As China slows, Chengdu rises: Why young people are flocking to the nation’s ‘happiest city’

For years, the southwestern Chinese city of Chengdu was mocked for being slow, sleepy, and unserious. Its laid-back reputation stood in sharp contrast to the relentless hustle of coastal megacities like Shanghai, Shenzhen, and Guangzhou. But now, that very chill is turning into a powerful draw.

As China faces a new phase of economic unease, young people burned out by overwork and disillusioned by stalled dreams are flocking to Chengdu. The city’s population has surged by 30 percent in just five years to over 21 million, making it one of the fastest-growing urban centres in the country. It has quietly become a rare success story in a nation struggling with sluggish consumption, a property slump, and widespread job insecurity, the New York Times reported.

An antidote to hyper-competitive urban life

Chengdu offers an alternative to China’s hypercompetitive urban grind. Wages are lower than in top-tier cities, but so is the pressure—and so is the cost of living. In Chengdu, a two-bedroom apartment can rent for $400 a month. A similar space in Beijing would barely cover a single room in a shared flat.

Emma Ma, 30, left Beijing three years ago and now runs a music video studio in Chengdu. She describes a life of modest comfort and low stress, with money left over for a household helper. “I feel it doesn’t cost a lot to be happy here,” she said.

From slacker stereotype to pandemic refuge

The city’s once-mocked pace has taken on new meaning since the pandemic. Lockdowns in Shanghai and other cities made Chengdu’s steady, predictable lifestyle look suddenly attractive. “The perception of slow life has changed,” said Wang Di, a historian and Chengdu expert. He compares Chengdu’s cultural role to that of Austin, Texas—a haven for creativity, counterculture, and community.

More than pandas and teahouses

Famous for its giant pandas and teahouses, Chengdu also boasts a thriving LGBTQ+ scene, a hip-hop movement, a booming e-sports industry, and a reputation for spicy cuisine. Over 12 million people visited the Chengdu Panda Base last year alone.

But it’s not just tourism. The city has become a hub for animation, film, and gaming. “Ne Zha 2,” China’s highest-grossing animated film, was made in Chengdu. Economic activity is dominated by the service sector, making it more insulated from global trade shocks and U.S. tariffs that have hit manufacturing-heavy cities on the coast.

A real estate outlier in a cooling market

Chengdu’s real estate market is booming even as much of China’s property sector falters. Since 2021, average home prices per square meter have risen nearly 17 percent—triple the growth seen in other major cities.

That growth is being fuelled by returnees like Treasure Wu, who left Shanghai and moved back in 2020. “I have a great sense of well-being in Chengdu,” he said after buying an apartment for about $300,000—roughly a third of what a similar unit would cost in Shanghai.

Looking ahead: A city poised for more

Once a defence hub during Mao-era decentralisation efforts, Chengdu may again benefit from China’s strategic pivot. President Xi Jinping’s push for self-reliance in high-tech industries could drive more investment into inland cities like Chengdu. The city already has a strong foundation in technology and transport, and its openness to cultural diversity has helped it attract—and retain—talent.

At a time when many Chinese cities feel like engines losing steam, Chengdu is proving that happiness, not just hustle, can be a growth strategy. As property crises, job anxieties, and generational malaise haunt much of the country, this inland city may hold lessons for the future of urban China.