Housing consumption and housing adequacy in rural India The trends pattern and determinants

Abstract

Housing, generally accepted as a cardinal requirement for the existence and development of mankind, is regarded as one of the central components of the quality of life and an important indicator of human welfare. It is also a symbol of dignity especially in rural areas. Being the largest and the most expensive consumption good, there exist significant variations in the level of housing consumption and housing adequacy among households especially in rural areas. The study titled “Housing Consumption and Housing Adequacy in Rural India: The Trends, Pattern and Determinants” focuses on rural housing consumption and its determinants with special attention on housing adequacy in rural India. The study used NSSO unit level data of 58th, 65th, 69th, and 76th rounds for rural India during the period from 2002 to 2018. For measuring housing consumption the study used variables such as floor area, number of rooms and number of living rooms both on household and on percapita basis. The results of the study indicate that there occurred significant changes in housing consumption from 2002 to 2018. Utilising structural equation modelling techniques, the study found that gender, economic status, economic activity, usual principal status, household size, age of the head, educational status, number of married couples in the household, social group, religion etc. exerts significant influence on housing consumption of rural households in India. The study constructed a Housing Adequacy Index (HAI) using principal component analysis, based on NSSO 69th and 76th round data, by taking variables representing structural adequacy, sufficient area and living facilities, drinking water facilities, sanitation facilities etc. It was found that the level of housing adequacy has shown an improvement from 69th round to 76th round. The social group-wise analysis reveals that housing consumption and housing adequacy of SC/ST households stood below that of OBC/Others categories. It was found that both housing consumption and housing adequacy are positively correlated to economic status of the household. The analysis based on categories of economic activity reveals that the secondary sector stood at a lowest position in terms of both housing consumption and housing adequacy comparing to that of primary and tertiary sectors. State level analysis reveals that there exist huge inter-state variations in both housing consumption and housing adequacy. Kerala is one among the states occupying highest positions in housing consumption and housing adequacy. The study concludes that socio-economic, occupational and regional differences in housing consumption and housing adequacy may be given consideration in framing policies in the housing sector in general, and housing sector of rural areas in particular.