Housing costs are a significant financial burden for many individuals, with location playing a crucial role in determining these expenses. In this article, we aim to explore the monthly housing costs according to a Reddit survey without adjusting for location.

Japan, known for its advanced economy and bustling cities, offers a surprisingly affordable housing market compared to other countries. This article will explore the cost of housing in Japan and how it compares to the rest of the world.
Housing Cost in Japan: Survey Says…
A recent survey on Japanese rent and mortgage payment revealed the following distribution of cost ranges:
Housing Cost Range (Yen) | Housing Cost Range (USD) | Votes | % of Total Votes |
---|---|---|---|
Nothing | N/A | 42 | 9.3% |
0–50,000 | 0-400 | 42 | 9.3% |
51,000–125,000 | 400-1,000 | 188 | 41.6% |
126,000–250,000 | 1,000-1,900 | 127 | 28.1% |
251,000–500,000 | 1,900-3,700 | 37 | 8.2% |
More than 500,000 | 3,700+ | 16 | 3.5% |
*Please note that the USD conversion is approximate, as it is rounded to the nearest 100s and uses a conversion rate of 1 USD = 135 JPY.
If we take out the 42 people that own their property outright and only look at the people paying rent or mortgage, it looks like about 56% of the people are paying less than $1,000 for housing.
Surprisingly, most people are paying between $400 and $1,900, which makes up about 77% of the people. In the U.S., you’ll likely have to live in the suburbs or rural areas for under $2,000 a month. In cities like Los Angeles, New York, and Chicago, a two-bedroom apartment typically costs around $3,500 to $6,000.
Most Expensive Cities to Live in Japan

Tokyo
Tokyo is known for its high cost of living, with the average rent for a one-bedroom apartment ranging from $950-$1,150 and a three-bedroom apartment from $2,000-$2,500. Additionally, meals and entertainment options tend to be expensive, with a bowl of ramen costing around $10 and a movie ticket costing around $18.

Osaka
Osaka is Japan’s second most expensive city, with a one-bedroom apartment costing an average of $600-$1,200 per month and a three-bedroom apartment costing an average of $1,300-$2,600 per month. Food is also pricey, with a meal at a mid-range restaurant costing around $35 and a beer costing around $6.

Yokohama
Yokohama is a coastal city near Tokyo known for its picturesque views and high cost of living. The average rent for a one-bedroom apartment in Yokohama is around $750-$1,300, and a three-bedroom apartment costs around $1,600-$2,750. Entertainment options are also quite expensive, with a movie ticket costing around $20 and a meal at a mid-range restaurant costing around $32.

Nagoya
Nagoya is one of Japan’s largest cities and is known for its manufacturing industry. A one-bedroom apartment in Nagoya costs around USD$425-$1,050 per month, and a three-bedroom apartment ranges from USD$920-$2,287 per month. Additionally, meals in Nagoya are pricey, with a meal at a mid-range restaurant costing around USD$30 and a beer costing around USD$6.
Most Affordable Cities to Live in Japan

Sapporo
Sapporo is a city in northern Japan known for its snowy winters and outdoor activities. It has a low cost of living, with the average rent for a one-bedroom apartment ranging from $400-800 per month and a three-bedroom apartment costing around $800-$1,700 per month. Meals and drinks are also affordable, with a bowl of ramen costing around $7 and a beer costing around $4.

Kyoto
Kyoto is a popular tourist destination in Japan, known for its beautiful temples, shrines, and gardens. The average rent for a one-bedroom apartment in Kyoto is around $550-$1,150 per month, and a three-bedroom apartment costs around $1,220-$2,550 per month. Food is also affordable in Kyoto, with a meal at a mid-range restaurant costing around $20 and a beer costing around $5.

Fukuoka
Fukuoka is a vibrant city in southern Japan known for its food, nightlife, and beaches. The average rent for a one-bedroom apartment in Fukuoka ranges from $400-$800 per month, and a three-bedroom apartment costs around $900-$1,700 per month. Additionally, meals and drinks are relatively cheap, with a bowl of ramen costing around $6 and a beer costing around $4.

Naha
Naha is the capital of Okinawa Prefecture, known for its beautiful beaches and tropical climate. The average rent for a one-bedroom apartment in Naha is around $400-$800 per month, and a three-bedroom apartment costs around $850-$1,700 per month. Food is also affordable, with a meal at a mid-range restaurant costing around $16 and a beer costing around $4.
Japan Rent to Income Ratio
The percentage of income spent on rent in Japan varies depending on individual circumstances and location. However, some sources suggest that spending 25-30% of one’s income on rent is considered normal. In Tokyo, rent prices can be higher, and some Japanese people may spend up to 50% or more of their paychecks on rent.
Despite the higher rent prices in urban areas, the average rent in Japan is generally more affordable than in the United States. It is essential to consider factors such as location, property size, and personal preferences when determining an appropriate percentage of income to allocate toward rent.
Rent as Percentage of Income Compared to U.S.
The typical American renter is now considered rent-burdened, as they spend 30% of the median U.S. income on average rent. In 2020, 46% of American renters spent 30% or more of their income on housing, with 23% spending at least 50% on rent. This meets the Department of Housing and Urban Development’s definition of being “cost-burdened.”
Affordability Compared to the Rest of the World

Rent in Japan is generally more affordable than in other countries, particularly when compared to the United States. For example, the average rent for a one-bedroom apartment in the U.S. is $1,100, while in Japan, it is only $510 for the same footage.
In Asia, Japan’s average monthly rent of $740 is lower than that of Singapore ($5,000) and Hong Kong ($2,100) but higher than countries like India ($300) and Indonesia ($380).
The Key to Japan’s Affordable Housing
Japan’s success in maintaining affordable housing can be attributed to its commitment to building abundant housing in compact, low-carbon neighborhoods. This approach has resulted in high vacancy rates, which have kept rents and prices low and stable.
For instance, a typical two-bedroom apartment in Tokyo has been rented for under $1,000 a month for years, about half what the same apartment would cost in Seattle.
Japan Akiya Affordable Housing Alternative Option

One option for finding more affordable housing in Japan is Akiya, which refers to vacant or abandoned houses. The number of Akiya has been increasing, particularly in rural areas, due to factors such as depopulation and aging properties.
Akiya banks are databases where owners and local governments can list these properties for sale for as little as $500, and potential buyers can search for vacant homes to purchase.
While some Akiya properties can be extremely cheap or even given away for free, it is essential to consider the potential renovation costs and the long-term commitment required. Moreover, many of these houses may be in poor condition and need extensive renovation, especially if they have been empty for a long time.
Additionally, owning an Akiya does not automatically grant residence status in Japan, and foreigners may face certain restrictions when purchasing these properties.
Before buying an Akiya, it is crucial to research the property’s condition, location, and potential renovation costs. Some local communities may offer subsidies for renovating Akiya, so it is worth inquiring about such assistance before signing any contracts.
Overall, Akiya can be an affordable housing option for those willing to invest time, effort, and money to transform these vacant properties into livable homes.
Final Thoughts
Housing affordability has become a pressing issue in many countries, including the United States, where millions of households spend more than 30% of their income on housing costs. Supply shortages, increasing demand, and low-interest rates have contributed to this affordability crisis.
In contrast, Japan has managed to maintain relatively low and stable rents and housing prices, even in densely populated cities like Tokyo.
Japan’s affordable rent prices, especially compared to other countries, make it an attractive destination for those looking to live in an advanced economy with a lower cost of living. Moreover, the country’s commitment to providing abundant housing in compact neighborhoods has played a significant role in maintaining this affordability, making Japan a prime example of a successful housing policy.