31% lower-middle-class Indians prioritise home ownership over business, travel: Survey

Buying a home has emerged as the biggest five-year financial priority for 31% of lower-middle-class Indians, according to a survey released on Tuesday. The figure has increased by 8 percentage points from last year, making home ownership the fastest-growing financial goal tracked by the study.

The findings are part of Home Credit India’s fourth edition of “The Great Indian Wallet 2026”. The report suggests that more households are looking to use their extra income to build long-term assets rather than spend it on immediate needs.

Women show stronger preference for home ownership

The desire to own a home was particularly strong among women surveyed. Around 40% of female respondents said buying a house was among their key financial priorities for the next five years.

This compares with 29% of male respondents, showing a notable gender gap in home-buying aspirations.

The survey also found an overall improvement in financial confidence. Home Credit India’s Financial Well-Being Index rose to 40 in 2026 from 34 in 2025, reaching its highest level since the index was introduced in 2023.

The improvement was mainly driven by stronger savings and investment scores, both of which recorded their biggest increases across the four editions of the survey.

85% confident about meeting financial goals

The survey pointed to growing optimism about personal finances. About 85% of respondents said they were confident of achieving their financial goals over the next five years, while 87% believed their overall financial condition would improve.

Household expenses also appear to be becoming easier to manage for some consumers. Half of those surveyed said managing regular household expenses had become less stressful.

Meanwhile, 47% said unexpected expenses had become easier to handle following GST-related price changes. Another 63% said they felt more confident about working towards their long-term financial goals.

How much are households saving?

The survey’s savings figures offer some context for the growing interest in buying homes.

The average respondent reported a monthly income of ₹35,000 and essential expenses of around ₹21,000. This leaves approximately ₹14,000 before other expenses and financial commitments are taken into account.

Overall, 53% of respondents said they were able to save after paying their monthly expenses. However, not everyone had money left over. Around 36% said they could cover their expenses but were unable to save, while 11% said they had to borrow money to meet their monthly needs.

The savings score in the Financial Well-Being Index increased significantly, reaching 31 in 2026 compared with 23 in 2025. The investment score also rose sharply to 31 from 17.

Gen Z has highest saving rate

Gen Z recorded the highest saving rate among the generations covered in the survey, with 58% reporting that they save. Millennials followed at 53%, while the figure stood at 44% for Gen X.

The report attributed the lower saving rate among Gen X respondents partly to their greater household responsibilities.

While home ownership topped the list of five-year goals at 31%, starting or expanding a business came second at 25%.

Other goals included saving for children’s education at 14%, repaying existing loans at 10% and buying a four-wheeler at 9%.

Indians prioritise long-term financial security

The preference for buying a home becomes more significant when compared with some shorter-term aspirations.

The survey found that interest in buying a two-wheeler and travelling abroad had declined. This indicates that some households may be shifting their focus from discretionary spending towards goals that can provide greater long-term financial security.

Starting or expanding a business also remained a key ambition, particularly among younger respondents.

Around 31% of Gen Z respondents identified entrepreneurship as a five-year goal, compared with 19% of Gen X respondents. Men showed a stronger interest in starting or expanding a business than women, at 26% and 20%, respectively.

The report also highlighted the increasing role of credit and digital financial services in helping consumers achieve their financial goals.

Around 82% of respondents said affordable access to credit and digital financial tools was important for improving financial security and achieving their goals. The proportion was even higher among Gen Z respondents.

However, the findings do not necessarily indicate that consumers are becoming more reliant on borrowing. Instead, the survey suggests that people are increasingly viewing planned credit and EMIs as a way to fund major purchases.

About 62% of respondents said they were more comfortable using credit or EMIs for planned purchases following GST-related changes.