Socio-Economic Determinants of Incremental Housing: An Account of a Few Cases in the Peripheries of Ahmedabad, India.
March 27, 2021
- By Rohit Lahoti
Guest Writer
Rohit Lahoti is an urban development practitioner working on issues of housing and urban planning in India. He holds a postgraduate degree in Urban Development Planning from University College London.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Indian Housing Federation (IHF).
Introduction
Incremental owner-driven construction is a prominent channel for investing in the supply for housing that is affordable to low-income households at the bottom of the pyramid. As an estimate based on current trends, over half the required supply for low-income housing in India is likely to emerge from incremental owner-driven construction, considering that most housing in rural India is also owner-driven. Within this mode of construction, there is no standard rule or a guidebook that determines methods and principles of incremental construction. The steady efforts of the owner and owner’s family along with a range of socio-economic dynamics determine the process and the output of construction. Incremental housing enables a gradual process whereby the house is built, improved, or extended by owners as and when access to finance, time and materials is available.
This article reflects and delves deeper into the aspects of incremental housing and the governing socio-economic factors. The article is based on field experiences with some low-income households in the periphery of Ahmedabad city, within the Ahmedabad District; mainly in:
The villages of Soyla and Modasar in Sanand Tehsil, and
The villages of Viramgam and Bhojva in Viramgam Tehsil.
Case Studies of Incremental Construction
The following three case studies showcase how different households navigate the various stages of incremental self-built housing.
Inferences from the Case Studies
Some of the learnings from the above cases include the following.
1. Incrementality offers flexibility and prioritisation
Families choose to build their houses incrementally because that gives them flexibility, both need-based and financial. They prefer to prioritise their immediate requirements, and also foresee the future to invest strategically. For instance, in some of the cases, people chose to hold-up the last part of the house construction for varied reasons and planned to complete it sometime in future.
2. Responsibility entrusted to contractor
Households can choose to go by the route of appointing a contractor for their house construction or can take the non-contractor route. In the cases above, it was interesting to see how families chose to appoint a contractor by paying a lumpsum amount, as agreed upon, and ensuring that the work is completed within a promised time.
3. Borrowing through informal channels
The innovative ways of procuring finances for getting the house constructed were evident in multiple cases. Often when the banks do not approve loan applications, households try to avail subsidies through schemes like PMAY-U, borrow from NGO-based cooperatives, or approach local moneylenders and relatives.
4. Housing closer to the workplace
Sanand is an industrial area which creates immense work opportunities for households living there and in the nearby villages. This is one of the main reasons why many of them do not travel to Ahmedabad for work since they have their livelihood closer to their homes. However, people who choose to travel to Ahmedabad are mainly the ones who have better educational qualifications and seek better work opportunities in IT or call centres in the city. It is also a matter of pride for some of them to say that they work in Ahmedabad, even if they might not have high-income levels.
5. Socio-economic status determines housing
The caste dynamics are very strong in rural Gujarat. Depending on what rungs of caste hierarchy people belong to, it can determine the construction quality and the typology of their house. At the same time, the kind of livelihoods the households are engaged in and how they would eventually upskill their children is also heavily determined by caste politics.
6. Limited focus on the rate of interest on loans
One of the common and evident traits across different families was that they were hesitant to discuss the rate of interest levied on their loans. They preferred to avoid counting the extra cost they were incurring but rather get the payment cycle started without overthinking.
Conclusion
Incremental housing among the economically weaker section (EWS) households has significant potential in mitigating housing poverty by providing flexibility to construct and enhance the houses, when the resource capacity improves. It is an essential part of the housing market and enables one to create affordable and adequate housing in innovative ways. Beyond contextual practices deployed by a household, the interventions of material supply, use of specific materials, technology, social support, financial accessibility, and management also influence the methods of developing incrementality in housing.