Survey Highlights Homeownership being Easier in Tier 2 Cities

While India's metro towns struggle with increasing affordable housing shortages, Tier 2 cities are becoming oasis of financially stable homeownership, says a new survey by Home First Finance, conducted among 280 households in India. The research points to striking differences between Tier 1 and Tier 2 city homeowners experiences.

In cities such as Mumbai, Delhi, and Bengaluru, increasing property prices and expensive living have rendered home ownership a struggle. "It's becoming impossible for middle-class families to purchase a simple home, let alone dream of something better," said one Reddit user, pointing out that even modest 2BHK flats in older buildings now cost approximately ₹1.7 crore. 

Key Highlights-

• Tier 2 city homeowners report higher income and savings post-purchase
• 58% of financially stressed families are from metro cities, survey finds
• Lower living costs and local jobs make homeownership easier in smaller cities

Conversely, Tier 2 city dwellers report better financial health after homeownership. As per the survey, 50% of smaller city residents experienced an increase in income levels, whereas 56% reported added savings. "Yes, there is a lot of mental calmness that my family and I feel now—what else does one need in life?" remarked a homeowner.

READ MORE: Mumbai Hits Remarkable Property Registrations Record in H1 2025

The survey credits this to the reduced cost of living, proximity to local employment opportunities, and patronage from family-owned enterprises. "This house is more than a home, it's a reflection of all that I have achieved," another respondent added.

Additionally, 63% of the self-employed were more confident and embraced business ventures after homeownership. "Home-ownership provided them with the confidence to scale up their business operations," the report added.

58% of families under financial stress came from Tier 1 areas in metro cities, highlighting the increasing urban housing burden.