Dealing with the High Cost of Living in Japan

When considering a move to Japan, it's important to be aware of the country's reputation for high living costs. While Tokyo's rental prices are notorious, and the overall cost of living in Tokyo beats smaller cities, you may find many smaller cities quite expensive as well.

However, apart from the rent, there are various other expenses to consider and ways to minimize them. As a Japanese individual who was raised in America and returned to Tokyo two decades ago, I've been fortunate to receive guidance from my family, friends, and colleagues on navigating the challenges of the high cost of living.

The Expensive Enigma of Japan

With a population of over 126 million, Japan is comparable in size to the state of California yet significantly more densely populated. If you've ever stood atop a skyscraper or visited the renowned Tokyo Skytree's viewing deck, you would have witnessed the sprawling landscape of the city, teeming with activity. It's no surprise that finding affordable housing is a major challenge, especially in Tokyo, where space is at a premium due to the sheer number of people residing here.

Rental Costs and Utilities

In smaller cities, finding and renting an apartment in Japan as a foreigner still remains a challenge. However, things have improved a lot in recent times, especially in metropolitan areas.

The expense of renting an apartment in Japan, especially in Tokyo, depends on the neighborhood you choose, but it is consistently the highest in the country. However, Not only is this due to the limited space available, but prospective tenants are also required to pay significant upfront costs equivalent to three to five months' rent before moving in. If you're a foreigner looking to rent an apartment in Japan, it would be beneficial to explore resources dedicated to this topic.

In addition to rent, utilities such as water, gas, and electricity are paid separately. Most apartments already come equipped with air-conditioning systems that provide both heating (Danbo) and cooling (Reibo) functions.

To optimize utility expenses, various providers offer bundled services that combine gas and electricity, often with upfront discounts and reduced monthly costs. It's advisable to conduct online research and utilize simulation tools to estimate potential spending.

Tokyo Electric Power Company (TEPCO) is a renowned provider in Japan, albeit on the pricier side. Some individuals opt for limiting indoor units, utilizing gas or electric heaters during winter, and relying on fans during summer to lower expenses.

Grocery Expenses

Supermarkets in Tokyo tend to be pricey, particularly when it comes to international brands. However, if you're open to local options, chain stores offer essential items at more affordable prices. Additionally, exploring neighborhood shops managed by local merchants can yield a range of seasonal fruits, vegetables, and other essential products.

In the countryside, farmer markets provide a cost-effective alternative, and certain regions are renowned for their products, often supplied to metropolitan areas. While the prices may be steep, many people opt to visit these regions and purchase goods in bulk, particularly if they have access to a car. Having friends or family from these areas can be advantageous, as they can provide guidance on places that offer bulk shipments at discounted prices.

By understanding the dynamics of Japan's high cost of living, individuals can make informed decisions and adopt strategies to mitigate expenses.

Navigating Food Expenses in Japan

Eating out, particularly during lunchtime, can be surprisingly affordable in Japan. Even high-end establishments often offer lunch deals in the form of Teishoku Setto or set menus. These meals often come with generous portions, free unlimited servings of rice (Okawari Muryo), and are definitely worth trying. Take advantage of these lunchtime deals, as prices tend to be higher during dinner hours at the same restaurants. Another cost-effective option is to explore 'one coin' or ¥500 Bentos (lunchboxes) available at convenience stores, locally known as combini. Additionally, there are television programs that feature eateries serving incredibly large or omori portions at remarkably low prices.

To uncover hidden culinary gems, it's best to venture out with colleagues and friends who are familiar with these hotspots. However, be prepared for long queues during peak hours. If your lunchtime isn't fixed, unlike the common noon break observed in many companies, consider going after the lunchtime rush to avoid crowds. Keep in mind that many of these places do not accept reservations and operate on a first-come, first-served basis.
Family-friendly dining options, such as family restaurants and popular chains, provide a wide selection of menu items, often available in English as well. Gusto, Jonathans, Royal Host, and Denny's are well-known chains offering affordable meals. Yoshinoya, famous for its Gyudon (stewed slices of beef on rice), and Matsuya are also pocket-friendly choices. These establishments often serve early morning breakfast menus at a reasonable cost. They are frequently open 24 hours a day and cater to a large customer base. For those in a hurry, there are plenty of Tachigui soba shops, where you can eat while standing, providing quick and inexpensive meals. Whether you are single or have a family, there are ways to manage expenses without compromising on quality.
For budget-conscious shoppers, hundred yen shops like CanDo, Daiso, and Seria offer a wide range of unique kitchen goods, gadgets, and basic household essentials. These stores are worth exploring for affordable options. Another alternative is Co-op Deli, where you pay a one-time membership fee. They offer an extensive selection of food items and household staples, including blankets and cleaning supplies, among others. Co-op Deli allows you to order heavy items like bottled water or soda boxes for home delivery. This not only saves money but also provides great convenience, especially for families. The membership can be canceled at any time, offering flexibility.
In conclusion, while the cost of living in Japan is undeniably high, there are various ways to navigate expenses. Over time, as you acclimate to life in Japan, you will discover more strategies to cut costs and makes living here more affordable. It's also valuable to seek tips and advice from others. While this article covers only a few aspects of living costs in Japan, these basic tips can make life not only easier but also more economical.