Sahil Gandhi, Assistant Professor at TISS and Meenaz Munshi, Senior Associate at IDFC Institute examine the problem of housing shortage in India cities in a well read Economics blog curated by Professor Ajay Shah. They highlight the causes for this phenomenon and give some recommendations.
"Over the years, rental housing as proportion of total housing has fallen from 54% in 1961 to 28% in 2011 in Urban India (Gandhi et al. 2014). Without a vibrant rental housing market labour markets cannot function efficiently (see Shah 2013). Bringing the private vacant housing stock into the rental market and understanding and resolving the reasons for vacancy in the government provided stock could significantly improve efficiency in utilising available stock of housing."
This article also appeared in Scroll on May 11, 2017, under the title: Housing paradox: Despite a severe shortage, 12% of houses in Indian cities are lying vacant.