![Casual eating out in Japan. Photo source: Maheshwaran Shanmugam Breaking Down the Cost of Living in Japan: An Information Guide](/_next/image/?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2Fx0c10dda%2Fproduction%2Fc16e4edd2c8446e744309739e41e608c0f89d468-1280x853.jpg&w=3840&q=75)
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The post-COVID era has seen interest rates, salaries, and the cost of living in Japan and other countries soar. The cost of living in Japan has only started to rise as the country's economy shrinks and the value of the yen falls, ending 30 years of deflation . If you are considering moving to Japan in the near future, this guide is an essential read to understand the cost of living in Japan.
For those unaware, when Japan’s bubble economy (1986 - 1991) burst, the banks and the government announced a period of deflation, which meant that both prices and salaries have remained largely unchanged for the past 32 years. This was fine as long as Japan remained as the third largest economy and the yen stayed strong. Now that’s all coming to an end.
Although the consumer price index (CPI) started rising around 2014, it really took off in 2021. In fact, between 2022 and 2023, it jumped by 3.2%. Okay… But, how much does it cost to live in Japan? A rising CPI is directly related to rising inflation, prices, and salaries. Japan’s rising CPI reflects an increase in the cost of everyday goods and services across the board. is japan cheaper than us
Many of you are probably asking, is Japan cheaper than US? The answer is 'yes', Japan is cheaper than a lot of countries, including the UK, Australia, and even New Zealand. Many people who come to visit Japan are usually surprised at how cheap many things are, including food, travel, rent, house prices, and even alcohol. This is especially true since the value of yen has been falling since 2023.
Living in Japan has seen rising costs in petrol, clothing, food, and public transport, impacting the overall cost of living in Japan. As a result, wages and salaries are finally on the increase. Despite this, the increase in Japan’s cost of living is being compounded by the weak yen. If you are moving to Japan any time soon, you might want to work online earning US dollars, as you’ll find the changes in Japan’s CPI less impactful.
The figures below are estimates for monthly living in Japan and should not be used as a basis for serious financial decisions. If you are plan moving to Japan, you may to consider these figures.
Depending on where you live in Japan, monthly expenses can vary widely. I don't want to be too vague, but I want to stress that the size of a city or your proximity to public transport can make a large difference to the cost of living in Japan. How much is rent in Japan often depends on the distance from the train station to your house or apartment. The further away the station, the cheaper the rent.
The area where you live can even affect the price of groceries. I am referring to access of a variety of supermarkets that offer competitive prices.
Grocery shopping, although cheaper than it used to be, can still be relatively expensive, especially if you are purchasing a large amount of fresh fruit and vegetables and red meat (fish, chicken, and pork are all very reasonably priced).
Japan can often charge high prices for fruit, vegetables, and red meat compared to Western countries. However, it also depends on where your supermarket sources their stock. Some supermarkets will stock produce from local farmers, which can offer up to half price of other vegetable stock.
If you live near a 商店街 (shoutengai), a local shopping street found in many urban areas, you may find locally sourced produce which can positively impact your cost of living in Japan. These markets can offer much lower prices than the larger supermarkets. It really depends on what kind of markets are in your area.
When considering how much is rent in Japan, housing costs can vary widely depending on the city and type of accommodation., a crucial factor for those living in Japan or plan moving to Japan.
Comparatively, in Osaka and Kyoto, the costs are generally lower. For example, average home prices for a moderately sized apartment in central Kyoto reach approximately ¥62.2 million, while Osaka's equivalent homes are priced around ¥42.6 million [5].
In both Osaka and Kyoto, the average rent for a modest one-room apartments in Japan can cost between ¥50,000 (around US$320) and ¥80,000 (around US$514) a month. If you are looking for an apartment for two or more, rent in Japan could be anywhere from ¥80,000 to ¥130,000 a month.
Although rent in Japan is much cheaper than other countries, rent prices can become much higher in a busy city like Tokyo or its surrounding areas (like Chiba, Shinagawa, or Yokohama) [2]. However, this is usually offset by the jobs in those cities, which come with higher salaries.
In major cities across Japan, housing costs represent a significant portion of living expenses, with Tokyo standing as the most expensive. A one-room apartment in central Tokyo typically starts at about ¥100,000 per month, reflecting the high demand and limited space in Japan's bustling capital [2].
Exploring housing options in smaller regional cities can be significantly more cost-effective. For instance, it's possible to purchase a renovated 2DK (two-bedroom) bungalow with amenities like a spacious terrace garden and parking in these locales for around ¥3,000,000, inclusive of all taxes [8]. This presents a compelling alternative for those seeking a balance between affordability and quality of life outside Japan's major urban centers.
In Japan, the culinary scene offers a wide spectrum of dining and grocery-shopping options, catering to various budgets and preferences. For those inclined towards cooking at home, monthly grocery expenses average around ¥38,000 per person, with prices for fruit and vegetables typically higher than those in Europe or the US [3][4]. Opting for local Japanese products and seasonal foods can significantly reduce these costs [3]. For those who live in Japan, managing these costs is key to maintaining a budget.
Eating out in Japan can be as economical or lavish as one chooses. Inexpensive dining options include full meals at local eateries ranging from ¥500 to ¥1,500, providing a budget-friendly way to enjoy authentic Japanese cuisine [4]. A ramen set (accompanied with fried rice or gyoza) can set you back a mere ¥1,000. For quick bites, convenience stores offer an excess of options like Onigiri and Udon, with a complete meal potentially costing between 400 to 700 yen [10].
For a more specialized dining experience, prices vary significantly. A casual conveyor belt sushi meal might cost between ¥1,000 to ¥2,500 yen per person, while upscale sushi bars can charge up to ¥20,000 or more [10]. Similarly, fast food and family restaurants present affordable alternatives, with meals typically priced around ¥500 to ¥1,000 [4].
Connectivity services such as mobile phone plans and internet are essential for staying in touch and navigating daily tasks in Japan. Standard mobile plans start at ¥6,000 per month, but higher plans can set you back around ¥9,000 - ¥10,000 per month. while more economical options from discount operators can be as low as ¥2,000 [2].
Internet connectivity, a necessity for both work and leisure, is available via various means. Residents might choose between pocket Wi-Fi devices starting at ¥3,500 monthly or more robust broadband or fiber optic services beginning at ¥4,500 [2]. Whether moving to Japan or living in Japan, understanding these expenses can help you budget effectively when planning for the cost of living in Japan.
Public transportation in Japan is renowned for its efficiency and extensive network, which significantly influences the low car ownership rates, especially in metropolitan areas like Tokyo [14][16]. The system encompasses a variety of modes including trains, buses, and subways, which are meticulously timed and widely utilized for daily commuting [13]. For those living in Tokyo, the availability of such reliable public transport often negates the necessity for a personal vehicle [16]. Transportation costs, including trains, buses, and taxis, also need to be considered for anyone moving to Japan or currently living in Japan.
If you are planning on moving to Japan, you will want to think about car ownership. Owning a car in Japan involves considerable ongoing costs. The initial price of purchasing a new car averages around 3 million yen ($28,000 USD), with annual ownership costs, including maintenance, insurance, and fuel, adding up to approximately 1.5 million yen ($13,000 USD) [13]. Additionally, car owners must contend with mandatory expenses such as the biennial vehicle inspection known as 'Shaken', which can cost up to 100,000 yen ($850), and a substantial automobile tax [14] [17].
Healthcare in Japan is known for its high quality and affordability, with mandatory health insurance covering most medical expenses. This is a significant advantage for those who move to Japan. Japan's healthcare system requires all residents, including foreign nationals living in Japan for more than three months, to enroll in either public or private health insurance, ensuring coverage for a majority of medical expenses [19] [20].
The National Health Insurance typically covers 70% of medical costs, with the individual responsible for the remaining 30% [19]. However, certain conditions like mental healthcare and birth-related expenses are not covered under the national scheme, instead, expectant mothers receive maternity vouchers to offset some costs [20].
Education expenses for those with children can also be a substantial part of the budget, making it an important consideration for families moving to Japan. Public education costs ranging from ¥165,126 for kindergarten to ¥512,971 for high school annually [4].
Higher education, particularly medical training, is even more costly; tuition for a School of Medicine can exceed ¥2,500,000 per year, alongside other fees for practical training and facilities development [18]. The government's decreasing subsidies to national universities, falling by 1% annually since 2004, place a larger financial burden on households, which bear over half the cost of higher education [18].
1. What are the typical living expenses for Indian students in Japan?
The monthly cost of living for Indian students in Japan typically ranges from YEN 150,000 to YEN 200,000 (approximately INR 84,315 to INR 112,420), excluding rent. These expenses vary based on individual spending habits and lifestyle.
2. What income is considered sufficient for a comfortable life in Japan?
A comfortable lifestyle in Japan can generally be maintained with a monthly income of ¥300,000 to ¥500,000 or more. This amount can vary significantly depending on factors such as location, lifestyle choices, family size, and personal spending habits.
3. Is the cost of living in Japan lower than in the United States?
Yes, living in Japan is generally cheaper than in the United States. The average monthly cost for a single person in Japan is about $1,200, while it's approximately $2,213 in the U.S. For families, the average monthly cost in Japan is around $3,051, compared to $5,003 in the U.S.
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With over 30 years of experience in Japanese culture and lifestyle, I am a permanent resident of Japan. As a web developer, I built Romancing Japan from scratch. Although originally from Australia, I have dedicated a significant part of my professional career to teaching at Japanese universities. My extensive travels across Japan have given me intimate knowledge of life in this country, and I am excited to share these insights with you.