The cost of living in Japan has a reputation for being exorbitantly high, but it's important to remember that Japanese salaries are also lucrative. This makes it entirely possible to live a good life in Japan without breaking the bank. The average Japanese standard of living ranks among the best in the world.
The vast majority of Japan's expats live in Tokyo, Osaka, or Nagoya, the three largest urban areas. Tokyo is by far the most expensive Japanese city, ranking 49th in Mercer's Cost of Living Survey for 2024. Osaka ranked 146th, while Nagoya and Yokohama ranked 154th and 161st out of 226 expat destinations surveyed.
Cost of accommodation in Japan
The most significant expense an expat will have in Japan is accommodation. The housing market offers a wide range of options, from apartments in high-rise buildings to traditional Japanese houses.
In urban centres like Tokyo and Osaka, apartments are the most common housing type. They range from compact single-room units, often called studio apartments, to larger, multiple-bedroom options. Expats should keep in mind that space is at a premium in these cities, and even smaller spaces can come with a hefty price tag.
On the outskirts and in less densely populated areas, you may find detached houses, frequently featuring traditional Japanese architectural elements. Prices here can be more affordable. No matter the location or housing type, competition is fierce in the housing market, so it's advisable to start the housing hunt well in advance.
Cost of transport in Japan
While public transport in Japan is expensive compared to other Asian countries, its efficiency and convenience are unparalleled, making it the easiest way to navigate the country. Japan's train system is extensive, punctual and of excellent quality, with the Shinkansen, or bullet train, connecting major cities at remarkable speeds. In urban areas, metro systems are the primary mode of transport, offering affordable and frequent service. Buses fill in the gaps and provide connectivity in areas not served by trains.
Most expats opt not to purchase a vehicle, as driving in bustling Japanese cities tends to be more hassle than it's worth, with steep costs associated with parking, tolls and fuel. Instead, bicycles are popular for short-distance travel, providing a cost-effective and environmentally friendly alternative.
Cost of food and groceries in Japan
Thanks to fierce competition between restaurants, it's easy to find good deals on meals in Japan. Eating out can even be cheaper than cooking at home if you don't mind a frequent diet of noodles. It's also worthwhile to check out the basement floors of most department stores, where there are food courts selling goods at highly reasonable prices.
Japan is a haven for food enthusiasts, offering everything from sushi bars and traditional tea houses to international fast food and street stalls and catering to all tastes and budgets. The absence of a tipping culture in Japan can also make dining out more affordable than in other countries. Japan's convenience stores also offer a surprisingly diverse selection of affordable, ready-to-eat meals, making them a fantastic option for a quick, cheap bite.
While vegetables and fruit might seem rather expensive initially, you should remember that they are always top quality, fresh and usually locally grown. Seafood is relatively cheap, and most supermarkets offer evening discounts to get rid of that day's stock (fresh foods are rarely kept for sale the next day).
Cost of entertainment and nightlife in Japan
Japan's entertainment spectrum spans from traditional theatres and sumo matches to modern cinemas, nightclubs, and amusement parks. With careful planning, you can access these affordably, using discounts or drink-inclusive cover charges.
Japan also hosts numerous cultural festivals throughout the year, which are often free. These events, featuring traditional music, dance and food, offer a cost-effective and unique opportunity to appreciate Japan's rich cultural heritage.
Izakayas, Japanese-style pubs, offer affordable options and are favoured by locals and expats alike. They regularly have nomihoudai (all-you-can-drink) and tabehoudai (all-you-can-eat) deals, which can be an economical way to enjoy a night out.
Cost of education in Japan
If you're relocating to Japan with children, you must factor in the cost of schooling. Most foreigners send their children to international schools that follow a non-Japanese curriculum, typically that of the expat family's home country.
International school fees in Japan can be pricey, but these schools also usually have excellent facilities and teaching standards. Parents should also note that extra costs, such as uniforms, stationery and field trips, frequently aren't included in the tuition fees, so parents will need to account for these as well.
Cost of healthcare in Japan
Japan has universal public healthcare. All Japanese citizens have public health insurance, while companies must often also provide additional insurance to their employees. This means that, for expats, healthcare costs can be relatively low. In some cases, private care and insurance are necessary, such as for those staying in Japan for the short term.
The standard of care in both public and private hospitals is high, as Japan's healthcare system is one of the best in the world. Researching the different public and private options available is still a good idea.
Cost of living in Japan chart
Note that prices may vary depending on the product and service provider. The list below shows the average prices for Tokyo in July 2024.
Accommodation (monthly rent) | |
Three-bedroom apartment in the city centre | JPY 450,000 |
Three-bedroom apartment outside the city centre | JPY 197,500 |
One-bedroom apartment in the city centre | JPY 169,500 |
One-bedroom apartment outside the city centre | JPY 97,500 |
Food and drink | |
Dozen eggs | JPY 345 |
Milk (1 litre) | JPY 230 |
Rice (1kg) | JPY 585 |
Loaf of white bread | JPY 265 |
Chicken breasts (1kg) | JPY 545 |
Pack of cigarettes (Marlboro) | JPY 615 |
Eating out | |
Three-course meal for two at a mid-range restaurant | JPY 7,100 |
Big Mac Meal | JPY 820 |
Coca-Cola (330ml) | JPY 180 |
Cappuccino | JPY 525 |
Bottle of beer (local) | JPY 335 |
Utilities/household | |
Mobile call rate (per minute – mobile to mobile) | JPY 55 |
Internet (uncapped ADSL or cable – average per month) | JPY 4,850 |
Basic utilities (average per month for a standard household) | JPY 22,500 |
Transportation | |
Taxi rate/km | JPY 455 |
City-centre public transport fare | JPY 230 |
Gasoline/Petrol (per litre) | JPY 170 |
What do expats say about the cost of living in Japan?
"In general, Japan is more expensive compared to my home country. Food, groceries, clothes, public transportation. When my parents visited us here they were quite shocked when they saw the prices in a supermarket or restaurant." Read Sania's expat interview for more.
"Without a base reference, you actually don't know what is expensive and what is good value. It takes time to learn this, but after a while your cost of living comes down." Read more about the cost of living in our interview with Jonathan, a British expat.
Further reading
►For more about money matters, read Banking, Money and Taxes in Japan
►Transport and Driving in Japan provides an overview of transport options for expats in Japan
Are you an expat living in Japan?
Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to Japan. Please contact us if you'd like to contribute.
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