Summary of Key Points
Today, many employees working at large companies in major cities such as Beijing and Shenzhen are choosing to live in urban villages rather than luxury apartments. This is not due to insufficient income or a downgrade in their lifestyle, but rather a rational decision in the face of job uncertainty and high living costs. By reducing their housing expenses, they can save more cash as a buffer against risks. Additionally, urban villages offer advantages such as being close to work areas, having comprehensive amenities, and a vibrant community atmosphere, making this choice the most practical solution that balances cost, commuting time, and quality of life. This trend reflects a shift in the younger generation's consumption mindset from pursuing superficial respectability to valuing resilience against uncertainties.
Detailed Analysis
1. Living in an urban village is not about being poor; it's about making a smart financial choice
Many people assume that employees of large companies should live in good housing due to their high incomes. However, the reality is that fixed expenses in big cities can be extremely costly, with rent accounting for a significant portion of their budget. For example, an employee with a monthly income of 30,000 yuan might have only about 20,000 yuan left after taxes and social security contributions. If they rent a luxury apartment for 6,000 yuan, they would have less money to save each month. By living in an urban village for 2,000 yuan, they could save 48,000 yuan per year, which could be used as a contingency fund in case of unemployment or for financial investments, or to support their parents.
A survey indicates that nearly 80% of professionals are willing to accept rent that accounts for less than 20% of their income—this is true for employees of large companies as well. They are not unable to enjoy good living conditions; rather, they fear that high rent costs could leave them financially strapped in case of unemployment. Living in an urban village means sacrificing some quality of life to increase their financial resilience.
2. Not wanting to be tied down by high rent
The biggest concern for employees of large companies is not poor housing conditions, but being trapped by high rent payments. For instance, after a salary increase, they might move into a more expensive apartment, only to have a large portion of their salary deducted for rent each month, leaving them hesitant to resign, take a break, or change careers because the rent remains constant. In urban villages, lower rent costs allow them to save several thousand yuan per month, giving them the freedom to quit their jobs without immediate financial consequences, refuse unreasonable overtime requests, or take long vacations.
Data from the Shenzhen Shell Research Institute shows that over 80% of city residents rent housing, with those under 35 years old accounting for 70%. Renting is a long-term commitment, and rent is not just about comfort; it significantly affects one's financial stability. Living in an urban village is about trading some convenience for greater freedom.
3. Location is more important than luxury; commuting time saves precious life
Many people think that urban villages are far away, but in cities like Guangzhou and Shenzhen, many of them are located in prime areas. For example, Baishi Zhou in Shenzhen is close to technology parks, Gangxia is adjacent to the Futian CBD, and Shangsha and Xiasha are near transportation hubs. The rent in these areas is 40% lower than that in luxury residential complexes, while commuting only takes a few stops on the subway or by electric bike. For employees of large companies, saving 1-2 hours per day on commuting means having more time for themselves.
In urban villages in Nanshan District, 25% of tenants have a bachelor's degree or higher, indicating that white-collar workers choose them not just because of the lower cost but also because of their proximity to work. Housing is for sleeping; commuting is a significant waste of time, so they prefer to live in smaller spaces as long as it’s closer to their workplaces.
4. The vibrant community provides a sense of balance outside of the workplace
Working at large companies often involves a highly standardized routine with meetings, OKRs, and data analysis. Urban villages offer a different reality with breakfast stalls, late-night snack shops, and kind neighbors who show concern for your well-being. This lively atmosphere helps people return to a more relaxed state of being, where they can relax and not always have to act as efficient employees.
Shenzhen has 5.4 million units in urban villages, accounting for 60% of the rental market. Such a large scale has created a complete living ecosystem where you can still enjoy late-night snacks after work or find convenient dining options without leaving home on weekends. This convenience and community support are things that residential complexes in the suburbs cannot provide.
5. The concept of respectability has changed: from “living well” to “being resilient”
In the past, young people associated respectability with living in luxury apartments and using expensive brands. Today, for employees of large companies, respectability means being able to cope with unexpected challenges. Reports show that the turnover rate has decreased in 2023, as people are seeking stability. High rent costs can undermine this stability. While living in an urban village might mean smaller and less well-lit apartments, the savings each month provide a financial cushion—enough to last for three months in case of layoffs or to support a career change.
Companies like JD.com and Tencent are building affordable housing for their employees (with rent at 60% of the surrounding market rate), indicating that housing pressures are affecting their ability to retain talent. Employees choosing urban villages are not pretending to be poor; they understand that with increased income, what really needs to improve is their freedom. Where they live is no longer a symbol of social status but reflects their ability to control their own lives.
In Conclusion
Living in an urban village is not the end goal but a temporary phase. It allows young people to stay in big cities, stay close to opportunities, and maintain flexibility. True maturity means knowing what to prioritize at each stage of life—not just spending according to income, but ensuring that one has the financial resilience to face the future.
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