“Value Engineering in Affordable Housing: A Study on Cost Optimization and Sustainable Construction Practices with Case Analysis in Nasik City”

Abstract

The construction industry is one of the largest employment-generating sectors in India after agriculture and plays a crucial role in the nation’s economic development. However, rapid urbanization has intensified the demand for affordable housing, exposing challenges such as land scarcity, high construction costs and limited financing. According to the 2011 census, India faced a shortage of nearly 19 million housing units, leading the government to implement several affordable housing initiatives. Affordable housing aims to ensure that housing costs do not exceed 30% of household income while maintaining livability, safety and inclusivity. This paper explores the application of Value Engineering (VE) as a systematic approach to balance cost, quality and time in affordable housing projects. By identifying unnecessary costs without compromising performance, VE enhances decision-making and optimizes resource allocation. The study emphasizes the significance of affordable housing in reducing homelessness, promoting social justice, generating employment and improving community health. A case analysis of housing projects in Nasik City highlights how VE principles can be applied to select construction systems, reduce wasteful expenditure and improve housing quality. The findings demonstrate that modular construction methods, standardized designs and collaborative planning with urban authorities can significantly contribute to resolving India’s housing shortage while ensuring sustainability.