31% Indians eye home ownership in 5 years as money confidence rises: Report | Personal Finance

Home ownership is the top five-year financial goal for 31 per cent of lower-middle-class Indians, according to a survey published on Tuesday.

 

Home Credit India’s fourth edition of “The Great Indian Wallet 2026” said that the share has risen by 8 percentage points from last year, marking the largest increase among the financial goals tracked by the study.

 

The findings suggest that households are directing their financial surplus towards long-term asset creation rather than immediate consumption. This shift comes at a time when the study’s Financial Well-Being Index has reached its highest level since its launch in 2023.

 
 

Home ownership is particularly important for women, with 40 per cent of female respondents identifying buying a house as a five-year priority, compared with 29 per cent of men.

 

Financial confidence reaches a new high

 

Home Credit India’s proprietary Financial Well-Being Index rose to 40 in 2026 from 34 in 2025. The improvement was led by the savings and investment components, which recorded their strongest gains in the four editions of the study.

The broader survey also points to stronger confidence about the future. About 85 per cent of respondents said they were confident of achieving their personal financial goals over the next five years, while 87 per cent remained hopeful that their overall financial situation would improve.

 

The improvement in financial sentiment also appears to be linked to changes in household expenses. Half of respondents said managing household expenses had become less stressful, while 47 per cent said dealing with unexpected expenses had become easier following GST-related price changes. Another 63 per cent said they felt more confident about working towards their future financial goals.

 

Savings are providing the base for bigger goals

 

The survey’s savings data provides an important backdrop to the rise in home-buying aspirations.

 

The average respondent in the study reported monthly income of ₹35,000 against essential expenses of ₹21,000, leaving around ₹14,000 before accounting for other spending and financial commitments.

 

The report found that 53 per cent of respondents were able to save money after meeting their monthly expenses. However, the improvement is not universal. About 36 per cent said they could manage their monthly expenses but had nothing left to save, while 11 per cent said they needed to borrow to meet their monthly expenses.

 

The savings component of the Financial Well-Being Index rose sharply to 31 in 2026, from 23 in 2025. The investment score also climbed to 31 from 17 a year earlier, suggesting that households are becoming more willing to move beyond simply preserving money towards building assets.

 

Gen Z reported the highest saving rate among the generations surveyed, at 58 per cent, followed by millennials at 53 per cent. Gen X recorded a lower 44 per cent, reflecting its higher household responsibilities.

Home buying moves ahead of business and consumption

 

While buying a house emerged as the leading goal at 31 per cent, starting or expanding a business followed at 25 per cent. Saving for children’s education was cited by 14 per cent, while paying off existing loans accounted for 10 per cent and buying a four-wheeler for 9 per cent.

 

The shift is more notable when compared with shorter-term goals. The study found that aspirations for buying a two-wheeler and international travel weakened. This suggests that some households are prioritising goals that build longer-term financial security over discretionary consumption.

 

Entrepreneurship, however, remains a significant ambition. Gen Z respondents showed the strongest interest, with 31 per cent identifying starting or expanding a business as a five-year goal, compared with 19 per cent among Gen X. Men also reported greater entrepreneurial intent than women, at 26 per cent versus 20 per cent.

 

Credit is becoming part of the financial planning mix

 

The study also highlights the growing role of credit in achieving financial goals. About 82 per cent of respondents identified affordable access to credit and digital financial tools as an important enabler of financial security and goal achievement. The figure was even higher among Gen Z respondents.

 

This does not necessarily mean consumers are becoming more dependent on borrowing. Instead, the survey indicates that planned credit and EMIs are increasingly being viewed as tools for financing important purchases. About 62 per cent of respondents said they were more confident using credit or EMIs for planned purchases following the GST-related changes.

 

For prospective home buyers, however, affordability remains critical. A home loan can help bridge the gap between accumulated savings and the purchase price, but the size of the EMI, down payment and other ownership costs will determine whether the aspiration can be converted into a sustainable financial decision.

 

The confidence story is not uniform

 

The improvement in financial well-being varies across demographic and geographic groups. Tier-1 and Tier-2 cities have outperformed metros on several measures, while the North, East and West have reported stronger improvements than the South.

 

The study also found that income has broadly stabilised rather than continued its earlier pace of increase. The current income score stood at 45 in 2026, compared with 46 in 2025. This indicates that the improvement in financial confidence is not simply a result of sharply higher earnings; stronger savings and controlled essential expenses are also contributing to the picture.

 

For households considering a home purchase, this distinction matters. A stronger financial position can improve the ability to build a down payment and absorb loan repayments, but home ownership still requires careful assessment of income stability, existing debt, emergency savings and the total cost of ownership.

 

The findings of “The Great Indian Wallet 2026”, based on responses from borrowers aged 18-55 across 17 Indian cities, therefore point to a broader change in household priorities: financial relief is increasingly being channelled towards savings, investments and durable assets, with home ownership now firmly at the centre of those aspirations.