India, July 9 -- The affordable housing crisis is increasingly affecting metro cities, while Tier 2 cities have seen significant financial improvements and enhanced quality of life among homeowners, according to a survey by Home First Finance.

The survey attributed these gains in smaller cities are due to lower living costs, greater access to local employment opportunities, and supplementary income from family-run businesses. Affordable housing options in Tier 2 cities have made it easier for families to manage EMIs without sacrificing their lifestyle, unlike in Tier 1 metros, where rising costs often lead to mounting financial stress.

In contrast, the study, based on responses from 280 households across India, found that high living co...