!
So, someone earning ₹10 lakh/year is assumed to spend ₹7 lakh, leaving just ₹3 lakh for housing. Is this really true?

What Happens:
As income increases, the savings rate typically rises too.
Yes, there’s lifestyle inflation, but for a prudent household, it rarely keeps pace with income growth.
Here’s a more realistic view:
- A household earning ₹1 lakh/month may save 10%
- At ₹5 lakh/month, savings could be 30%
- At ₹10 lakh/month, many save even more, because core expenses don’t scale linearly

A Personal Story:
A decade ago, I bought a home. The loan amount looked astronomical back then!
What did we do?
- Cut down expenses for 2 years and channeled every rupee into the loan account
- Focused on income growth, through upscaling, job switches, promotions
- Didn’t inflate our lifestyle - the goal remained: repay the loan ASAP
Result? The 25-year loan was repaid in less than 7 years!

Sadly, finfluencers won't tell you all this, because they know most folks don't have time to go beyond the #sensational headlines!