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Maybe you're making the leap to move to Japan or simply planning an unforgettable Japanese holiday. Here are some crucial points for you to know to better understand about Japan's cost of living.
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.
However, since 2022, Japan's cost of living has started to rise. Meantime, the economy is getting smaller and the value of the yen is dropping This is ending 30 years of little to no change in prices.
Data | |
---|---|
Goods & Services | Price in Japanese yen (¥) |
Restaurant meal (low-end) | ¥1,000 |
Restaurant meal (mid-end) | ¥6,000 |
Milk (1 liter) | ¥300 |
White Bread (6-slices) | ¥250 |
Rice (5kg) (depends on rice region) | ¥1,500 - ¥3,000 |
Eggs (10) | ¥330 |
Chicken (1 lb) | ¥430 |
Beef (1 lb) | ¥1,140 |
Apples (1 lb) | ¥330 |
Oranges (1 lb) | ¥300 |
Tomato (1 lb) | ¥300 |
Lettuce (1 head) | ¥250 |
One-way Ticket (Local Transport) | ¥230 |
Monthly Pass (Regular Price) | ¥8,000 |
Taxi after 1 mile (Normal Tariff) | ¥685 |
Gasoline (1 gallon) | ¥660 |
Basic (Electricity, Water, Gas) | ¥25,450 |
Basic Mobile Phone + Internet | ¥9,000 |
Fitness Club (average monthly fee) | ¥8,565 |
Is Japan a cheap place to live? Well, that depends on how much money you are earning. According to the OECD, the average salary in Japan is ¥4,452,975JPY ($30,356 USD), which is below the OECD average.
The national Japanese minimum wage is set to increase to ¥1,054JPY ($7.18 USD) in late 2024. Despite recent changes, Japan's wages are 30% lower than other OECD countries. Therefore, it could really impact your cost of living in Japan if you start off working for minimum wage.
The cost of living in Japan for a single person is ¥157,175 ($1.097 USD). Although this estimate will change depending on you location and personal spending habits.
Data | |
---|---|
Utilities in Japan | Average Cost for a Single Person (2022) |
Water | ¥2,116 (around $14.60 USD) |
Electricty | ¥6,808 (around $47 USD) |
Gas | ¥3,331 (around $23 USD) |
Utility data sourced from the official statistics released by the Japanese Ministry of Internal Affairs and Communications.
Remarkably, this average Japanese salary can comfortably support a family of four. Monthly expenditure for a family of four is ¥404,034JPY ($2,818 USD).
Personally, I feel that this number is low. As any parent can tell you, the cost of raising children can vary depending on what happens that month. Most families I know living in Japan seek extra income through extra part-time work.
Data | |
---|---|
Utilities in Japan | Average Cost for a Family of Four (2022) |
Water | ¥6,196 (around $42.80 USD) |
Electricity | ¥13,948 (around $96.50 USD) |
Gas | ¥5,427 (around $37.50 USD) |
Utility data sourced from the official statistics released by the Japanese Ministry of Internal Affairs and Communications.
If you like cooking at home, monthly grocery expenses can average around ¥38,000 per person.
Japanese 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 reduce these costs [3]. For those who live in Japan, managing these costs is key to maintaining a tight budget.
Eating out can impact your cost of living in Japan. Many Japanese people eat-out regularly. This means that inexpensive dining options are available that won't break the bank.
For a detailed breakdown of renting in Japan, check out our article, Mastering Japanese Real Estate: A Guide to Renting in Japan.
Tokyo's rent is higher than other cities, starting at ¥100,000 per month for a one-room apartment. However, higher salaries in Tokyo offset these costs.
Housing represents a significant portion of living expenses in major Japanese cities. However, this is usually offset by the jobs in those cities, which come with higher salaries [2].
I will leave you with a video from youTuber "Chani in Japan". Chani is an Australian who moved to Japan. Chani records her life after buying an akiya (a Japanese abandoned house). I hope this is helpful!
1. 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.
2. 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.