What is the average rent in Tokyo?

Authored by the expert who managed and guided the team behind the Japan Property Pack

Yes, the analysis of Tokyo's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Japan. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Japanese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Tokyo, Osaka, and Kyoto. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the average monthly rents in Tokyo by neighborhood or district?

Tokyo rental prices vary significantly across different wards, with central business districts commanding the highest rents.

Central wards including Minato, Chiyoda, and Chuo represent the premium market segment. Studios in these areas typically rent for ¥135,000-¥150,000 monthly, while 1LDK units range from ¥228,000-¥300,000. Single-family houses in these prime locations command ¥373,900-¥401,300 per month.

Popular urban wards like Shibuya, Shinjuku, and Meguro offer slightly more affordable options while maintaining excellent connectivity. Studios range from ¥124,000-¥135,000, 1LDK apartments cost ¥185,000-¥267,000, and houses rent for ¥281,500-¥352,200 monthly.

Northern and eastern wards including Tabata, Nippori, Toshima, and Arakawa provide better value propositions. Studios can be found for ¥91,000-¥104,000, 1LDK units for ¥164,500-¥191,000, and houses for ¥128,700-¥206,200 per month.

Outer wards such as Adachi, Katsushika, and Nerima offer the most affordable rental options, with studios starting from ¥80,000-¥100,000, 1LDK apartments from ¥130,000-¥170,000, and houses from ¥128,700-¥179,900 monthly.

How do rental prices vary between property types like studio, 1LDK, 2LDK, and houses?

Property type significantly impacts rental costs across Tokyo's residential market.

Studio apartments (1R/1K) represent the entry-level option, averaging ¥95,000 monthly citywide. These compact units are particularly popular among students and young professionals seeking affordable accommodation in central locations.

1LDK apartments offer more space and privacy, with rents ranging from ¥170,000-¥250,000 monthly depending on location. Central wards command premium prices, while suburban areas provide more reasonable rates for similar layouts.

2LDK and larger family apartments typically cost ¥190,000-¥300,000 monthly. These properties cater to families and professionals requiring additional space, with pricing heavily influenced by proximity to schools and transportation hubs.

Single-family homes show the widest price variation, ranging from ¥128,700 in suburban areas to ¥401,300 in central business districts. These properties appeal to expatriate families and affluent locals seeking private outdoor space and multiple bedrooms.

What are the average rents based on property size in square meters?

Tokyo rental pricing follows a clear pattern based on property size, measured in cost per square meter.

The Tokyo 23 wards average ¥4,547 per square meter monthly, providing a baseline for comparing different areas and property sizes. This metric helps investors and renters evaluate value propositions across diverse neighborhoods.

Central 5 wards command premium rates at ¥5,524 per square meter monthly, reflecting their prime location advantage and superior access to business districts, shopping, and entertainment facilities.

Greater Tokyo condominium market averages ¥4,393 per square meter monthly, slightly below the 23 wards average due to increased distance from central commercial areas.

Smaller units between 15-30 square meters have experienced the strongest rent increases recently, driven by high demand from single professionals and students. Larger units between 45-60 square meters maintain premium pricing in absolute terms but may offer better per-square-meter value in certain districts.

What is the total monthly cost for a rental including fees, taxes, and maintenance charges?

Tokyo rental costs extend beyond base rent to include various mandatory fees and charges.

Cost Component	Monthly Amount (¥)	One-time Amount (¥)
Base Rent	80,000-300,000	-
Maintenance Fee	5,000-20,000	-
Insurance	1,000-2,000	-
Utilities	10,000-25,000	-
Deposit (Shikikin)	-	1-2 months rent
Key Money (Reikin)	-	1-2 months rent
Agency Fee	-	1 month rent + tax
Guarantor Fee	-	70% of monthly rent
Cleaning Fee	-	30,000-50,000

These additional costs can add ¥16,000-¥47,000 to monthly expenses beyond base rent, while initial moving costs typically total 4-6 months' rent equivalent.

How do typical mortgage payments compare to rental prices for similar properties?

Mortgage payments often prove more economical than renting equivalent properties in Tokyo's current market.

A typical ¥50 million apartment mortgage results in monthly payments around ¥130,000 over 35 years at 1% interest rates. Additional ownership costs include management fees (¥22,000), reserve fund contributions, and property taxes (approximately ¥10,000 monthly), bringing total monthly costs to ¥162,000.

Comparable rental properties in central wards typically cost ¥180,000-¥250,000 monthly, making ownership 15-35% more economical. This advantage becomes more pronounced over longer holding periods as mortgage principal reduces while rents generally increase.

However, ownership requires substantial upfront capital including down payments (typically 20-30%), various fees, and closing costs. Renters avoid these initial expenses and maintain flexibility to relocate without transaction costs.

It's something we develop in our Japan property pack.

What kind of rental yields can you expect in Tokyo today depending on location and property type?

Tokyo rental yields vary considerably across different wards and property categories.

Premium central wards including Minato, Chiyoda, and Chuo typically generate 2-3% gross rental yields. These areas attract investors seeking capital appreciation and prestigious locations despite lower immediate returns.

Central business wards maintain similar yield ranges of 2-3%, reflecting high property values relative to rental income. However, these locations offer superior tenant demand and rental stability.

Emerging areas and transitional neighborhoods can achieve 3-4% yields, providing better balance between income generation and potential capital growth.

Outer wards such as Adachi and Katsushika deliver higher yields of 5-6%, appealing to investors prioritizing cash flow over location prestige. Greater Tokyo suburbs can generate 6-7% yields with appropriate property selection.

Short-term rental properties in select tourist-friendly locations achieve 4.8-5.95% yields but require active management and regulatory compliance.

How have average rents and yields changed compared to 5 years ago and 1 year ago?

Tokyo's rental market has experienced significant growth over recent years, particularly in premium locations.

Year-over-year rent increases from 2024 to 2025 range from 7-10% in central wards, driven by strong demand from both domestic and international tenants. Outer and suburban wards show more modest growth of 5-10% over the same period.

Five-year rent appreciation tells a more dramatic story, with premium areas experiencing 30-50% increases since 2020. This growth reflects Tokyo's resilience during global economic uncertainty and continued urbanization trends.

Rental yields have declined slightly citywide, dropping from approximately 4.3% in 2020 to 3.4% in 2025. This compression results from property price appreciation outpacing rent growth in central areas.

Suburban markets have maintained more stable yield profiles, with moderate rent increases and less dramatic price appreciation creating sustainable investment fundamentals.

What are the forecasts for rents and yields in 1, 5, and 10 years from now?

Tokyo rental market forecasts reflect evolving demographic and economic conditions.

Short-term projections for the next year suggest modest rent growth of 1-3%, particularly in central wards where current levels may be approaching affordability limits for many tenants.

Medium-term forecasts over five years anticipate continued upward pressure in central districts and redevelopment zones. Japan's aging population may boost demand for compact, accessible units while reducing demand for larger family properties.

Long-term 10-year projections present mixed scenarios depending on location. Central areas should remain resilient due to continued urbanization and international demand, while outer wards may experience rent plateaus or declines as demographic changes reduce household formation.

Yield forecasts suggest potential stabilization or slight improvement as rent growth may outpace price appreciation in mature markets, though this varies significantly by specific ward and property type.

It's something we develop in our Japan property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are current vacancy rates across different wards and property categories?

Tokyo maintains exceptionally low vacancy rates across most residential categories in mid-2025.

The Tokyo 23 wards average approximately 3% vacancy, representing a decrease from 3.6% the previous year. This improvement reflects strong rental demand and effective property management practices.

Central 5 wards demonstrate even tighter market conditions with vacancy rates around 2.8%, indicating robust demand for premium locations despite higher rental costs.

Apartment occupancy rates consistently reach 96-97% across most categories, suggesting healthy market fundamentals and limited oversupply concerns.

These low vacancy rates support rental growth and provide confidence for both investors and property managers regarding market stability and tenant demand sustainability.

What are typical renter profiles in Tokyo—foreigners, students, workers, families?

Tokyo's rental market serves diverse tenant categories with distinct preferences and requirements.

1. **Foreign residents** represent a rapidly growing segment, now comprising a majority of net migration into central wards. These tenants typically prefer modern amenities, English-speaking property management, and proximity to international business districts.2. **Students** concentrate near major universities in wards like Bunkyo, Shinjuku, and Toshima. They typically seek affordable studios or shared accommodations with good transportation access to educational institutions.3. **Young professionals** dominate smaller unit demand in central and business districts, prioritizing location convenience over space. They often prefer modern buildings with amenities and short commutes to major commercial areas.4. **Families** favor outer wards such as Setagaya and Nerima, seeking larger units or single-family homes with access to good schools and parks. They typically require multiple bedrooms and storage space.5. **Senior citizens** increasingly seek accessible units with medical facility proximity, particularly in established residential areas with comprehensive services.

What are the best strategies or types of units for short-term versus long-term rentals?

Tokyo rental strategies require different approaches depending on investment timeline and management preferences.

Short-term rental strategies focus on tourist-friendly locations including Roppongi, Shibuya, Asakusa, and areas near major transit hubs. These properties can achieve 4.8-5.95% yields but require compliance with zoning regulations and Minpaku law licensing requirements.

Successful short-term rentals typically feature modern amenities, English-language support, and proximity to attractions or business centers. However, they demand active management, higher turnover costs, and regulatory compliance monitoring.

Long-term rental strategies emphasize stable, predictable cash flow with yields ranging from 2.5-3.5% in central areas to 5-7% in suburban locations. These properties require less management overhead and provide more consistent income streams.

Optimal long-term rental properties include suburban family units targeting local residents and affordable studios serving students or young professionals. These strategies benefit from lower vacancy risk and reduced regulatory complexity.

It's something we develop in our Japan property pack.

How does Tokyo compare to other global cities like Seoul, Paris, London, or New York in terms of rent and yield?

Tokyo's rental market positions competitively among major global cities, offering unique advantages and characteristics.

City	Average Central 1BR Rent	Gross Yield (%)	Market Characteristics
Tokyo	¥135,000-¥150,000	2.5-3.5	Lower rent than NYC/London, stable market
Seoul	Similar or slightly less	2-3	Key money system, lower yields
Paris	€1,200-€1,800	2-3	High demand, strict rent controls
London	£2,000-£3,000	2-3.5	High prices, yields similar to Tokyo
New York	$3,000-$4,500	2-4	Highest rents, yields vary by borough

Tokyo offers more affordable entry points than New York and London while maintaining similar yield profiles. The city provides greater stability than many European markets and more transparent rental processes than some Asian competitors.

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.

Sources

1. GaijinPot - Average Rent in Tokyo
2. Eaves Japan - Japan's 2025 Single Family Home Rental Market
3. E-Housing - Rent Prices Along JR Yamanote Line
4. Tokyo International Meetup - Rent in Tokyo 2025
5. Patience Realty - Greater Tokyo Average Rents Rise
6. Savills Japan - Research Articles
7. Dovetail - Cost to Rent Apartment in Japan
8. BambooRoutes - How Much Apartment Tokyo
9. Apts.jp - Rent vs Buy in Tokyo Financial Comparison
10. Global Property Guide - Japan Rental Yields