This paper makes an attempt to examine the existing housing conditions and quantify the extent of housing shortage in Indian economy. The main objectives of the study are: (a) to examine the growth and composition of housing stock; (b) to estimate the extent of housing shortage using alternative criteria; (c) to forecast the likely magnitude of housing shortage in the years 1980-81 and 1990-91 and (d) to examine the overall investment implications of the housing policy aiming at eliminating the housing shortage by 1990-91. The study covers the period from 1960-61 onwards. The analysis of housing conditions and housing shortage is made separately for rural and urban areas at the state level.