As per Census of India 2011, around 31% of the Indian population (380 million) live in urban areas. With the growing concentration of people in urban areas, skyrocketing prices of land and high demand for real estate have forced the urban poor to occupy the marginal lands typified by poor housing stock, congestion and obsolescence.

In 2012, India's urban housing shortage was estimated at near 18.78 million households. (EWS) and (LIG) together accounts around 95% of the total urban housing shortage. This shortage is not completely due to the absence of housing but due to inadequate housing.

Around 80% of this shortage is due to households living in congestion, 12% is attributed to living in old and obsolescent housing and 5% living in katcha houses. Only 3% of the urban households in India are homeless.