The Challenge

Over the past 20 years, India has seen a 73% increase in urban population, the majority of whom are migrants from rural areas in search of jobs and education, and a better life. With more people living in urban areas than ever before, India’s housing shortage is a major issue affecting more than 18 million people.

For the majority of migrants, most of whom are low-wage workers or students earning less than $4 a day, purchasing a home or long-term rental is neither affordable nor practical considering their migratory and income status.

Additionally, the rental housing market is not sophisticated or robust enough to meet neither current nor future needs, as urban population numbers will likely continue to climb over the next 10-15 years.

The Innovation

Aarusha Homes provides safe, affordable, rental housing solutions to low-income migrants living in India’s urban cities. Currently, Aarusha operates 21 hostels in the form of dormitories across cities of Hyderabad, Bangalore and Pune.

Housing costs vary based on location, sharing level, and income, allowing Aarusha to offer affordable housing to the widest possible spectrum of the socioeconomic ladder. These hostels include amenities such as food, electricity, hot water and clean environment.

Payments are mostly in the form of cash and in advance of stay. This pay-as-you-go model reduces the need for working capital for day-to-day operations while meeting the needs of the company’s migrant customers.

The Impact

Access to low-cost housing will positively impact populations through savings on alternative housing and a higher likelihood of retaining their jobs.

While it is very difficult for India’s low-income migrants living and working within urban cities to afford a quality home, affordable rental housing solutions like Aarusha’s can provide high-value accommodations that can contribute to improving customers’ education and employment outcomes.

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