How Expensive Is It to Live in Tokyo?

The cost of living in Tokyo, Japan, varies significantly depending on whether you opt for a traditional Japanese-style house or a Western-style apartment. If you choose a Japanese-style house and sleep on futons, you might find it to be approximately half of what you would pay in an American city. On the other hand, a Western-style house or apartment will likely cost around double.

Living Affordably in Tokyo

The phrase 'How long is a piece of string?' aptly describes the variability of living expenses in Tokyo. It depends largely on your salary and your personal spending habits. Tokyo is not necessarily “expensive” for everyone, especially if you avoid high-end neighborhoods and luxurious lifestyle choices. Frugality and careful budgeting can significantly lower your living costs in Japan.

For those from Europe or America, the cost of living in Tokyo is surprisingly cheaper when considering the current currency exchange rates. Most things in Tokyo are approximately one-third of what they would cost in your home country. This affordability can make a significant difference in your financial planning as an expat.

Living Cost: Rent and Food

Rent:
A common living expense for expats in Tokyo is housing rent. Prices for apartments can vary widely depending on your proximity to the Tokyo metropolitan area and your desired neighborhood. For foreigners, finding an apartment is often more challenging. Some rentals may have a strict no overdue payments policy. For instance, if you have three months' rent past due, it can be difficult to find a landlord willing to work with you.

As a foreigner, you can sometimes avoid paying all overdue rent by moving back to your country and staying abroad. Practically, if your current landlords do not report you, you might get away with it. However, you can be tracked down if you return to Japan. For locals, if you move to another prefecture or city, you can be tracked easily. Thus, if you do not have the financial means to pay even a few months of rent, staying abroad for an extended period might not be a viable option.

A large portion of foreigner-friendly rentals can be found in the Okubo area near Shinjuku, a popular hub for expatriates. This area is home to distinct neighborhoods such as "India Town" and "Korean Town." You might find an excellent deal in these areas, but the living conditions should be considered before making a decision.

A typical deposit and advanced payment for an apartment in the Okubo area might be around 20,000 JPY, with fire insurance costing about 1/2 month. The rent for an apartment there can range around 60,000 JPY per month, though this amount can vary.

I had lived in Okubo for six months but had to move due to disruptive neighbors. Most unfurnished apartments come with a bed and a fridge, and an air conditioner for both heating and cooling needs. The initial cost of furnishing an unfurnished apartment might be higher.

Personal Experience

Living in Southern Tokyo near Kawasaki, I have a tiny apartment that costs 55,000 JPY per month. Being a dual citizen of Japan and the US, I have firsthand experience with the cost of living differences. My expenses include:

Around 18,000 JPY for electricity, which is about 400 kWh per month. A budget of approximately 130,000 JPY per month, including 1 GB of fiber optic internet, water (4000–6000 JPY every two months), and a diet of mostly home-cooked meals.

By cooking virtually all my meals and minimizing eating out, I have managed to keep my monthly expenses low. Fully furnished apartments might be more expensive, but they offer the convenience of ready-to-move-in comfort, with additional initial costs for beds, refrigerators, and gas/electric stoves.

Conclusion

Tokyo offers a mix of affordability and luxury, much like any major city. Whether you opt for traditional living or prefer modern conveniences, careful planning and budgeting can help you navigate the cost of living in this vibrant metropolis. By staying informed about the nuances of the local market, you can make the most of your expat experience in Tokyo.