A Data-Driven Survey on Cost of Living, Salary Affordability in Indian Cities

Abstract

This paper presents a quantitative study of living costs, rental expenses, and average monthly salaries across major Indian cities. Using open data from LivingCost.org, converted to INR, the study explores affordability, correlation among key financial indicators, and identifies regions exhibiting high or low economic balance. The analysis further introduces an extended socioeconomic discussion of how cities where the average salary covers less than living expenses tend to experience rising debt levels and social strain, including elevated crime rates and financial insecurity.

Introduction

This study examines urban affordability in India by analyzing how far the average salary can support a standard single-person lifestyle across 103 cities. Using data from LivingCost.org, the study evaluates cost of living, rent, salary, and months of expenses covered, employing descriptive statistics, correlation analysis, and visualizations. Key findings indicate that salaries are generally insufficient to meet living costs, with average rent consuming 43.5% of income and some cities, like Mumbai, showing salary-to-expense ratios as low as 0.3, signaling high financial stress.

High correlations between rent, overall living costs, and salaries suggest urban wages rise with costs, yet affordability gaps persist, particularly for lower-income groups. When salaries cover less than half of expenses, households face rising debt, financial stress, reduced savings, and potential social instability, highlighting socioeconomic risks beyond mere economics. The study underscores the importance of these insights for individuals (budgeting and relocation), employers (equitable pay), and policymakers (urban inequality and social resilience).

Finally, while the analysis uses nominal INR values, future incorporation of Purchasing Power Parity (PPP) could enable international comparisons of true affordability and help assess whether Indian urban wages are globally competitive.

Conclusion

This study highlights the interconnected dynamics of cost, rent, and salary across Indian cities. While urban salaries correlate with expenses, affordability remains uneven. The findings underscore the need for urban wage alignment, improved rental regulation, and long-term financial planning to reduce household debt. Future research may integrate familylevel costs and inflation-adjusted time series to assess trends more comprehensively.

References

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Copyright

Copyright © 2025 Shivanshu Pande. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.