How Much Does It Cost for a Family of Four to Live in Tokyo?
What’s new: Even after the Bank of Japan's recent policy shift to tightening credit, albeit only slightly, the value of the Japanese yen remains relatively weak against the U.S. dollar, euro, British pound and other major currencies.
Why it matters: For decades, Japan - and Tokyo in particular - had a reputation as one of the world's most expensive places to live, but since the recent rapid depreciation of the yen, the tables have turned. Japan is now a relative bargain. Rather than just a short trip, you may want to consider moving to Japan for a longer period of time. You could start with the soon to be announced digital nomad visa. See “Attention Global ‘Techpats’ - Japan to Open Doors with New Digital Nomad Visa” for more information. Especially if the yen remains depressed for the foreseeable future, it might make sense to stay even longer-like me, a permanent resident.
By the numbers: Tokyo, Japan's most expensive city, is currently a good deal. According to the online cost-of-living index Numbeo, assuming a monthly budget of 650,000 yen (about US$4,300) per month for a family of four in Tokyo, you would need to spend the following in each of these cities to maintain the same standard of living (assuming you rent in each city):
vs. London: 1,163,650 yen ($7,700)
vs. New York: 1,551,000 yen ($10,250)
vs. Paris: 930,800 yen ($6,200)
vs. Sydney: 1,027,900 yen ($6,800)
vs. Shanghai: 545,377 yen ($3,600) —> Relative bargain!
vs. Seoul: 771,431 yen ($5,100)
vs. Singapore: 1,177,654 yen ($7,770)
These assumptions are based on the following average monthly net earnings (after-tax take-home pay) per earner in a two-earner family:
Tokyo (base): 417,000 yen ($2,800)
London: 609,000 yen ($4,000)
New York: 889,000 yen ($5,900)
Paris: 467,000 yen ($3,100)
Sydney: 581,000 yen ($3,800)
Shanghai: 223,200 yen ($1,473) —> Low! Would be tight…
Seoul: 462,200 yen ($3,050)
Singapore: 703,800 yen ($4,650)
Go deeper: Of course, it is always a good idea to triangulate available facts whenever possible. In addition to Numbeo, another similarly reliable online resource is Expatistan, which also tracks a wide range of prices in different cities around the world.
Housing expenses are typically the largest expense for most people and include rent or mortgage payments, property taxes, utilities (electricity, gas, water, and garbage collection), and homeowner's insurance (if applicable).
Rent: First, the old saying about real estate, "location, location, location" is certainly true and will have an outsized impact on the cost of a particular property. The available size of detached houses and apartments in the central districts of Tokyo can be quite small, especially if you are on a budget. When we say "small," we are talking about an apartment that may be no more than 80 square meters (approximately 860 square feet), which may be much less space than you are used to. A 200 square meter (2,150 square feet)) apartment would come at a considerable premium.
However, apartments in Tokyo are now generally considered to be less expensive to rent than in London, New York, Paris and Singapore. Sydney, Shanghai and Seoul can vary depending on the location, but overall can be slightly more expensive than Tokyo.
Assuming a monthly budget of 390,000 yen (about US$2,600) for a 3-bedroom apartment in central Tokyo, you would need to spend more in each of the following cities to rent an equivalent apartment:
vs. London: 803,000 yen ($5,300)
vs. New York: 1,242,000 yen ($8,200)
vs. Paris: 503,000 yen ($3,300)
vs. Sydney: 669,000 yen ($4,400)
vs. Shanghai: 427,400 yen ($2,800)
vs. Seoul: 406,900 yen ($2,700)
vs. Singapore: 800,000 yen ($5,300)
Condominium Purchase Price: Assuming a mansion (マンション), the Japanese word for condominium, costs 1,150,000 yen (about $7,600) per square meter in the central part of Tokyo, you would need to spend more money in each of the following cities to buy a similar apartment (pricing per square meter):
vs. London: 2,634,750 yen ($17,400)
vs. New York: 2,558,500 yen ($16,900)
vs. Paris: 1,957,700 yen ($12,900)
vs. Sydney: 2,480,500 yen ($16,400)
vs. Shanghai: 2,622,000 yen ($17,300) —> Almost as much as London!
vs. Seoul: 2,902,300 yen ($19,200) —> Sky high!
vs. Singapore: 3,058,675 yen ($20,200) —> Fuhgeddaboudit!
Thus, assuming an 80 square meter (860 square feet)) condominium, the sales price would compare as follows:
Tokyo (Base): 92 million yen ($607,000)
London: 211 million yen ($1.39 million)
New York: 205 million yen ($1.35 million)
Paris: 157 million yen ($1.04 million)
Sydney: 198 million yen ($1.31 million)
Shanghai: 210 million yen ($1.39 million)
Seoul: 232 million yen ($1.53 million) —> Ouch!
Singapore: 245 million yen ($1.62 million) —> Really fuhgeddaboudit!
Mortgage Payments: Given the relatively low interest rates available for home purchases in Japan (e.g., 1.65% for a 20-year fixed-rate mortgage), mortgage payments will generally be significantly lower, even for properties in Tokyo.
Property Taxes: While rates can vary depending on effective tax rates and assessed property values, in general, Shanghai, Seoul, and Singapore tend to have the lowest property tax rates among these cities. Tokyo, Sydney and Paris generally fall in the middle range. New York and London tend to have the highest property tax rates.
Utilities: While there are a few exceptions to the rule, Tokyo remains a relative bargain for the time being.
Basic: Assuming 27,800 yen ($184) per month to cover the cost of electricity, heating, cooling, water and garbage collection for an 85 square meter apartment in Tokyo, you would need to spend the following amounts for the same services:
vs. London: 53,700 yen ($355)
vs. New York: 25,400 yen ($168) —> Curiously, a relative bargain!
vs. Paris: 33,900 yen ($224)
vs. Sydney: 32,100 yen ($212)
vs. Shanghai: 9,450 yen ($62) —> Rock bottom!
vs. Seoul: 26,800 yen ($177)
vs. Singapore: 23,000 yen ($152)
Mobile Telephone: Assuming 3,890 yen ($26) per month to cover the cost of a routine monthly plan with calls and 10GB+ of data in Tokyo, you would need to spend the following amounts for the same package:
vs. London: 2,900 yen ($19) —> Curiously, a relative bargain!
vs. New York: 9,300 yen ($61)
vs. Paris: 3,000 yen ($20)
vs. Sydney: 4,000 yen ($26)
vs. Shanghai: 2,030 yen ($13) —> Low!
vs. Seoul: 6,860 yen ($45)
vs. Singapore: 2,690 yen ($18)
Internet: Assuming 4,900 yen ($32) per month to cover the cost of a routine monthly plan for 60 Mbps or more, unlimited data, cable/ADSL in Tokyo, you would need to spend the following amounts for the same package:
vs. London: 6,000 yen ($40)
vs. New York: 10,600 yen ($70)
vs. Paris: 5,000 yen ($33)
vs. Sydney: 8,300 yen ($55)
vs. Shanghai: 2,800 yen ($18) —> Low!
vs. Seoul: 3,700 yen ($24)
vs. Singapore: 5,240 yen ($35)
Fire Insurance, etc: These costs are highly dependent on location and many other factors, making it difficult to make accurate comparisons. In Japan, fire insurance (sometimes called homeowner's insurance) is mandatory throughout the country. While earthquake insurance is an optional rider to such policies, it is generally a good idea to purchase this inexpensive additional coverage.
As the old saying goes, "you gotta eat." Right now, Tokyo foodies are feeling no pain!
Groceries: By examining the prices of a few representative items, it is clear that Tokyo is relatively inexpensive.
Bread: Assuming 265 yen ($1.75) for a 500 gram loaf of fresh white bread in Tokyo, you would need to spend the following:
vs. London: 292 yen ($1.93)
vs. New York: 715 yen ($4.73) —> Crazy!
vs. Paris: 298 yen ($1.97)
vs. Sydney: 428 yen ($2.83)
vs. Shanghai: 295 yen ($1.95)
vs. Seoul: 468 yen ($3.09) —> Maybe better off with rice…
vs. Singapore: 315 yen ($2.08)
Chicken: Assuming 1,037 yen ($6.85) for a 1 kg fillet of chicken in Tokyo, you would need to spend the following:
vs. London: 1,461 yen ($9.65)
vs. New York: 2,453 yen ($16.20) —> Crazy!
vs. Paris: 2,360 yen ($15.59)
vs. Sydney: 1,285 yen ($8.49)
vs. Shanghai: 567 yen ($3.74) —> What a bargain!
vs. Seoul: 1,575 yen ($10.39)
vs. Singapore: 1,560 yen ($10.29)
Potatoes: Assuming 440 yen ($2.91) for a 1 kg bag of potatoes in Tokyo, you would need to spend the following:
vs. London: 232 yen ($1.53) —> Curiously, a relative bargain!
vs. New York: 644 yen ($4.25)
vs. Paris: 360 yen ($2.38)
vs. Sydney: 373 yen ($2.46)
vs. Shanghai: 145 yen ($0.96) —> What a bargain!
vs. Seoul: 644 yen ($4.25)
vs. Singapore: 340 yen ($2.24)
Eating out: Assuming a 7,500 yen (about US$50) three-course lunch or dinner for two people at a mid-range restaurant in Tokyo, you would need to spend more money in most of the following cities to purchase a similar meal:
vs. London: 15,300 yen ($101)
vs. New York: 19,700 yen ($130)
vs. Paris: 11,500 yen ($76)
vs. Sydney: 12,800 yen ($85)
vs. Shanghai: 5,240 yen ($35) —> What a bargain!
vs. Seoul: 7,333 yen ($48)
vs. Singapore: 11,256 yen ($74)
This covers the cost of getting around, including public transportation, car-related expenses, and gas.
Public Transportation: Assuming a 200 yen ($1.32) one-way subway ticket in Tokyo, you would need to spend more money in most of the following cities to travel the same distance by public transportation:
vs. London: 534 yen ($3.53)
vs. New York: 439 yen ($2.90)
vs. Paris: 344 yen ($2.27)
vs. Sydney: 493 yen ($3.26)
vs. Shanghai: 84 yen ($0.55) —> What a bargain!
vs. Seoul: 161 yen ($1.06)
vs. Singapore: 225 yen ($1.48)
Tokyo's extensive subway network is often not only the fastest way to get around the city, but it is also much less expensive than the cost of riding the metro, the tube, or other underground rail network in many of the major cities around the world—except in Shanghai and Seoul.
Car-related Expenses: Owning and operating a car in any of these major cities is essentially a discretionary expense, as public transportation is a much cheaper option for getting around town. Singapore is in a league of its own!
Purchasing a New Car: Assuming 2,407,000 yen ($15,900) for a new Toyota Corolla sedan in Tokyo, you would need to spend the following to purchase an equivalent vehicle:
vs. London: 5,008,000 yen ($33,000) —> Crazy!
vs. New York: 3,917,000 yen ($25,900)
vs. Paris: 4,874,000 yen ($32,200)
vs. Sydney: 3,356,000 yen ($22,200)
vs. Shanghai: 2,760,300 yen ($18,200)
vs. Seoul: 3,824,000 yen ($25,200)
vs. Singapore: 17,885,800 yen ($118,000) —> Mainly due to high taxes and congestion pricing!
Gasoline: Assuming 173 yen ($1.14) for a liter of gasoline in Tokyo, you would need to spend the following to fill up your tank:
vs. London: 288 yen ($1.90)
vs. New York: 153 yen ($1.01) —> It helps to be world’s largest producer of oil!
vs. Paris: 309 yen ($2.04)
vs. Sydney: 204 yen ($1.35)
vs. Shanghai: 178 yen ($1.17)
vs. Seoul: 190 yen ($1.25)
vs. Singapore: 321 yen ($2.12) —> Crazy!
By the way, for all those Americans who are used to calculating the price of gasoline in gallons, the equivalent price of a gallon of gasoline is as follows:
Tokyo (base): 655 yen ($4.33)
London: 1,090 yen ($7.20)
New York: 153 yen ($3.82)
Paris: 1,170 yen ($7.73) —> Probably not too many SUVs on the road here!
Sydney: 772 yen ($5.10)
Shanghai: 673 yen ($4.44)
Seoul: 719 yen ($4.74)
Singapore: 1,215 yen ($8.02) —> Just take the subway or walk!
The cost of used cars offers even more value in Japan. Car insurance also tends to be inexpensive in Japan. While the cost of parking may be free or negligible in rural Japan, it can really add up in central Tokyo. Also, don't forget that when you buy a car in Japan, you must prove to the police that you have a place to park your new vehicle. Finally, highway tolls in Japan tend to be very high - especially compared to the "freeways" of California. However, the highway authorities tend to keep Japan's roads in very good condition thanks to routine maintenance. Thus, you get what you pay for!
Taxis and Ride-Share: Assuming an initial cab fare of 500 yen ($3.30), which increases after a certain incremental distance, in Tokyo, you would need to spend more money just to get into a taxi in each of the following cities:
vs. London: 763 yen ($5.04)
vs. New York: 756 yen ($4.99)
vs. Paris: 1,023 yen ($6.76) —> Crazy!
vs. Sydney: 790 yen ($5.22)
vs. Shanghai: 335 yen ($2.21) —> Relative bargain!
vs. Seoul: 542 yen ($3.58)
vs. Singapore: 478 yen ($3.15)
Uber and other ride-sharing services tend to charge a premium in Tokyo, due to regulatory restrictions and an apparent strategy to pursue passengers who want a value-added experience rather than just an economical way to get from point A to point B.
Alternative, Low-Cost Options: No joke-if you really want to save money (and stay in shape), why not just walk or ride a bike? It won't cost you a thing! Scooter rental is, moreover, now an option in most major cities in Japan, and it’s cheap.
Thanks in large part to the country's mandatory national health insurance program, which even covers dental care, managing healthcare costs in Japan is a relative bargain.
The United States has by far the highest healthcare costs compared to elsewhere. Most of the other countries in our comparison analysis have universal healthcare systems funded by taxes or social security contributions.
In the U.K, however, wait times for non-emergency care can be long. In Australia there may be more out-of-pocket expenses than elsewhere. Singapore’s system can be expensive for foreigners.
In Japan, co-payments for medical procedures depend on several factors:
Patient Age: Co-pay rates vary depending on your age group.
Children (under 6): Typically have the lowest co-pay rate, around 30%.
Adults (18-69): Standard co-pay rate is 30%.
Elderly (70+): Co-pay rates can be 10% or 20% depending on when you turn 70 and your income level.
High-Cost Medical Care Benefits: Japan has a system to help people cope with high medical bills. If your out-of-pocket expenses exceed a certain amount per month, the government will pay a portion through the High-Cost Medical Care Benefits program. This significantly reduces out-of-pocket costs and generally eliminates the fear of going bankrupt from an extended hospital stay.
Specific Procedures: The base cost of the procedure itself can influence the co-pay amount.
While there are not enough daycare centers in some parts of Tokyo and competition to get your child into one is fierce, for the most part, Japan ensures that its citizens and foreign residents have access to quality childcare at a reasonable cost.
Preschool and Kindergarten: Assuming an annual tuition of 79,800 yen (about US$530) per child in Tokyo, you would need to spend more in each of the following cities - except Seoul - for a similar program:
vs. London: 351,650 yen ($2,325)
vs. New York: 455,900 yen ($3,000)
vs. Paris: 125,500 yen ($830)
vs. Sydney: 305,000 yen ($2,000)
vs. Shanghai: 185,300 yen ($1,200)
vs. Seoul: 56,900 yen ($376) —> A relative bargain, not surprising for a country that needs more babies than even Japan. Your tax dollars at work in South Korea!
vs. Singapore: 176,700 yen ($1,200)
International Elementary School Education: Assuming a full-day, private school annual fee per child of 2,267,000 yen (approximately US $15,000) in Tokyo, you would need to spend more money in each of the following cities for a similar program:
vs. London: 3,826,000 yen ($25,300)
vs. New York: 9,571,000 yen ($63,300) —> Crazy!
vs. Paris: 2,564,000 yen ($16,950)
vs. Sydney: 2,585,000 yen ($17,100)
vs. Shanghai: 4,268,800 yen ($28,200) —> Ouch!
vs. Seoul: 2,984,100 yen ($19,700)
vs. Singapore: 4,029,600 yen ($26,600)
Public school, of course, would be significantly less expensive in all eight cities.
The degree to which you can maintain a frugal lifestyle and only splurge occasionally can, of course, greatly affect how much discretionary items impact your household budget.
Clothing: Although fast-fashion brands offer some relief from high prices, Japan is still a steal.
Pair of Jeans: Assuming 7,970 yen ($53) for a pair of Levis 501 jeans in Tokyo, you would need to spend the following to get something similar:
vs. London: 15,700 yen ($104)
vs. New York: 10,400 yen ($69)
vs. Paris: 15,300 yen ($101)
vs. Sydney: 11,600 yen ($77)
Shanghai: 9,580 yen ($63)
Seoul: 9,260 yen ($61)
Singapore: 10,000 yen ($66)
Summer Dress: Assuming 5,630 yen ($37) for a summer dress purchased at a chain such as Zara or H&M in Tokyo, you would need to spend the following to get something similar:
vs. London: 7,624 yen ($50)
vs. New York: 6,873 yen ($45)
vs. Paris: 6,674 yen ($44)
vs. Sydney: 10,261 yen ($68)
Shanghai: 5,600 yen ($37)
Seoul: 6,890 yen ($45)
Singapore: 6,500 yen ($43)
Movie Ticket: Assuming a ticket price of 1,900 yen (about US$12.55) for an internationally released movie in Tokyo, you would need to spend more money to see the same movie in most of the following cities:
vs. London: 2,861 yen ($18.90)
vs. New York: 2,989 yen ($19.75)
vs. Paris: 2,210 yen ($14.60)
vs. Sydney: 2,369 yen ($15.65)
vs. Shanghai: 1,258 yen ($8.30) —> Relatively cheap...but there may be censorship!
vs. Seoul: 1,692 yen ($11.17)
vs. Singapore: 1,699 yen ($11.21)
At these prices, even in Shanghai, you might be better off just waiting for the same movie to come out on Netflix.
Gym Membership: Assuming a monthly fee of 8,835 yen (about US$58) for a fitness club with amenities in Tokyo, you would need to spend more money for a monthly gym membership in most of the following cities except Seoul and Paris, which seems to offer value-for-money:
vs. London: 9,285 yen ($61)
vs. New York: 19,154 yen ($127)
vs. Paris: 6,300 yen ($42) —> Something of a bargain! Maybe this is why the French tend to stay thin...
vs. Sydney: 9,979 yen ($66)
vs. Shanghai: 12,100 yen ($80)
vs. Seoul: 7,700 yen ($51)
vs. Singapore: 15,100 yen ($100)
Now, there are many other cheaper gyms in all eight cities, but they do not offer as many perks. Of course, there is always the great outdoors, which is still free!
Cigarettes: Assuming 600 yen (about US$3.96) for a 20 pack of Marlboro cigarettes in Tokyo, you would need to spend much more to light up unless you are in other parts of East Asia:
vs. London: 2,861 yen ($18.91)
vs. New York: 2,572 yen ($17.00)
vs. Paris: 1,964 yen ($12.98)
vs. Sydney: 4,589 yen ($30.33) —> Assuming there are any Australian smokers left, it seems that the Australian government must rely on cigarette sales to fund half of its annual budget!
vs. Shanghai: 524 yen ($3.46)
vs. Seoul: 507 yen ($3.35)
vs. Singapore: 1,800 yen ($11.88)
Perhaps the governments of Japan, China and South Korea should seriously consider increasing revenues by doubling or tripling taxes on cigarettes.
So what? So based on all this detailed evidence, Tokyo is a real bargain, at least for now.
What’s next: The only certainty is that the cost of all these things will undoubtedly change. While Japan's inflation rate has risen sharply in recent years (especially since it had been stable to declining for more than two decades prior), it remains relatively modest compared to the world's other major economies. However, inflation is slowly but surely pushing up the price of just about everything, even in Japan. Visit (or move to) Japan now while almost everything looks cheap!
#CostofLiving #inflation #affordability #budgeting #FrugalLiving #生活費 #物価 #インフレ #アフォーダビリティ #家計 #節約生活
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