How much do you need to spend on food and utilities in Japan? A money-saving guide for foreigners

Rent is the largest expense in our living costs.

Let's take a look at the characteristics of rental properties for single people in Japan and the average rent.

Characteristics of rental properties for single people in Japan

In Japan, there are many rental properties available that are suitable for single people.

In this context, "properties suitable for single occupancy" refers to rooms such as studio apartments, 1K apartments, and 1DK apartments.

In other countries, a room called a "square type" is equivalent to a studio apartment. A 1K is a room with a living room and an attached kitchen (K), while a 1DK is a room with a living room, dining room, and kitchen (DK) all in one space.

In Japan, it's customary to sleep on futons, so the concept of a one-bedroom apartment, as seen overseas, doesn't really exist.

Therefore, whether it's a studio apartment or a 1K (1DK) apartment, the bed will basically be placed in the living room.

Conversely, properties without kitchens, which exist in some parts of other countries, are basically non-existent in Japan.

Unless otherwise noted, the rooms also include a bathroom and toilet.

rent

The average rent for rental housing for single people varies depending on the region.

[Average rent for single-person apartments by region]

Reference: National Rental Property Management Business Association, National Rent Trends

Tokyo is a popular choice for foreigners living in Japan for the first time, but it's important to be aware of the high rent levels. Remember that there can be a significant difference in rent prices.

Initial cost

In Japan, regardless of whether you're renting for yourself or not, you'll need to pay initial fees such as a security deposit and key money to sign a lease agreement for rental housing.

• Security deposit: A deposit paid to the landlord as a guarantee. A general guideline is one month's rent.
• Key money: Paid as a token of gratitude to the landlord. A guideline is 0.5 to 1 month's rent.
• Brokerage fee: A fee paid to the real estate company. A rough estimate is 0.5 to 1 month's rent.
• Fire insurance premium: Insurance for household goods such as furniture and appliances inside the house. Approximately 10,000 yen per year.

When you move in, you will need to pay the first month's rent in addition to these initial fees all at once.

For more details on security deposits and key money, please see " What are Security Deposits and Key Money in Japan? A Complete Guide to Successfully Signing a Rental Agreement ."

Balance between income (net income) and rent

The rent figures mentioned above are based solely on average amounts.

Depending on your income, you might be able to afford a more expensive apartment, or conversely, you might need to look for a cheaper one.

So, how should we think about the balance between income and rent?

In Japan, it is generally considered desirable to keep rent within one-third of one's income.

Alternatively, you could calculate it as "Income (net amount) - Living expenses other than rent - Remittances to family (if necessary)," and set the remaining amount as the upper limit for rent. If your purpose for working in Japan is to save money rather than to send money home, replace "remittances to family" with "savings" in your calculations.

In any case, rent is a fixed expense that you have to pay every month, so you should carefully consider how it balances with your income when looking for a place to live.

Now, let's look at the living expenses required for living alone in Japan, other than rent.

Utility and communication costs

According to the Ministry of Internal Affairs and Communications' " Household Survey: Single-Person Households (2024) ," the average utility and communication costs for a single person are as follows:

(The data used in this article is basically based on this research report.)

[Average electricity charges by region]

[Average water charges by region]

[Average gas bills by season]

Japan is a long, narrow country, and the climate varies greatly from region to region, which means electricity rates also vary.

Gas prices vary more by season than by region, so we have written them as above.

Based on the national average, the total monthly utility bill for a single person is approximately 10,800 yen.

[Communication costs]

• National average: 7,008 yen

Electricity, gas, and water companies vary by region, but communication fees do not vary by region.

Food and other living expenses

Now let's look at other living expenses.

[Food expenses]

• National average: 43,941 yen

It is said that the ideal percentage of money spent on food for a single person (Engel coefficient) is around 15%.

If your monthly income is 200,000 yen, you should aim to spend 30,000 yen on food, and if it is 300,000 yen, you should aim to spend 45,000 yen.

[Clothing expenses]

• National average: 4,881 yen

Japan has four seasons, so you'll need to buy clothes for each season, so your clothing expenses may be higher than this average during your first year in Japan.

[Insured medical expenses]

• National average: 8,394 yen

If you are staying in Japan for more than three months, even if you are a foreigner, you must enroll in health insurance. People who work for a company are automatically enrolled in social insurance, and all other foreigners are required to enroll in national health insurance.

If you enroll in health insurance, your out-of-pocket medical expenses will be reduced to one-third.

In addition, there is a "high-cost medical care system" in place that will reimburse any medical expenses that exceed a certain amount if the amount of medical expenses you have to pay out of pocket is high.

Therefore, if you are starting to live alone in Japan, there is probably no need to take out expensive private medical insurance yourself.

Now that you have a general idea of the money needed for living alone in Japan, let's think about ways to save money on living expenses as much as possible.

How can I keep my rent down?

In Japan, real estate agents like those in other countries are not common. Therefore, when looking for a place to live, you will use a real estate company.

When foreigners are signing a lease for a rental property in Japan, it is recommended to use a real estate company that offers multilingual services.

For example , Mooovin supports not only English but also Chinese and Vietnamese.

Based on that, please look for a room that is in line with your income.

The rent for a rental property is determined by factors such as location, distance from the station, floor plan, age of the building, and amenities.

Therefore, if you want to keep your rent as low as possible, you should look for older apartments or properties that are a little further from the station.

Also, if you're living in Tokyo, where rents are particularly high, you might consider living in a shared house where you share a property with other foreigners.

With Mooovin, you can search for your ideal property by specifying various conditions such as rent, floor plan, distance from the station, age of the building, and whether room sharing is allowed.

Try searching by changing various conditions.

How can I reduce initial costs?

The security deposit and key money make up a large portion of the initial costs for moving into a property.

However, recently, the number of properties with no security deposit or key money has been increasing.

On Mooovin, you can also search for properties that do not require a key money or security deposit by checking the box labeled "No Key money or Security deposit."

How can I reduce my utility bills and communication costs?

You can also keep your utility bills low with a little ingenuity.

For example, consider water bills. If you live alone and take a bath, it's more economical to just take a shower rather than filling the bathtub with water like most Japanese people do.

Also, be mindful of how you use your air conditioner. In Southeast Asia, it's common to blast your air conditioner, but setting it to 27-28°C in the summer and 20-22°C in the winter can help reduce your electricity bill.

Compared to other countries, communication costs in Japan may seem high. However, with a little ingenuity, it's possible to save money.

For example, with Rakuten Mobile , you can get unlimited data for just 3,278 yen per month. If you live alone, you might not even need home internet if you use your smartphone's tethering function.

How can I reduce food and other living expenses?

The key to saving money on food is to cook at home as much as possible.

I understand the feeling of longing for your home country and the urge to use your own ingredients and seasonings, but imported goods are inevitably more expensive. Therefore, let's try to find Japanese alternatives.

For example, Thai soy sauce can be easily substituted for Thai soy sauce.

Also , you might be able to buy ingredients and seasonings from your own country cheaply at stores like " Gyomu Super " or " Don Quijote ."

Furthermore, make good use of the limited-time sales at your local supermarket.

While not commonly seen overseas, Japanese supermarkets often sell their prepared foods and bento boxes at half price in the evening or just before closing time. Check it out on your way home from work!

If you're looking to buy clothes cheaply, I recommend checking out secondhand shops (reuse shops).

You can find affordable seasonal clothing at recycling shops like Second Street and Treasure Factory , which have branches all over the country .

Utilizing local communities

Social networking services like Facebook have a large number of groups registered that are based on specific races or groups of members.

In addition to exchanging information and building connections within such groups, using personal trading is also one way to save money.

Using a household budget app

Keeping a household budget makes it easier to manage your income and expenses, which in turn helps you save money on living costs.

Some smartphone budgeting apps can automatically register credit card payments or allow you to scan receipts and record them.

Find a budgeting app that suits you and manage your finances wisely.