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Understanding average rental prices in Japan is crucial for both property investors and individuals considering relocation to the country. As of September 2025, Japan's rental market shows significant regional variations, with Tokyo commanding premium prices while offering moderate yields compared to other major cities.
The Japanese residential rental market spans from compact studio apartments in urban centers to single-family homes in suburban areas, each with distinct pricing structures and investment potential. Regional cities like Fukuoka and Sapporo offer notably higher rental yields than Tokyo, making them attractive for income-focused investors.
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Tokyo leads Japan's rental market with studio apartments ranging from ¥100,000-¥120,000 monthly, while regional cities like Sapporo offer similar units for ¥45,000-¥65,000. Family apartments in Tokyo's central areas command ¥250,000-¥380,000 per month, significantly higher than Osaka's ¥120,000-¥200,000 range.
Rental yields vary dramatically by location, with Tokyo averaging 3.4% in central wards while regional cities like Fukuoka achieve 6-8% yields. Short-term rentals through platforms like Airbnb can generate 20-50% higher gross income than long-term leases but require intensive management and regulatory compliance.
| City | Studio Rent (¥/month) | Family Rent (¥/month) | Average Yield (%) |
|---|---|---|---|
| Tokyo (Central) | 100,000-120,000 | 250,000-380,000 | 3.4 |
| Osaka | 60,000-80,000 | 120,000-200,000 | 4.47 |
| Kyoto | 53,000-70,000 | 110,000-150,000 | 4.2 |
| Fukuoka | 50,000-70,000 | 100,000-150,000 | 6-8 |
| Sapporo | 45,000-65,000 | 90,000-140,000 | 5.09 |
| Yokohama | 70,000-90,000 | 140,000-200,000 | 4.0 |
| Rural Areas | 30,000-50,000 | 60,000-100,000 | 5-7 |
What's the current average rent in Japan by major cities and regions?
Tokyo's central wards command the highest rental prices in Japan, with studio apartments ranging from ¥100,000 to ¥120,000 per month.
Osaka follows as the second most expensive market, with studios priced between ¥60,000 and ¥80,000 monthly. Family-sized 2LDK apartments in Osaka range from ¥120,000 to ¥200,000 per month, representing a 30-45% discount compared to Tokyo's equivalent properties.
Regional cities offer significantly more affordable options, with Kyoto studios averaging ¥53,000-¥70,000 monthly and Fukuoka ranging from ¥50,000-¥70,000. Sapporo presents the most budget-friendly major city option, with studios available for ¥45,000-¥65,000 monthly. Yokohama, despite its proximity to Tokyo, maintains moderate pricing at ¥70,000-¥90,000 for studios.
Rural areas across Japan provide the most economical rental options, with studios typically priced between ¥30,000-¥50,000 monthly and family homes ranging from ¥60,000-¥100,000.
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How do rents vary depending on the type of property, like studio apartments, family houses, or luxury condos?
Property type significantly impacts rental pricing across Japan's residential market.
| Property Type | Size (sqm) | Tokyo Central Rent (¥/month) | Osaka Rent (¥/month) | Price per sqm Tokyo (¥) |
|---|---|---|---|---|
| Studio (1R/1K) | 15-25 | 100,000-120,000 | 60,000-80,000 | 4,800-6,700 |
| 1LDK | 30-50 | 150,000-230,000 | 90,000-150,000 | 4,600-5,000 |
| 2LDK | 50-70 | 250,000-380,000 | 120,000-200,000 | 5,000-5,400 |
| 3LDK | 70-90 | 380,000-500,000 | 180,000-280,000 | 5,400-5,600 |
| Large Units | 80-150 | 500,000+ | 300,000+ | 6,200+ |
| Single-family | 100-200 | 224,000 | 117,000 | 1,100-2,200 |
What's the average rent per square meter for different property sizes?
Per-square-meter pricing in Japan follows an inverse relationship with property size, where smaller units command higher rates per square meter.
Studio apartments in Tokyo's central areas achieve the highest per-square-meter rates, ranging from ¥4,800 to ¥6,700 per square meter monthly. This premium pricing reflects the high demand for compact living spaces among young professionals and international workers.
Mid-sized apartments (1LDK to 2LDK) maintain relatively consistent per-square-meter rates between ¥4,600 and ¥5,400 monthly. Larger family units (3LDK) command ¥5,400-¥5,600 per square meter, while luxury large units exceed ¥6,200 per square meter.
Single-family homes present significantly lower per-square-meter costs, typically ranging from ¥1,100 to ¥2,200 monthly. This reflects the suburban locations of most detached housing and different market dynamics compared to urban apartment buildings.
Regional cities like Osaka maintain per-square-meter rates approximately 30-45% below Tokyo levels across all property categories.
What are typical examples of rental prices for small apartments, mid-size condos, and single-family homes?
Small apartments across Japan's major cities demonstrate clear regional pricing hierarchies.
In Tokyo's central wards, a typical 20-square-meter studio apartment commands ¥100,000-¥120,000 monthly. Osaka's equivalent units range from ¥60,000-¥80,000, while Sapporo offers similar accommodations for ¥45,000-¥65,000 monthly.
Mid-size condominiums (1LDK to 2LDK) show substantial price variations. Tokyo's 40-square-meter 1LDK units typically rent for ¥150,000-¥230,000 monthly, compared to Osaka's ¥120,000-¥200,000 range for 2LDK properties. Sapporo's mid-size condos range from ¥90,000-¥140,000 monthly.
Single-family homes present the most dramatic regional differences. Tokyo's average single-family rental stands at ¥224,000 monthly, while Osaka averages ¥117,000 and Sapporo ¥72,000. These properties typically range from 100-200 square meters and include private outdoor space.
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How much do additional fees, taxes, and maintenance costs add to the total rent for tenants and owners?
Additional costs significantly impact the total rental expense for both tenants and property owners in Japan.
Maintenance and management fees typically range from ¥300-¥400 per square meter monthly. For a standard 50-square-meter apartment, this adds ¥15,000-¥20,000 to monthly costs. Utilities average ¥5,000-¥15,000 monthly for studio apartments and ¥15,000-¥25,000 for 2LDK units.
Additional building-related expenses including insurance, cleaning, waste management, and Wi-Fi typically add ¥10,000-¥20,000 monthly to total occupancy costs. Initial move-in fees can be substantial, often requiring 4-6 months' rent upfront for deposits, key money, agent fees, lock exchange, and fire insurance.
Property owners face significant tax obligations. Fixed Asset Tax averages 1.4% of property value plus City Planning Tax at 0.3%, totaling approximately ¥850,000 annually for a ¥50 million property. Rental income tax rates range from 5-45% for residents and approximately 20% for non-resident owners.
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What does a typical mortgage look like compared to rental income for investors?
Mortgage payments in Japan's current market often closely align with equivalent rental costs for similar properties.
Tokyo family units demonstrate this balance clearly, with typical mortgage payments averaging ¥235,000 monthly compared to ¥200,000 monthly rental costs for equivalent properties. This narrow margin makes purchase decisions highly dependent on individual circumstances and long-term plans.
Japanese lenders typically offer 80% loan-to-value ratios, requiring 20% down payments for domestic buyers. Non-resident investors may face more restrictive lending terms with higher down payment requirements and interest rates.
Buying suits long-term residents planning to stay in Japan for extended periods, while renting provides flexibility for mobile professionals and short-term residents. The decision often hinges on mobility requirements rather than pure financial calculations due to the similar monthly costs.
Property investors must consider that gross rental yields rarely exceed mortgage interest rates plus maintenance costs in Tokyo's central areas, making capital appreciation the primary return mechanism for premium locations.
What are the differences in profitability between short-term rentals, like Airbnb, and long-term leases?
Short-term rentals generate 20-50% higher gross income than long-term leases but require significantly more operational effort and regulatory compliance.
Tokyo Airbnb properties average ¥508,000 monthly gross income with occupancy rates ranging from 71-92% and average daily rates of ¥19,445. This compares favorably to long-term rental income but involves cleaning costs, guest management, and licensing requirements.
Long-term leases provide superior stability with occupancy rates of 95-97% in desirable Tokyo locations. These arrangements eliminate the operational headaches associated with guest turnover, cleaning schedules, and regulatory compliance issues that affect short-term rentals.
Short-term rentals face strict licensing requirements in many Japanese cities, particularly Tokyo, where operators must obtain proper permits and comply with specific operational guidelines. Violations can result in substantial penalties and forced closure of operations.
Income volatility represents another key difference, with Airbnb earnings fluctuating based on seasonal demand, tourism trends, and local events, while long-term leases provide predictable monthly income streams.
What are the profiles of typical renters in Japan right now, and how does that affect demand?
Japan's rental market is primarily driven by young professionals, foreign workers, students, and single-person households seeking urban convenience.
The dominant tenant demographics include:1. Young professionals aged 25-35 working in major corporations2. International workers and expatriates on temporary assignments3. University students requiring proximity to educational institutions4. Single-person households preferring urban lifestyle and convenience5. Senior citizens seeking accessible, maintenance-free housing options
High demand concentrates in Tokyo, Osaka, and other urban hubs due to employment opportunities, transportation convenience, and international business presence. These cities maintain consistently low vacancy rates and strong rental growth due to continuous population inflows.
Japan's aging population increasingly drives demand for senior-friendly rental units and co-living spaces designed for elderly residents. This demographic shift creates new rental market segments focused on accessibility, healthcare proximity, and community-oriented living arrangements.
Regional and rural areas face declining rental demand due to population migration to urban centers and demographic aging, resulting in higher vacancy rates and rental price stagnation in these markets.
What are the vacancy rates in different regions and property types, and how do they impact rent levels?
Japan's national housing vacancy rate reached a record high of 13.8% as of September 2025, but significant regional variations create distinct market conditions.
Tokyo maintains much lower vacancy rates at 10.9%, with major rental properties in desirable locations achieving occupancy rates exceeding 96%. This tight supply situation supports continued rental price growth and landlord pricing power in the capital.
Regional disparities are dramatic, with rural prefectures like Tokushima experiencing 21.3% vacancy rates. These high vacancy levels force landlords to offer rental incentives, reduce prices, and accept longer vacancy periods between tenants.
Property type affects vacancy rates significantly. Modern apartment buildings in urban centers maintain low vacancy rates, while older properties and those in suburban locations face higher vacancy challenges. Single-family homes in rural areas experience the highest vacancy rates due to limited demand and aging populations.
High vacancy regions typically see depressed rental growth and landlord concessions including reduced deposits, free months, and included utilities to attract tenants.
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What are the average rental yields today, and which property types offer the best returns?
Japan's national average rental yield stands at approximately 4.2% as of September 2025, with significant variations by location and property type.
Tokyo yields range from 2.5-5.2%, averaging 3.4% in central wards. While yields appear modest, Tokyo properties benefit from strong capital appreciation and rental growth that enhances total returns for investors.
Regional cities deliver superior yields with Fukuoka achieving 6-8%, Sapporo at 5.09%, and Osaka at 4.47%. These markets provide higher current income but typically experience slower capital appreciation than Tokyo.
Property type significantly impacts yield potential. Nationwide, strata-title condominiums yield approximately 6.6%, wood-frame apartment buildings achieve around 8%, and multi-family reinforced concrete buildings average 7.5%. Tokyo properties generally yield less than national averages due to premium pricing.
The highest yields typically come from older apartment buildings in regional cities, but investors must balance yield against maintenance costs, vacancy risks, and capital appreciation potential when evaluating opportunities.
How have rents and yields changed compared to one year ago and five years ago, and what are the current trends?
Tokyo rental market experienced significant growth in 2025, with rents increasing 6.7% year-over-year, marking the strongest growth since 2019.
Studio and one-person apartment rents surged approximately 15.8% in leading Tokyo wards, while family-sized units showed more moderate growth. This divergence reflects strong demand from young professionals and international workers returning to Japan post-pandemic.
Rental yields experienced slight decline as property prices rose faster than rents. Tokyo multifamily yields average 3.7%, down from 3.8% in previous periods, but this compression reflects strong capital appreciation rather than rental weakness.
Five-year trends show consistent rental growth of 5-6% annually in key Tokyo wards since 2024, supported by population inflows, wage growth, and limited supply of new rental units. Regional cities experienced more modest but steady rental growth during this period.
Current market trends indicate sustained rental growth momentum driven by returning international residents, continued urbanization, and robust employment markets in major cities.
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What are the forecasts for rents and yields in one year, five years, and ten years, and how do they compare to other major global cities?
Tokyo and Osaka rental markets are forecast to continue growing at 5-6% annually in prime areas over the next several years.
One-year outlook predicts sustained rental growth driven by population inflows, limited supply, wage growth, and return of international tenants. The national rental market is projected to expand at a 4.8% compound annual growth rate through 2033.
Five-year forecasts remain optimistic for urban centers, with Tokyo expected to maintain its position as a global rental hub supported by urbanization trends and sustainable development initiatives. Regional cities may experience more moderate growth as demographic challenges continue.
Ten-year outlook suggests Tokyo will remain competitive globally while offering more stable returns than volatile markets. Japanese rental yields of 4-5% compare favorably to other Asia-Pacific markets and provide greater stability than higher-yield but riskier emerging markets.
Compared to global cities, Japanese rents remain lower than New York, London, and Singapore, but yields are competitive for the Asia-Pacific region. This positioning attracts international investors seeking stable, moderate returns with limited downside risk.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Japan's rental market offers diverse opportunities from high-yield regional investments to stable Tokyo properties with capital appreciation potential.
Success requires matching investment strategy to market conditions, whether pursuing current income through regional properties or long-term growth through Tokyo real estate.
Sources
- BambooRoutes - Average Rent Japan
- Eaves Japan - Single Family Rental Market Guide
- Expatica - Cost of Living in Japan
- E-Housing - Apartment Rent by Prefecture
- Dovetail - Apartment Rental Costs Japan
- Housing Sugee - Living in Japan Costs
- E-Housing - Rent vs Buy Tokyo Guide
- Expatica - Japan Mortgage Guide
- Airbtics - Tokyo Airbnb Revenue
- Global Property Guide - Japan Rental Yields