Why does Mumbai face serious housing shortages and overcrowding?

Mumbai faces significant housing shortages and overcrowding primarily due to its rapid population growth and the physical constraints of its island location. As a major financial and commercial hub, the city continues to attract a large influx of people, which has led to the development of makeshift, often illegal, squatter settlements to accommodate those who cannot afford formal housing.12

The scarcity of affordable housing is a persistent issue, as most residential property is privately owned and expensive. While the government has attempted to address these challenges through public housing initiatives and by encouraging development in areas like Navi Mumbai, these efforts have struggled to keep pace with the city's expanding population. Consequently, the combination of limited land, high demand, and the ongoing immigration of labor results in widespread areas of poorly maintained housing and extreme density.213