39% Want a Home Within 5 Years — What’s Behind the Shift?

New Delhi: Buying a home is emerging as one of the biggest financial aspirations among Indians, signalling a growing shift from short-term spending towards savings, investments and long-term wealth creation.

Home Buying Leads Five-Year Financial Goals

According to Home Credit India’s ‘The Great Indian Wallet 2022’ report, 39% of people from the lower-middle-income segment identified buying a home within the next five years as their biggest financial goal. This was around eight percentage points higher than the previous year.

The trend highlights the continued importance of home ownership as a symbol of financial stability and long-term security among Indian households.

Women Show Stronger Home Ownership Aspirations

The desire to own a home is not limited to men. Around 40% of women surveyed identified home ownership as a major five-year financial goal, compared with 38% of men.

The figures indicate that women are increasingly playing an active role in household financial planning and long-term asset creation.

Business Expansion Comes Second

After home ownership, starting or expanding a business emerged as the second-largest financial priority, with 25% of respondents identifying it as a key five-year goal.

Other major financial goals included children’s education at 14%, debt repayment at 10% and buying a vehicle at 9%.

Savings Habits Show a Mixed Picture

The survey also provides an insight into the financial position of Indian households. Respondents reported an average monthly income of around ₹35,000, while essential expenses stood at approximately ₹12,000.

Around 53% of respondents said they were able to save after meeting their expenses. However, 36% reported having no savings, while another 11% said they had to borrow money to meet their expenses.

This suggests that while a substantial section of households is building a savings cushion, financial vulnerability remains a concern for many others.

Spending Takes a Back Seat

The findings suggest that discretionary spending, including travel and other lifestyle expenses, is becoming less prominent in the financial priorities of many Indians.

Instead, households are increasingly focusing on assets and goals that can provide long-term stability, such as owning a home, building savings, investing and expanding businesses.

What’s Driving the Shift?

Indians increasingly see homeownership as a symbol of financial security, family stability and long-term wealth creation. Rising aspirations, urbanisation and the desire to build tangible assets are strengthening this preference. At the same time, changing spending habits are encouraging households to prioritise savings, investments and property over discretionary expenses.

What It Means

The findings point to a broader change in the financial mindset of Indian households. Home ownership is increasingly being viewed not merely as a lifestyle choice but as an important component of financial security and wealth creation.

The strong preference for saving and investing also indicates greater awareness of future financial needs. At the same time, the fact that more than a third of respondents have no savings shows that rising financial aspirations do not necessarily translate into financial preparedness.

For the housing and financial sectors, the trend could mean sustained demand for affordable housing, home loans, savings products and investment opportunities, particularly among India's growing middle-income population.

Key Highlights

• 39% identify buying a home within five years as their top financial goal.
• 40% of women prioritise home ownership, compared with 38% of men.
• 25% aim to start or expand a business.
• 53% are able to save after meeting essential expenses.
• 36% have no savings, while 11% rely on borrowing to meet expenses.
• Indians are increasingly prioritising assets, savings and long-term financial security over discretionary spending.