Is Rent Becoming The Biggest Dealbreaker For Young Professionals?
Ridhima Gupta, 23, received a job offer from a company in Lower Parel with a monthly salary of Rs 60,000. She declined it after she checked the rents near the office. “When I got the offer in Mumbai, I was over the moon,” she says. “A basic 1BHK near the office was going for Rs 50,000 to Rs 60,000 a month. Even a shared flat would have taken a big part of my salary, and that was before food,…
Young professionals in Mumbai are increasingly considering rent as a major factor when evaluating job offers, as the cost of living quickly consumes their salaries. Ridhima Gupta, a 23-year-old recent graduate, turned down a lucrative position in Lower Parel due to the high rental prices, which ranged from Rs 50,000 to Rs 60,000 for a one-bedroom flat.
HR executives and recruitment experts report that Gen Z and millennials now scrutinize their potential earnings after accounting for rent, travel expenses, and other living costs. Companies such as AscentHR Technologies have observed a rise in candidates weighing the net take-home pay against their preferred locations. Even in other cities, the affordability index in India reveals that housing costs in Mumbai and the NCR (National Capital Region) are above the 50% threshold considered unaffordable, while cities like Ahmedabad, Kolkata, and Pune are relatively more affordable.
Young professionals are drawn to cities like Kolkata due to lower housing costs, as the affordability index in these areas requires only around 22-25% of household income for home loan EMIs, leaving more money for savings and investments. To address this issue, employers are offering relocation assistance, temporary accommodations, and flexible work arrangements to ease the financial burden on employees.
Experts suggest that companies should include location costs in salary discussions, as well as consider offering housing support to attract and retain talented employees.
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