Why Gen Z Is Leaving Metro Cities For Tier-2 Towns

An increasing number of Gen Z professionals in India are relocating to Tier-2 cities, driven by factors such as affordability, improved infrastructure, and better work-life balance. Cities like Indore, Chandigarh, Lucknow, Jaipur, Coimbatore, and Kochi are emerging as preferred destinations, offering a blend of modern amenities and cultural richness.

The rise of remote work has enabled young professionals to work from locations offering a lower cost of living without compromising on lifestyle. Tier-2 cities provide affordable housing, reduced traffic congestion, and cleaner environments compared to metropolitan areas. Government initiatives like the Smart Cities Mission and the development of Special Economic Zones (SEZs) have further enhanced the appeal of these cities by improving infrastructure and creating job opportunities.

A number of significant factors are behind this change, such as:

1. Growing job markets

According to Ernst & Young (EY), Tier-2 cities are witnessing a hiring boom, with virtual-first Global Capability Centres (GCCs) and IT and Banking, Financial Services, and Insurance (BFSI) sectors expanding their presence. A Randstad 2025 report reveals job openings in these cities rose nearly 42%, compared to just 19% in metro hubs. Global tech firms like Genpact, HCLTech, Cognisant, and Infosys are opening offices in Melur, Nagpur, Lucknow, and Bhubaneswar to access local talent and reduce costs.

Also Read | How Big Tech Companies Are Now Expanding Into India's Smaller Cities

2. Lower living costs & better quality of life

Employees in Tier-2 cities earn 25-35% less but enjoy proportional cost savings. Deloitte/Nasscom data shows salaries drop by 25-30%, and real estate rents are about 50% cheaper than metros. Residents cite cleaner air, less congestion, and open spaces all contributing to improved mental and physical well-being.

3. Infrastructure & remote-work readiness

Enhanced internet access (including 5G rollout), coworking spaces, better air connectivity under UDAN, and improved roads in cities like Bhubaneswar, Jaipur, and Coimbatore have enabled a seamless transition to remote or hybrid work.

4. Cultural vibrancy & social engagement

Smaller cities offer a rich cultural life, local festivals, community events, and heritage sites combined with more nurturing environments. Many young migrants appreciate the community feel and find it easier to participate in civic and creative activities.

5. Education & career-focused growth

Improved educational infrastructure, including engineering institutes and vocational centres in Jaipur, Pune, and Vadodara, makes Tier-2 cities attractive for both education and professional development.

Gen Z's move to Tier-2 cities is propelled by growing job opportunities, affordable living, quality of life, and cultural/community appeal. These trends suggest a lasting decentralisation of India's workforce, marking a significant shift in the nation's urban dynamics.