![Casual eating out in Japan. Photo source: Maheshwaran Shanmugam The 2024 Guide to the Cost of Living in Japan](/_next/image/?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2Fx0c10dda%2Fproduction%2Fc16e4edd2c8446e744309739e41e608c0f89d468-1280x853.jpg&w=3840&q=75)
After COVID-19, interest rates, salaries, and the cost of living in Japan and other countries have gone up a lot. In Japan, the cost of living has started to rise because the economy is getting smaller and the value of the yen is dropping, ending 30 years of falling prices. If you are thinking about moving to Japan soon, this guide is important to read so you can understand the cost of living there.
Although Japan's consumer price index (CPI) started going up around 2014, it really increased a lot in 2021. Between 2022 and 2023, it went up by 3.2%. A rising CPI means that inflation, prices, and salaries are also going up. Japan’s rising CPI shows that the cost of everyday things and services is increasing. Even though the cost of living in Japan is still lower than in many Western countries, it is getting more expensive.
Many of you are probably asking, is Japan cheaper than the US? The answer is 'yes'. In fact, 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.
The average salary in Japan in 2024 is 6,200,000 Japanese Yen (JPY). 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.
Is Japan a cheap place to live? Well, that depends on your situation. According to the OECD, the average salary in Japan is ¥4,452,975JPY, which is below the OECD average. However, this average Japanese salary can support a family of four. Monthly expenditure for a family of four (minus rent) is ¥280,000JPY.
Personally, I feel that this number is low. As any parent can tell you, the cost of raising children can vary wildly depending on what happens that month. Most families I know living in Japan seek extra income through extra part-time work.
The cost of living in Japan for a single person (minus rent) is about ¥100,000. Although this estimate will vary wildly depending on where you live and your personal habits. Also, keep in mind that many young single people will start off at a company earning a very low salary. I can tell you from personal experience in my twenties, I used to live on a salary of 3,000,000JPY in Kyoto.
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. Tokyo jobs can offer much higher salaries than jobs in other cities, but this is largely related to a higher cost of living in Tokyo.
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.
The average rent in Japan is 61,367JPY monthly. The average salary in Japan for 2024 is 6,200,000 yen per year. This means that on average, rent only takes up about 11.88% of your yearly income. However, the rent prices can vary depending on where you live in Japan.
Although rent in Japan is comparatively lower than Western countries, initial costs that are usually included when moving into a new place (this includes 'key money', 'security money', etc) can be very expensive. These additional costs can sometimes equal up to five or six times the monthly rent.
If you are looking for a more detailed article that breaks down and explains rent in Japan, then check out our article, Mastering Japanese Real Estate: A Guide to Renting in 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 small one-room apartment in Japan can cost between 50,000 yen (about $320) and 80,000 yen (about $514) a month. If you need an apartment for two or more people, the rent could be anywhere from 80,000 yen to 130,000 yen 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.
Japan offers a wide range of dining and grocery-shopping options, catering to various budgets and preferences. For those inclined towards cooking at home, monthly grocery expenses can 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 tight budget.
Generally speaking, Japanese kitchens are very small and it can inspire some to eat-out often. In fact, many Japanese people eat-out regularly, which means that inexpensive dining options are available that won't negatively impact on your cost of living.
This includes 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].
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.