Is living in Tokyo expensive? It depends on where and how you live. Based on Japanese apartment listings like our very own GaijinPot Apartments, Japanese sites like Suumo and AI-powered real estate analytics, the average monthly rent for a studio apartment in Tokyo is around ¥95,000, while family-sized apartments can run upwards of ¥190,000.
That might not sound outrageous at first, but with average annual salaries in Japan hovering around ¥4.6 million, rent still eats up a significant portion of most people’s income.
Everyone wants to live in Tokyo, but not everyone can afford a high-rise apartment in Shibuya, and not everyone is willing to commute from the inaka (countryside). To help you get the most out of your rent money, let’s go through the average cost for different neighborhoods in Tokyo and some tips for finding the right place to live—for the right price.
Is Tokyo expensive?
Tokyo is no longer among the world’s priciest cities for expats. According to Mercer’s 2024 Cost of Living Survey, it now ranks 49th globally, a significant drop from its earlier top 10 positions. That said, your cost of living still depends heavily on where in Tokyo you live and what kind of lifestyle you maintain.
For example, the average annual salary for someone in their late 20s in Tokyo is around ¥3.6 million before taxes. If you follow the standard advice of spending no more than 30% of your income on rent, that gives you about ¥90,000 per month for housing. However, most landlords in Japan will only rent to you if your income is at least three times the monthly rent, so keep that in mind when budgeting.
And remember, Tokyo is vast. It has 23 central wards, 39 additional municipalities, and even a handful of islands. Rent varies wildly depending on location. If you’re flexible with space and commute time, you can find far more affordable options, especially through services like the GaijinPot Housing Service, which lets you pay by credit card and skips the usual guarantor requirements.
Average Cost By Ward
Here is a quick look at the average price for each ward in 2025, according to Suumo, one of Japan’s biggest real estate websites.
Note: monthly rent prices are indicated before utilities and other maintenance costs.
Upfront Costs of Renting a Japanese Apartment
Renting an apartment in Japan involves several upfront costs. Some of these upfront costs are tied to Japanese culture, so it’s important to know what you’ll be paying for.
Maintenance Fee
Some buildings require an additional maintenance fee (管理費, kanri hi) for common areas in addition to monthly rent (E.g., elevators, entrances, etc). It’s usually an additional ¥10,000 to your monthly expenses (not including gas, water or electricity).
Security Deposit
A security deposit (敷金, shiki kin) is meant to repair any damage found at the end of your stay. Sometimes, it’s used when you prematurely end your apartment contract or can’t pay your rent. This is usually equivalent to one month’s rent.
Advance Rent
The 前家賃 (mae yachin) is expected to be paid before moving in, hence the “mae” (before). It is typically one or two months’ rent.
Key Money
Key money (礼金, reikin) was once a common practice due to the aftermath of World War II, when housing was hard to come by. This fee goes directly to your landlord as a sign of gratitude and goodwill for having them rent out their apartment to you. It’s non-refundable, but nowadays, it isn’t as common. Still helps to stay prepared, though.
Guarantor Fee
Typically, the guarantor fee, known as “保証会社費用” (hoshou gaisha hiyou) in Japanese, ranges from half to a whole month’s rent. This fee is paid to an agency that will act as your backer if you can’t pay your rent. Sometimes, you can ask a Japanese national to be your guarantor.
Agency Commission
Going through a real estate agency is the best way to negotiate rent, find “foreigner-friendly” apartments and have the paperwork go smoothly. However, you will need to pay the agency commission (仲介手数料, chuukai tesuuryou). This is typically one month’s rent.
Which Ward Should I Live In?
Which do you prioritize more: budget, space or commute time?
While many of us would prefer a large home to stretch out our legs, some would willingly give it up for a 30-minute commute to work, even if it costs more than 30 percent of our salary.
If you work in the outer wards, such as Nerima-ku (ward), you can find a lovely home within the ward without spending more than 25 percent of your salary, and you won’t have to commute very far. Then you can travel to the more exciting wards, such as Shibuya, on your days off.
You may have to spend more than 30 percent of your salary for as little as 25 square meters.
If you want to live and work in the more expensive wards, you may have to spend more than 30 percent of your salary for as little as 25 square meters, depending on the apartment’s age and distance from the nearest station. But if a quick and stress-free commute is more important to you, plus easy access to downtown Tokyo, go for it.
Living further away from a train station will also save you money. Prices drop once apartments are more than 10 minutes away from a station.
Can I Afford Central Tokyo?
Central Tokyo has the highest rent prices. Like any other city, you must pay a premium to live downtown. It is, after all, the heart of Japanese business, politics and bureaucracy.
Tokyo’s central wards are:
Minato-ku, home to most big-name companies and embassies, as well as a foreigner-favorite Roppongi, is the most expensive place to live in Tokyo. Chiyoda-ku, where you’ll find the Imperial Palace, is a close second. And if you dream of living close to shopping and entertainment meccas like Shibuya and Ginza in Chuo-ku, you better be prepared to lay down a lot of cash.
Central Tokyo is a Good Middle Ground
Meguro-ku lies right alongside Shibuya-ku. Don’t get us wrong—it is still pretty expensive. However, it has slowly matured into one of Tokyo’s most cultured and trendy wards. Search along the popular Toyoko train line, and you’ll find 1DK apartments for around ¥90,000 that offer convenient access to Shibuya-ku and Minato-ku through the Hibiya line.
The Oimachi line is another excellent line that runs through Shinagawa-ku and Meguro-ku and offers convenient transfers to greater Tokyo. Still, it’s close enough to affordable Ota-ku and Setagaya-ku, where the average price of 1K is around ¥80,000.
- If your goal is Shinjuku-ku, consider neighboring Toshima-ku and crazy cheap Nakano-ku.
- If your goal is Chiyoda-ku, search around Bunkyo-ku and Taito-ku.
- If you want to live or work in Chuo-ku or the Bay Area, try Koto-ku and Sumida-ku.
- If Minato-ku or Shibuya-ku is your jam, try Ota-ku and Setagaya-ku.
Of course, these are options if you want to live close enough to central Tokyo without feeling pressured.
What are the cheapest wards in Tokyo?
Generally, the farther out you go, the cheaper the apartments will be. The eastern- and northern-most outer-lying wards are the most budget-friendly wards in Tokyo:
Spending around ¥100,000 can score a sizeable 1LDK apartment of at least 40m. You’ll feel like an absolute king living in that space compared to what you’ll find closer to central Tokyo. Moreover, they might even be modern, brand-new homes. If the apartment is older than your parents, you’ll only find that kind of space for anything near that price in central Tokyo. It all depends on your priorities.
Outside The 23 Wards
If you want to save money, you could consider living outside the 23 wards. If you choose a reliable train line and a large station, there’s not much difference in lifestyle. For example, a train to Shimbashi station from Wako City, just over the border in Saitama Prefecture, takes 40 minutes. It’s on both the Yurakucho and Fukutoshin subway lines. You can explore Greater Tokyo’s many train lines here.
Ready to move in? Be sure to read what you need to rent an apartment in Japan. Sharehouses are also an increasingly popular option, with some interesting options like social apartments that offer a luxury living experience for a fraction of the cost. You can read more about finding an apartment in Japan in our Japan 101: Moving In and Moving Out section. Good luck!
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