79% households fund construction via own income, informal loans: NSO

Nearly 79% of households relied on their own income and loans from relatives to undertake construction activities over the past year, while only 21% accessed institutional finance, according to a pilot survey released by the National Statistical Office (NSO) on Friday.

The survey found that close to one crore households undertook some form of construction during the period, alongside around 10.2 lakh unincorporated enterprises engaged in such activities. The sample covered 19,154 households and 4,470 establishments.

Expenditure on materials accounted for nearly three-fourths of the total cost, while labour made up about 22%. Within material costs, bricks, cement, iron and steel together contributed nearly 60% of the overall expenditure.


On average, households employed about four labourers for construction work, whereas unincorporated enterprises engaged around five workers.

Access to institutional loans was higher in rural areas at 23%, compared to 13% in urban regions. Among major states, Maharashtra recorded the highest share—nearly 50%—of households reporting institutional finance as a funding source, followed by West Bengal and Karnataka.

The survey, conducted between July and December 2025, aimed to capture output, employment and capital formation in the unincorporated construction sector and among households building for their own use, given the sector’s significant role in the economy. Data on incorporated construction establishments will be covered in a separate survey.