Tupaki Analysis: Why People Leaving Metro Cities For Tier 2 Cities?

After the onset of the Covid pandemic, things have been changing drastically rather quickly. One of the main changes that is being observed as the consistent shift of the urban population from Metropolitan city to urban towns.

This is becoming particularly prevalent these days, and we have an interesting observation of what is actually happening.

Firstly , a salary of ₹50,000 to ₹1,00,000 is simply not sufficient in the urban pockets of Metro cities like Hyderabad, Bengaluru, Chennai, Mumbai, and Delhi these days.

On top of the existing rental crisis, there is the growing fuel charges and electricity and other miscellaneous bills that have been piling up drastically. We have arrived at a point where a family of 3 to 4 are simply not able to sustain on moderate salaries in the current urban market.

So people have started to actively shift to more rural areas, including their hometowns in order to stay close with their family members, while also reducing on the costs. This is providing them with more financial to take decisions and accordingly.

For instance, a significant portion which could quite possibly be 30% of the monthly salary is going to rental payments and bills itself. So it is only natural that families start to gradually move away from this aspect so that they can avoid paying the rentals in their hometowns.

But this place only to work from home employees who do not have to visit the office premises every week. They are having this luxury of travelling at will to their home destinations and work from there remotely.

But the rest of the urban population who is having to go to office spaces every week as stuck with the same situation. There is not too much change in terms of modifying the expenditures for them.

Add to that we are witnessing a significant boom in the tier 2 cities as well these days. There is increased precipitation of start-ups and urbanisation culture even in the developing cities and towns for the last 5 years.

So there are essentially multiple factors continuing to encourage the urban population to graduate shift from metro cities to tier two cities in view of the decreased expenditures and elevated living standards.