Home Loan Industry , who will have the last laugh!

The home loan industry is at a fix, not because people are shying away from taking new home loans but because there is a quiet lull in this industry. With builders keeping on and on there is no way houses are selling. Who will have the last laugh, the borrower or the lender?the home buyer or the home builder?
The home loan industry was booming a few years back when everyone was applying for a home loan and with the tax benefits not just people who needed home loans but also those who could afford buying homes outright, were applying for and repaying home loans.There were lots of benefits involved in home loans earlier but now the situation has changed totally. The true picture now is that people are afraid of taking any loans . Financial instability and job insecurity are two major drawbacks everyone is facing. The rates of property are shooting the sky and once a flat of one room kitchen was affordable but now even small flats are worth lakhs of rupees.
Wonder who will have the last laugh the builders are going on taking loans from the industry and building ultra modern structures but the buyers are still waiting for homes to become affordable. The genuine buyer cannot afford houses with their high rates and the investment buyers would definitely not go in for a crore rupee flat!
The solutions must be practical and feasible. Unless the buyers see definite benefits the situation is not going to improve. there was news about Government giving extra 20% FSI to builders to build budget homes compulsorily in housing societies along with the other range homes.
Now builders are not very happy with this offer as people who would buy a bigger flat would not be very much happy with sharing the space with a single room kitchen families. Giving the same facilities for people buying one room and also those buying four would be unjust and also the buyers would not like to mingle among the total crowd. Justifiable, the slow snail movement with very few buyers who have no other options there are also many who are accepting the rented living offers. No commitments and no strings attached!