When it comes to affordability in places like Japan or Germany, where there are strong renter protection laws, one extremely important factor is rent time: How long have people lived in their rented apartments. That's why median statistics often show quite reasonable prices, but you just cannot find any actually available flats for a similar price: The people living in the cheap flats just won't move out but even if they do, most rent protections are lifted and the same place is rented for a huge up-charge to somebody new.
ikr. that's my situation rn. started renting a new build in berlin just a few years ago for 1100€ warm for 70sqm relatively central. in the meantime the same flat would apprently cost 2000€, but still paying the old price. I guess tokyo for 70sqm would be at least 250k yen for 70sqm nowadays too. soooo.... then the question is: if the extra money spent for living in a big city is actually worth it.
In that case one would use the current rental ads to get a sense of the going rents. Also while noting that location makes prices everywhere vary wildly.
@@_momosumomo Although that may not be accurate either. It would be slightly inaccurate in the wrong direction- the landlords factor in the renter protection laws and make it more expensive for new renters. You can expect the current rental ads to reflect what you would be paying in the future, but not what people are paying now.
In Germany, there are statistical terms for this: Angebotsmieten (currently offered rental prices) vs Bestandsmieten (average rents). The latest differences per sqm are 8.00 EUR in Munich and 7.50 EUR in Berlin.
Wow Hannah, this video is amazing. Super in detail and with a super good rythm. I guess this took a considerable amount of time and effort to make, but it was worth it. With an internet full of half-true info or data looking to bait people to engage with the content (usually in negatice ways), having quality content like this is becoming very rare. Thank you for this!
American, live in Japan - even with salary difference, Japan is leagues more affordable because I don’t have a lot of the other necessary expenses to America - namely NEEDING to own a car in America - and my transport is paid for by my company here which is common in Japan.
You can live in a car free city like NYC, SF, Boston, DC in the US to offset costs but unfortunately it’s nowhere near the same quality as Japan’s. My recent job offer did offer transportation allowance in the US so times are changing let’s see.
I loved this deep dive Hannah, so insightful!! Your new apartment looks beautiful too 😍✨ I also agree that it doesn’t make any sense to simply compare the cost of living in Japan with your own salary from back home (commonly USD) as a base reference, especially right now with the weak yen and how the exchange rate fluctuates. Been thinking this for a long time, so I’m glad you said it! Side note - had no idea about the origins of key money either 😮
Thanks Sara! Yeah comparison really doesn’t work well between two countries especially when one currency isn’t very strong atm cuz otherwise you could say that we were all getting paid 50% more two years ago haha
Honestly, if you're willing to make another video about the house market, I would love it! I'm planning to move out there and looking at my options, it can get confusing..
A major factor in the costs to income comparisons is equity in pay/ the scales. NYC might have a very affluent upper 10 or 20% but the majority of people working in the city can't afford to live near where they work, and the demand for some of the upper middle income people to live in NYC is very low, so they end up commuting from Long Island or Connecticut or New Jersey. I came to Tokyo as a student after working 5 years in manufacturing engineering for aerospace, my pay was around $40,000, OT not included. I cannot afford an apartment back in the rural northeastern state I grew up in. I can literally say things I have made are on Mars but I couldn't afford a 1 bedroom apartment in the middle of nowhere. Tokyo's median is low because pay stays the same across most strata of society. Minimum wage is around $15,000 per year while the minimum wage in my state was around the same. Difference is, you can get a 1R for $500 but a studio (same thing as a 1R) in my state is $1400 on the LOW end. But the "median" wage in that state is $47,000, even though nobody I know below the age of 50 makes that, and it's still not enough for the state average for a 1 bedroom apartment at 30% of income. For reasons I can't get into I am returning to the US for the foreseeable future, however, the jobs I qualified for (but would not be able to sponsor my visa) would pay me *more* than I was getting in the US, and my rent here is HALF of what I was paying as a share of my rent living with other people, and still $300 less than my mortgage 3 years ago. And the job offers I was getting trying to get me to quit my school to work full time for them, were all foreign companies, and were offering $60,000 to $90,000 because "nobody wanted to relocate". A year later, oops, none of those positions are open because people realized they can live more than opulently in Yokosuka or Kanagawa for that kind of pay. If you're working for a company in Tokyo you can expect to start around $30,000 and "climb" to around $60,000, but the thing is, wages and prices are still extremely stagnant here. Prices have barely changed in 15, 20 years while in the US most things have DOUBLED in the same amount of time. So you end up with Tokyo, a place that was considered insanely expensive and very well paid 30 years ago now being "extremely cheap" and "low paid" because CPI has remained about the same, and so has quality of life, while people struggle in other places because of wildly out of control CPI increases. If you split up the population into ten percentile chunks and compare peer cities in the US to Tokyo, Tokyo's increase will be a gentle slope while the US's will look like an exponential curve. And nobody building housing in the US is looking at making sure there is a bracket of affordability for each income bracket, they are all looking to maximize ROI by exclusively making "luxury" apartments that are around the same build quality as public housing in Austria but because there are jacuzzi jets in the leaking tub and 3 square feet of marble in a coffee nook in the kitchen it's going to demand $500/mo over market rates. Tokyo also has share houses (not "renting a room" in someone's house, a building of individual rooms, most with private baths, sharing a kitchen and common space, all residents are renting rooms) which is basically impossible to legally build or rent in the US which is not factored into your statistics. Those are easily affordable even on Tokyo minimum wage while there is no city in the US where a minimum wage earner can afford to live alone. The final word is quality of life. People will balk at the "cut in pay" but don't realize that they will be living in an area far more accessible, comfortable, safe, and enriching than they would get where they are coming from. Especially coming from the US, it really feels like a third world country going through a major economic depression at this point compared to Tokyo. $80,000 a year and not having good healthcare and even having to pay $10,000+ medical bills with insurance if something goes wrong, not being able to walk through the park without seeing the worst victims of society floundering in public, having to drive somewhere to have a meal at $40 a pop for mediocre food and having to pay a tip, driving back to your home, having to worry about not drinking or making any mistakes while driving or you have to pay a few days worth of pay for a ticket, or $40,000 and a society that has your back and basically having a world of experience within a 15 minute walk and access to the best transportation system in the world, it's up to you.
Yeah that's a big thing that the west is lacking. Housing for the very low income. Shared houses and even manga cafes and capsule hotels means (almost) nobody has to sleep on the streets even if they're really, really down on their luck.
Tokyo might not be cheap, but at least there seem to be enough appartments to find something. In a lot of European cities (looking at you Amsterdam) there just don't seem to be any places to rent or buy.... Awesome video, very insightful!
Same here in Boston these days. Tech business explosion sucked up all the inventory. Initial cash outlay is also an issue, first and last month rent, security deposit, broker fee are all due up front. That's 4 months worth of rent!
@@Mwoods2272trick is get a place outside of Tokyo on one of the main lines. It’s a lot cheaper and plenty of options. And because trains are so easy, it’s not that much different to living in Tokyo itself.
The fact you can find smaller apartments in Tokyo if you don't want roommates is so important, even if the per sqm cost is not significantly better. Depending on where you are here in the US there can be quite high minimum sq ft laws which make building affordable smaller units illegal. It's not for apartments, but a town adjacent to where my mom lives in Texas INCREASED the minimum square footage of a detached house from 1000 sq ft to 1500 sq ft (93 m2 -> 140 m2) a few years ago because they want to make it harder for lower and middle income people to move to the town. As I understand, cities and towns in Japan are banned from doing this to make the market more fair. We had similar laws banning small units until fairly recently, and my state (Washington) just last year passed a law stating that micro-units (so a bedroom with shared bathroom and kitchen area) have to be legal anywhere apartments are legal because many cities and towns were banning them (again, to keep low income people away, but almost always under the guise of equity or whatever other reason that sounds fine on its face).
Great video, Hannah. Pointing out the realities of what it's like for renters in general, and also as a foreigner, in Tokyo was really interesting to watch.
Welcome to Tokyo! Hope you love it here :) Great comparison and breakdown of the whole process. I kept thinking "Wow, she worked hard on this and it shows!" Great video.
I've said it before and I'll say it again, Hannah is my favorite content creator on Topic: Japan. She covers off the beaten path and hidden places in Japan and talks about Japan from a very real perspective without that mindless ✨"place Japan"✨ vibe. She shuts down misinformation about Japan so well, and I admire her as a filmmaker, her filming and editing skills are beyond amazing. We appreciate your presenter skills and life experiences Hannah- from a silent viewer of many years ^_^
Well done, Hannah. And yes, when you get around to it, I would love to see a "buy a house in Japan" video, especially if you could somehow contrast the urban vs rural situation.
Wait this video was surprisingly interesting! Especially as someone not in the market for an apartment in Tokyo I still found myself pulled into the many explanations displayed here. Great job, I’ll definitely come check your channel once in a while now!
Excellent video! I used to live in Tokyo, but moved back to Sydney and now live in Melbourne. I too got kind of annoyed at the Tiktoks, Reddit posts etc. saying how cheap Tokyo was when the reality was different, mostly due to the salaries, but also the upfront costs. However, I will say that Australia should look at the decent renter protections (pet rules excluded) that Japan offers. At the time I left, I was slightly above the median salary and found a cheap place in Toshima-ku, about 30m2 for 83,000yen/month. As I grew older and became more homely (covid didn't help) I gradually became more frustrated with the lack of space and living in the crowded city in general. Anything bigger quickly got out of my price range. I moved back to Sydney and while Japan will always have a place in my heart, I feel I have a better quality of life here in Australia (for more than pure economic reasons). That said, I moved in the midst of the housing crisis and the rental prices were insane. My place in Melbourne, however, which I rent with my partner, is nicer than most apartments you'd find in Tokyo and, given the salaries we earn here, probably more affordable.
I’m kinda glad I’m living in Osaka now (80k for 1LDK near Umeda) 😅 those Tokyo prices are scary even coming from Sydney! Great video btw! The quality of the video is super high
This is so true - I just moved to Tokyo from the USA with my husband about a month ago and it’s been such a learning experience! We came from a really affordable city in the US so price per sq meter is so much higher here in Tokyo, and I’m having to get used to a much smaller space than the 3 bedroom house we had in the US! We’re really lucky that we’re here on a secondment and so are still getting paid in USD through the American branch of the Japanese company my husband works for, because you’re 1000% right that the salary comparison, let alone the strength of the yen right now, makes such an impact. We’ve been trying to make this move for a couple of years now, and I’ve loved watching your videos as a way to get a sense of what it’s like in Japan before we moved here! ❤
Hannaさん, I've been watching your wonderful TH-cam Videos ever. The video of this Japanese rental situation left me a deep impression. It is wise that you quote the median rather than the average wage value about the monthly salary! However, if a little supplemental about the monthly wage wage in Japan, the actual condition is slightly different from the statistics value. In Japan, wage calculations are based on the average wage for three months in the short term. It is because it is intended to quote the calculation standard of the unemployment insurance amount. In other words, Japan's unique bonus system which paid 2times in year is not included in payroll calculations. I think employee average monthly salary exceeds 50000 yen. I offer it to your reference.
Thank you for your comment! For a long long time I have been trying to point out that strict comparison of Japanese salary with those from other countries (especially the US) is hazardous, simply because it risks skewing (in a negative way) significantly the 'earnings' of Japanese workers. The twice/year bonus paid out to Japanese workers is practically a given, with the amount of the bonus influenced by how well a company does (1-4 x monthly salary). As such, the typical (average) Japanese salary commonly reported could be ~ 15% (bonus of 1x monthly salary) to 40% (4x monthly salary) LOWER than the ACTUAL earning. Such bonus is quite rare in North America, and usually offered only in certain industries (resources extraction, tech), and has 2 components: cash component being ~ 10% of annual salary + stock options with equivalent monetary value being perhaps 15-20% (could be as high as 40-50% for executives) of salary; it must be noted that the bonus is not guaranteed. Back in late 1990's, I learned that a U. of Tokyo engineering professor was paid 7 million Yen, roughly US $ 70,000 which was considerably higher than typical salaries of comparable rank in Canada (and the US). The wildly fluctuating (from historical trends) FX rate between US $ and JPN Yen within the last 3 years, caused mainly by money trader speculations, have hit Japanese consumers hard, due to the fact that Japan imports most of its energy and raw materials; but the housing (including rent) costs in Japan have remained largely stable.
The bonus system really frustrates me. I switched from a job where I consistently got a good bonus to a new job with slightly higher wages, but this year the president has already apologized twice for business not being good enough to pay out bonuses. It's really hard to know in advance how much you will actually earn, and it seems quite easy for them to just not pay bonuses when they don't feel like it. The fact that it makes earnings calculations on a statistical scale harder certainly doesn't help...
Thank you very much for your polite reply. Through Hannahさんyoutube community, I am very glad that Audience of everyone will deepen your knowledge of Japan. I'm sorry for my poor English!
I love every deep dive video you do. Especially this one! My husband and I were thinking of buying a home in Japan based of all the social media of the “cheap homes”. Would love a deep dive on that so we can get an actually knowledgeable and not click bait take on this! You’re amazing!!
If you want to live 3 hours in the middle of a rice paddy, yes, you can get almost free. There is a reason why Japanese don't want to live there. I doubt you Gen Zs could live so isolated.
Housing costs are definitely a big part of affordability, but different metros have completely different expense breakdowns for "median" households. It's easy to live in Tokyo or New York City without a car and opting out of owning one doesn't significantly limit your housing options. But in the US for example - if you want to live without a car in LA or Atlanta you're paying a significant premium to access the scarcity of apartments with proximity to transit (or local density). I think the perception of rent being "cheap" in Tokyo is grounded in a comparison of apartment prices in Tokyo with proximity to transit / density (large supply) and apartment prices with proximity to transit / density in car centric metros (constrained supply, demand exceeds supply).
Great video! On the relatively good "affordability" of London: (1) rentals are gross of council tax which is the property tax paid by the tenant - I believe in the US property taxes are paid by the landlord, (2) housing stock is generally older and poorer quality leading to high energy bills. I'm only aware of these differences because I've rented in London, but it just highlights how hard it is to make meaningful value for money comparisons between cities.
I just left from my trip there, but I love it so much that I'm thinking of going there again in a few months! Thank you for posting, and I'll be sure to check your guide!
I pay USD165/month in Thailand after coming from AUD500/week for a matching property. My bills are USD50/month and USD10/day living costs. The cost of things is 1/3 ,1/10, 1/20, 1/30 of at home prices depending on what it is but locals keep trying to hustle me for double the market price, but it doesn’t work on me. I save my money, formally study the language and throw all my extra cash into my asset column. I have a 400cc motorbike for fun that takes me to waterfalls, rivers and mountains and maybe once a month I go out on town for 2,000 baht =USD60 .
had to comment. great video!! Yea absolutely, i would love a video on why buying a home in japan is not a great idea right now 😅. It sounds like a great idea so im so curious why its not. The hidden fees of japan rentals blew my mind! Bought your book and we're planning to plan a trip to japan sometime next year and am super excited. its very well done with places and experiences weve never thought/heard of before. thank you!
Amazing video Hannah! I love how informative you make all your vids, the perfect level 💖 Definitely vote yes for the "why not to invest in japan real estate" video!
I always love your videos and the deep thought you put into making them. I love spreadsheets and maps and comparisons and you put it all in one video? I was happily bouncing in my chair. Thank you for sharing information what it's like for foreigners renting in Tokyo. I've seen all these videos as well and wondered how much truth was behind it. I'm from London and can only say that prices have risen so much that it's really hard to move. Been in my flat for nearly ten years and although my landlady has been kind and only raised the rent once, I'd love to move outside of London and live a bit cheaper. It's just that I could be paying exactly the same outside the city.
Wow mucho trabajo! Very well done video I must say. I learned a new trick from earlier this year in Japan. Even if you don’t a booking for an empty restaurant, tell them you have one. Works about 50% of the time.
Current exchange student in Tokyo and working part time for a US country remotely. In a student dorm with private bath and washer. Its around 17m^2. Can add a meal schedule if you'd like and bike parking. Everything comes out to: Rent: 68000 yen --- 440 USD Maintenance Fee: 21000 yen -- 135 USD Meal Schedule 15000 -- 100 USD Bike Parking: 300 yen -- 2 USD (Not Included) Utilities: 6000 yen -- 40 USD So roughly around 110000 yen or 730 USD. That doesn't include groceries as I like to cook sometimes or eat something different. I don't make too much but it is enough to enjoy doing something every weekend for a small trip or save for 1-2 weeks for a big trip. Key money was real annoying like how she said. If you budget it can be achievable to do what you want here. 👍
Okay I’m obsessed with this video. We just moved to Kichijoji in a 3LDK and our landlord made us pay 12 months worth of rent as a deposit for the apartment because we are foreigners. We also paid one month’s worth of rent as key money and one month’s worth of rent to our real estate agent. We are self employed making USD though so we are lucky to have the cash needed to get this rental! Thanks so much for the video though! I learned so much and was living for the spreadsheets tbh haha
Omg TWELVE MONTHS?! I have never heard of that before, I’m so sorry. I didn’t know it could get much worse 😖 Landlords just realllly wanna make sure you’ll be okay to pay rent I guess!
12 months deposit! The most I have heard of is 6 months. Often the landlord tries to find reasons to not give you all the deposit back, so expect a fight for the money when you leave.
I feel very enlightened by the the spreadsheets haha 😆 Honestly though this was such an amazing deep dive and I'd also love watching a deep dive on buying houses in Japan!
My wife and I live in a UR in Chigasaki, and it's worked out very well for us, too. We pay around 130,000 yen/month for a 3LDK apartment with floor heating and 8,000 yen/month for garage parking. Our building is 9 years old, about 10 minutes from the beach on foot, and pets are allowed. And we have an amazing view of Mt. Fuji from nearly all of the rooms. As you say, URs don't charge key money, and our rent has never been raised (we've lived here for 7 years).
Renting (monthly existence) vs your first months and setup fees are separate in my mind. But I get that rolling them together keeps it on top of your mind and angry about it longer. Anywhere in Japan is gonna set you back a lot for all the obnoxious fees to move in. But having lived in Kansai myself I've always assumed Tokyo was more expensive and always had it proved to me. Considering moving to Okayama now, which is the opposite to Tokyo or Osaka. But so many places are getting expensive now. So I have a feeling we would just buy a house instead of renting. I keep conversion in my mind at 100:1USD and that makes it seem like your rent is still super high. At least it will be if the yen corrects itself. At current conversion rates, yea sure it's cheap at about $1275/m on 11/21/24. But at the end of the day if you work in Japan and make yen, then spend yen the conversion doesn't matter. If you can afford it then thats awesome. I just wonder how people who make like you said on average $24kUSD/year can afford places like that + parking.
Great balanced video Hannah. I found that looking for the sweet spot between distance from, say Yamanote line for price vs space & convenience is always tricky. You could move waaay out into the hills and have a house for the price of rents in Meguro but would have a much longer commute. I’ve always enjoyed living fairly close to major stations (10-15mins), but just far enough to still have large parks, greenery, river, even a few farms. I pay about ¥140,000 for 60m, but for years was paying around ¥95,000 for a 35m place. Happy to have more room to spread out and something more modern. Salary wise I’m well above median thankfully but didn’t need to spend more.
Love the pin in the wall fact. Renting in Sydney we were so careful not to damage the walls because we knew anything other than reasonable wear and tear was going to cost us later. But in Japan we got a sneak peek of the rental before we moved in. There were pinholes everywhere…. A week later when we moved in, the walls were pristine in preparation for our move in (but the fees did really go towards this).
Because the wallpaper is usually textured and plastic, it is often possible to use the tip of the pin to stretch the plastic a little to cover the pinhole. Someone looking for pinhole damage would be hard pressed to find it. IYKYK
People forget that Japan is apart of the developed world/global north, like much of Europe and North America. You should be expected to get European/North American rent if you want to live out there for some time.
Aaah, nothing like 25 mins of informative, yet sarcastically entertaining video from Hannah 💪 Attempting to even measure affordability of places is a huge task, so kudos for trying! I'll learn if you were wrong by scrolling through the comment section in a sec 👍 I just want to say that out of all things, countries are just borders with history; most of us - if we put aside fear and figure some stuff out - can travel almost anywhere, and make our decisions of where to live and what to do based on what we individually want and need. I've done a big move once, next year I'm doing another, and cannot wait to explore X countries and get a taste of life and problems everywhere else.
Thanks for the level-headed and well thought out video. I’ve been living in Japan for around 12 years and can certainly empathize with the complaints regarding perceived affordability of rent prices here.
Thank you for sharing very interesting information about renting in Tokyo. I used to stay in Tokyo several times years ago but I never had to worry about renting myself. I value and appreciate the level of detail and interesting topic as well as the interview with the real estate agent Yoh.
I've lived here for almost 3 years and last year I moved to a detached house, it took 5 months to find a good enough place (with the exception of the very first one I saw in Asakusa but that I did miss because of my hesitation). By far, this is the best video I've seen on this topic, explaining to non-Japan residents what are the actual costs, hurdles and challenges of renting in Tokyo.
Very interesting. After watching this I feel much better about my comfortable house with a view of the mountains and nature all around in the Rockies. It's tough out there.
I'm so glad you mentioned the luxury that is small apartments being available. I think it's a really important element that helps prevent people from becoming homeless, or to get out of homeslessness
Your eighth point was spot on. To compare like for like don't only compare the number of rooms but the number of square metres or feet. Typically, higher price per metre prices in aspects such as area desirability, age and condition of building as well as quality of a flat's interior decorative materials and appliances (if included), on-site parking (especially sheltered), proximity to conveniences such as underground stop, shopping, parks and recreation, quality schools, etc.
@@PK-gs3xoHong Kong has maaaaany more problems that are leading to their situation. Allowing small apartments is not the cause. A major factor is their tax structure encourages the government to push up land prices well above market so they can sell it off and make a lot of tax money.
I was neither angry at the stats or enlightened by the Google sheet. Instead, I spent 5 minutes of the video trying to get rid of the piece of hair on my phone screen that turned out to be the outline of your green screen 😂 Loved the video, super interesting to dive into!
I have not even watched the video yet but as someone who lived in Japan in 98/99, Jan 05 -June 05, Jan 06 - October of 2010 all working on contract and having my visa and place of living sponsored/provided my employer; As a foreignor especially one that is going to Japan for the first time and does not have a good grasp of thr Japanese language and reading/writing hiragana, some kanji and katakana, you can knock about 70% of those "for lease/rent" apartments off of your availability list because they are not renting to foreignors. 🤷🏿♂️ EDIT: After watching the video, the apartment that they have (her partner is Japanese, they have more access.) is nit anywhere near the average apartment in and aroun Tokyo or even in the edge of Chiba in say Shin Urayasu just 12 minutes away from Tokyo station on the Keiyo line. They have a mansion. An average apartment is tiny, imagine the tinyist 630 sq ft apartment in the U.S. and cut that into 1/4, thats the average
My husband and I lucked out with our UR housing in Koto Ward and pay 150,000 for a 2LDK, 70 square metres. No increases in 6 years. Thank goodness for tenant protection because management changed a few years ago and it is no longer subsidized housing. Similar units now go for 220,000 + fees. Compared to other big cities, I feel like you can be frugal and still live a pretty good life here (eating out and transport are accessible no matter your budget) The catch is that as a foreigner you are always at the whim of your visa and your buying power outside Japan is currently plummeting.
thanks Hannah! this was very informative! the rights, the hidden fees especially! I don't really mind the statistics because it can really vary depending on the area, so thank you so much!
Would love to hear your cons on why its bad as someone actively looking for a property there right now! :) Super informative video btw and really adds that perspective that a lot of foreigners need to hear i think
I live in Jingumae, Shibuya in a pretty small place about 5 minutes from two major stations for ¥77000. I moved during the pandemic so I got a free month rent with no key money or deposit. My salary is a bit above the average so I am very comfortable. The place is small but cute with two windows and no buildings in front of them. I have only one neighbor on a side of my unit so I think I have one of the best places in Tokyo honestly. Great video!
Yes, please do a video about home ownership ( not an Akiya) as it relates to being financially responsible--i.e: personal finances; not so much for "investors" that want to flip them or of be a landlord
Had a very similar experience when moving from AU to work in JP. The advertised monthly rent was so reasonable for great places, but the up-front costs (non-advertised) were insanely high coming out collectively to about at minimum 6-months (sometimes 10-months) worth of rent(!) We had to heavily narrow our search by roughly accounting for the up-front cost based on a proportion of the rent and area. I wish they could just tell us it would make things a lot more transparent... also yes, the key money and gratuity is absolute BS. We had one place (out of our range) call back when we had emailed that we were going to pass and said they would waive the fee. Just shows it really can't be that important. Must say the property agencies/management are a lot nicer here though and feel like actual human beings rather than the vampires in AU.
Heck of a deep dive! Well done! Was actually super interesting. Median rental price down here in Perth is $600au per week for a house, and $550per week for units. Thankfully I'm a home owner since 2009, so average mortgage is $436,393au. Average wage is also $108,000au, but i'm no where near that because i'm not in the mining sector. The mining sector sings our wages soooooooooo far over average.
I'm always amazed at how much effort you put in each of your videos. Looking forward to the full home tour. p.s Would love a video about "why buy real estate investment is a bad idea in Japan"
I've been living in Tokyo and was below median salary until fairly recently. Never had a problem with living in a small space and I found it pretty affordable to live here up until I got married and started a family. Now the lack of space is seriously burdensome, and I'm not thrilled about buying a house cause 1. I don't know where would be a good permanent location with factors like kid's school, future jobs, etc. 2. They seem to cost a hell of a lot for something that is still pretty small. and 3. it's not an investment so I don't really know if the renting is just throwing your money away vs owning type argument holds here. Would definitely like to see a video from you exploring this.
Great and informative video. Would love to see that video on purchasing a house that you mentioned and what the hidden costs, rules, and pitfalls are in doing that in Japan. Also, you mentioned Osaka cost for rental early in the video, curious if you could comment on difference in average costs for renting in different major cities across Japan? Please keep up the great content! ❤
Hannah, I would love to hear your thoughts on all the super cheap homes in Japan that show up on IG cause it takes every bit of my willpower NOT to just buy a home over there. Great info in this vid btw!
I live on the East Side of Tokyo, kita-senju. The East Side is overall cheaper than the West Side. I'm 10 minutes from the station. Good sized apartment and paying 7.5 mon yen (around $500). That said, no elevator, but rather I walk up and down four flights of stairs. Personally, I'm good with that. Same apartment with an elevator would be twice price.
Good video. One thing that I should mention is that Meguro is an upper middle class neighborhood and 30% more expensive rent than UENO which is not a bad place to live. Tokyo is huge and very accessible by trains so it's considered one of the best value for money cities in the world. You can still find apartments for sale for US 100K. I live in NYC, there are no apartments for sale in Manhattan for less than 300K even for a one room studio.
*cries in millennial living in Sydney 🥲 Great video Hannah! I would totally rather live in a tiny 1LDK/studio than live with my parents or try to find people to rent with. Every city seems to have their own problems. Why is housing so hard atm!
13:15 We've been rejected several apartments being Japanese national plus foreigner. Reasoning was mostly about community communication required and the locals might be uncomfortable with the presence of a foreigner.
Hi Hannah the big plant in your unit is a heliconia, or crabs claw , also in the small planter pot try a decorative succulent / cactus, also some liquid fertiliser, on your plants ,and they will have a nice healthy glow , to grow and grow
I’m a student in London and I can’t afford to stay here after graduation, it’s a real crisis here. Only rich people live in apartments, and share houses are generally our only option and tend to be falling apart, my last place had holes in the floor and we had to try to take the landlord to court. The rent for these places is ridiculously high too, to the point people on minimum wage can’t afford even these houses. The median salary for london is ridiculously high because a lot of it includes business people who commute in for work, not people who actually live here and are trying to just survive. It’s really bleak here.
19:08 I’m originally from Hong Kong, and I can help explain the income needed for rent compared to the median salary. First, a 40m sq flat is considered large in Hong Kong, let alone a 50m sq one. Flats of this size typically have 2 to 3 bedrooms and are designed for families. Since most people in Hong Kong live with their families, the average flat size of 40m sq likely reflects this norm. For single individuals earning the median salary, affording a 40m sq flat is unrealistic. They are more likely to live with their parents or in subdivided flats, sections of a larger apartment, that cost around HKD 4 to 8k a month, depending on the location. Alternatively, they may live in public housing provided by the government. For an average family, both spouses typically work, and their adult children in their 20s often contribute to the household income. This could explain why the calculation of “3x salary” should account for family income rather than individual earnings. This also underscores the stark wealth gap in Hong Kong. With a high Gini coefficient, the disparity between the rich and poor is extreme, resulting in very different living standards across the population.
Thanks for helping to set people straight, there's so much misinformation out there! For me, coming from LA to Tokyo as a software engineer, I am paying a lot more in percentage of my salary for rent now than I used to - and for half the size (~38sqm 1LDK in the central wards, pet OK, it's nice but nothing crazy). I roll my eyes when I see those 'it's amazingly cheap to live in Tokyo!' apartments sensationalized on social media that are prob like
I imagine it's just an outlier to have a software engineering salary in LA, which means you were paid very very well(relatively speaking). Everything else is just regression to the mean. Though I might be wrong, and it might actually be easy enough to be a software engineer in LA and have wages be that high forever.
If you're a software engineer in the US on the West Coast, depending on how experienced you are, you are in the top 10% of earners nationwide, if not top 5% or better. Of course moving to a country with lower average salary for the same industry is going to increase your housing costs. It's a factor you have to take into consideration when you choose whether to move abroad.
Actually with tax of 40% in Australia, that 90k after tax is actually earning 150k salary, not many people earn 7.5K a month even in Australia. So affordable to a smaller percentage of people. Our average income is actually around 20-30K low class jobs, 50-60K uni jobs and 50-100K for uni job for managers after tax for full time jobs. The difference of pay between jobs are huge. Also most Aussies are used to renting homes rather than apartments with only 50m but the rent per house is about 700 a week 2 hours from Brisbane in Queensland.
THANK YOU! as someone from 3rd world (PH), It's always been a pet peeve when someone from US or another country says sO ChEaP hEre but obviously showing hire end(for locals) stuff
Please please please do a video about buying a place in Japan. Your realistic take on what it's actually like to do this would be welcome! My Japanese wife and two kids are considering moving to Japan... and thinking of buying a place. Would love to know if things like air bnb are affecting the housing market there and what gotchas we have to consider.
Thank you Hannah for the video ! Really informative as I live in Tokyo, is good to know some things that we can do if the landlord requests anything. (even though the beginning phase is challenging). May I ask for the excel file on the rent in Tokyo in each city? it'll be really helpful.
For many homes only being 35k usd I’d say just buy it outright. Even if they don’t give foreigners a mortgage, that kinda money you can just pay cash for in full. The full price of the home is the cost of a down payment.
I bought a 60m2 apartment in Shinjuku-ku in 2008 and sold it for roughly the same amount in 2020. You can't make money on real estate, but you can sure save rent. 144 months times ¥250000 is a lot of beer. And the bank interest is basically zero.
I consider key money as upfront rent payment. One advantage for Japanese rent contract is that it doesn’t require early termination fees like in the US, perhaps because landlord collects key money upfront.
As someone who currently lives in Philadelphia, where the average portion of a person's income spent on rent is somewhere around 40% (we are America's poorest major city with the highest poverty rate and a median income that remained stagnant for nearly 40 years), and as someone who wants to move to Japan and has looked at the median income compared to the median apartment price in the areas where I would like to live... it would be a lateral move, at best, for me financially speaking. Thank you for providing context, and for reminding everyone with American dollars that Japan is cheap only so long as they participate in their economy purely as a consumer.and not as a resident or laborer.
When it comes to affordability in places like Japan or Germany, where there are strong renter protection laws, one extremely important factor is rent time: How long have people lived in their rented apartments. That's why median statistics often show quite reasonable prices, but you just cannot find any actually available flats for a similar price: The people living in the cheap flats just won't move out but even if they do, most rent protections are lifted and the same place is rented for a huge up-charge to somebody new.
Ooooh that’s actually a super interesting point that I never considered! Another factor to throw into the equation!
ikr. that's my situation rn.
started renting a new build in berlin just a few years ago for 1100€ warm for 70sqm relatively central. in the meantime the same flat would apprently cost 2000€, but still paying the old price.
I guess tokyo for 70sqm would be at least 250k yen for 70sqm nowadays too.
soooo.... then the question is: if the extra money spent for living in a big city is actually worth it.
In that case one would use the current rental ads to get a sense of the going rents. Also while noting that location makes prices everywhere vary wildly.
@@_momosumomo Although that may not be accurate either. It would be slightly inaccurate in the wrong direction- the landlords factor in the renter protection laws and make it more expensive for new renters. You can expect the current rental ads to reflect what you would be paying in the future, but not what people are paying now.
In Germany, there are statistical terms for this: Angebotsmieten (currently offered rental prices) vs Bestandsmieten (average rents). The latest differences per sqm are 8.00 EUR in Munich and 7.50 EUR in Berlin.
Wow Hannah, this video is amazing. Super in detail and with a super good rythm. I guess this took a considerable amount of time and effort to make, but it was worth it. With an internet full of half-true info or data looking to bait people to engage with the content (usually in negatice ways), having quality content like this is becoming very rare. Thank you for this!
Thank you so much Jon! I’m doing my best (though I admit that maybe I bit off more than I can chew with this one) 😂
@@CurrentlyHannahgood thing you didn't dox yourself... ^ 👀😂
American, live in Japan - even with salary difference, Japan is leagues more affordable because I don’t have a lot of the other necessary expenses to America - namely NEEDING to own a car in America - and my transport is paid for by my company here which is common in Japan.
Yeah this is true. The rest of your lifestyle outside of renting can be quite lean financially!
You can live in a car free city like NYC, SF, Boston, DC in the US to offset costs but unfortunately it’s nowhere near the same quality as Japan’s. My recent job offer did offer transportation allowance in the US so times are changing let’s see.
having a car in japan is awesome tho...can't imagine my life here without one!
the spreadsheet comparing rent-to-income in different cities was very cool!
Thankyou for all the effort you put into your videos.
I love the actual honesty, not the "clickbatey" stuff that is around.
I’m doing my best 😅 Thank you!
I loved this deep dive Hannah, so insightful!! Your new apartment looks beautiful too 😍✨
I also agree that it doesn’t make any sense to simply compare the cost of living in Japan with your own salary from back home (commonly USD) as a base reference, especially right now with the weak yen and how the exchange rate fluctuates. Been thinking this for a long time, so I’m glad you said it!
Side note - had no idea about the origins of key money either 😮
Thanks Sara!
Yeah comparison really doesn’t work well between two countries especially when one currency isn’t very strong atm cuz otherwise you could say that we were all getting paid 50% more two years ago haha
Honestly, if you're willing to make another video about the house market, I would love it! I'm planning to move out there and looking at my options, it can get confusing..
A major factor in the costs to income comparisons is equity in pay/ the scales. NYC might have a very affluent upper 10 or 20% but the majority of people working in the city can't afford to live near where they work, and the demand for some of the upper middle income people to live in NYC is very low, so they end up commuting from Long Island or Connecticut or New Jersey. I came to Tokyo as a student after working 5 years in manufacturing engineering for aerospace, my pay was around $40,000, OT not included. I cannot afford an apartment back in the rural northeastern state I grew up in. I can literally say things I have made are on Mars but I couldn't afford a 1 bedroom apartment in the middle of nowhere.
Tokyo's median is low because pay stays the same across most strata of society. Minimum wage is around $15,000 per year while the minimum wage in my state was around the same. Difference is, you can get a 1R for $500 but a studio (same thing as a 1R) in my state is $1400 on the LOW end. But the "median" wage in that state is $47,000, even though nobody I know below the age of 50 makes that, and it's still not enough for the state average for a 1 bedroom apartment at 30% of income.
For reasons I can't get into I am returning to the US for the foreseeable future, however, the jobs I qualified for (but would not be able to sponsor my visa) would pay me *more* than I was getting in the US, and my rent here is HALF of what I was paying as a share of my rent living with other people, and still $300 less than my mortgage 3 years ago. And the job offers I was getting trying to get me to quit my school to work full time for them, were all foreign companies, and were offering $60,000 to $90,000 because "nobody wanted to relocate". A year later, oops, none of those positions are open because people realized they can live more than opulently in Yokosuka or Kanagawa for that kind of pay.
If you're working for a company in Tokyo you can expect to start around $30,000 and "climb" to around $60,000, but the thing is, wages and prices are still extremely stagnant here. Prices have barely changed in 15, 20 years while in the US most things have DOUBLED in the same amount of time. So you end up with Tokyo, a place that was considered insanely expensive and very well paid 30 years ago now being "extremely cheap" and "low paid" because CPI has remained about the same, and so has quality of life, while people struggle in other places because of wildly out of control CPI increases.
If you split up the population into ten percentile chunks and compare peer cities in the US to Tokyo, Tokyo's increase will be a gentle slope while the US's will look like an exponential curve. And nobody building housing in the US is looking at making sure there is a bracket of affordability for each income bracket, they are all looking to maximize ROI by exclusively making "luxury" apartments that are around the same build quality as public housing in Austria but because there are jacuzzi jets in the leaking tub and 3 square feet of marble in a coffee nook in the kitchen it's going to demand $500/mo over market rates.
Tokyo also has share houses (not "renting a room" in someone's house, a building of individual rooms, most with private baths, sharing a kitchen and common space, all residents are renting rooms) which is basically impossible to legally build or rent in the US which is not factored into your statistics. Those are easily affordable even on Tokyo minimum wage while there is no city in the US where a minimum wage earner can afford to live alone.
The final word is quality of life. People will balk at the "cut in pay" but don't realize that they will be living in an area far more accessible, comfortable, safe, and enriching than they would get where they are coming from. Especially coming from the US, it really feels like a third world country going through a major economic depression at this point compared to Tokyo. $80,000 a year and not having good healthcare and even having to pay $10,000+ medical bills with insurance if something goes wrong, not being able to walk through the park without seeing the worst victims of society floundering in public, having to drive somewhere to have a meal at $40 a pop for mediocre food and having to pay a tip, driving back to your home, having to worry about not drinking or making any mistakes while driving or you have to pay a few days worth of pay for a ticket, or $40,000 and a society that has your back and basically having a world of experience within a 15 minute walk and access to the best transportation system in the world, it's up to you.
Yeah that's a big thing that the west is lacking. Housing for the very low income. Shared houses and even manga cafes and capsule hotels means (almost) nobody has to sleep on the streets even if they're really, really down on their luck.
Tokyo might not be cheap, but at least there seem to be enough appartments to find something. In a lot of European cities (looking at you Amsterdam) there just don't seem to be any places to rent or buy.... Awesome video, very insightful!
Yes, that’s a very good point. Plenty of vacancies here!
Same here in Boston these days. Tech business explosion sucked up all the inventory. Initial cash outlay is also an issue, first and last month rent, security deposit, broker fee are all due up front. That's 4 months worth of rent!
There are vacancies but half won't rent to foreigners.
No mass immigration in Japan❤❤❤
@@Mwoods2272trick is get a place outside of Tokyo on one of the main lines. It’s a lot cheaper and plenty of options. And because trains are so easy, it’s not that much different to living in Tokyo itself.
I really enjoy "Hannah Explains" videos. Hannah explains sunscreen. Hannah explains rent in Japan.
The fact you can find smaller apartments in Tokyo if you don't want roommates is so important, even if the per sqm cost is not significantly better. Depending on where you are here in the US there can be quite high minimum sq ft laws which make building affordable smaller units illegal.
It's not for apartments, but a town adjacent to where my mom lives in Texas INCREASED the minimum square footage of a detached house from 1000 sq ft to 1500 sq ft (93 m2 -> 140 m2) a few years ago because they want to make it harder for lower and middle income people to move to the town. As I understand, cities and towns in Japan are banned from doing this to make the market more fair. We had similar laws banning small units until fairly recently, and my state (Washington) just last year passed a law stating that micro-units (so a bedroom with shared bathroom and kitchen area) have to be legal anywhere apartments are legal because many cities and towns were banning them (again, to keep low income people away, but almost always under the guise of equity or whatever other reason that sounds fine on its face).
Yes I covered that in the video. It’s something I really love about apartments in Japan!
SO. HELPFUL. I wanna see this Japan home investment video pls.
Good timing for your move 😄
Yes, please!❤
Great video, Hannah. Pointing out the realities of what it's like for renters in general, and also as a foreigner, in Tokyo was really interesting to watch.
Welcome to Tokyo! Hope you love it here :) Great comparison and breakdown of the whole process. I kept thinking "Wow, she worked hard on this and it shows!" Great video.
I've said it before and I'll say it again, Hannah is my favorite content creator on Topic: Japan. She covers off the beaten path and hidden places in Japan and talks about Japan from a very real perspective without that mindless ✨"place Japan"✨ vibe. She shuts down misinformation about Japan so well, and I admire her as a filmmaker, her filming and editing skills are beyond amazing.
We appreciate your presenter skills and life experiences Hannah- from a silent viewer of many years ^_^
This is such a lovely comment! Thank you so much ☺️ It’s everything I strive to be!
Well done, Hannah. And yes, when you get around to it, I would love to see a "buy a house in Japan" video, especially if you could somehow contrast the urban vs rural situation.
Wait this video was surprisingly interesting! Especially as someone not in the market for an apartment in Tokyo I still found myself pulled into the many explanations displayed here.
Great job, I’ll definitely come check your channel once in a while now!
Excellent video! I used to live in Tokyo, but moved back to Sydney and now live in Melbourne. I too got kind of annoyed at the Tiktoks, Reddit posts etc. saying how cheap Tokyo was when the reality was different, mostly due to the salaries, but also the upfront costs. However, I will say that Australia should look at the decent renter protections (pet rules excluded) that Japan offers.
At the time I left, I was slightly above the median salary and found a cheap place in Toshima-ku, about 30m2 for 83,000yen/month. As I grew older and became more homely (covid didn't help) I gradually became more frustrated with the lack of space and living in the crowded city in general. Anything bigger quickly got out of my price range. I moved back to Sydney and while Japan will always have a place in my heart, I feel I have a better quality of life here in Australia (for more than pure economic reasons). That said, I moved in the midst of the housing crisis and the rental prices were insane. My place in Melbourne, however, which I rent with my partner, is nicer than most apartments you'd find in Tokyo and, given the salaries we earn here, probably more affordable.
I’m kinda glad I’m living in Osaka now (80k for 1LDK near Umeda) 😅 those Tokyo prices are scary even coming from Sydney!
Great video btw! The quality of the video is super high
Yes Osaka was much more affordable 😅
Loved how much work you put into adding nuance to this video! So helpful
This is so true - I just moved to Tokyo from the USA with my husband about a month ago and it’s been such a learning experience! We came from a really affordable city in the US so price per sq meter is so much higher here in Tokyo, and I’m having to get used to a much smaller space than the 3 bedroom house we had in the US! We’re really lucky that we’re here on a secondment and so are still getting paid in USD through the American branch of the Japanese company my husband works for, because you’re 1000% right that the salary comparison, let alone the strength of the yen right now, makes such an impact. We’ve been trying to make this move for a couple of years now, and I’ve loved watching your videos as a way to get a sense of what it’s like in Japan before we moved here! ❤
Such a fantastic video! Thank you for doing the research and math and providing context!
Really appreciate this video. And, yes, I am interested in knowing more about buying properties in Japan.
Hannaさん, I've been watching your wonderful TH-cam Videos ever. The video of this Japanese rental situation left me a deep impression.
It is wise that you quote the median rather than the average wage value about the monthly salary!
However, if a little supplemental about the monthly wage wage in Japan, the actual condition is slightly different from the statistics value. In Japan, wage calculations are based on the average wage for three months in the short term. It is because it is intended to quote the calculation standard of the unemployment insurance amount.
In other words, Japan's unique bonus system which paid 2times in year is not included in payroll calculations. I think employee average monthly salary exceeds 50000 yen. I offer it to your reference.
Thank you for your comment! For a long long time I have been trying to point out that strict comparison of Japanese salary with those from other countries (especially the US) is hazardous, simply because it risks skewing (in a negative way) significantly the 'earnings' of Japanese workers. The twice/year bonus paid out to Japanese workers is practically a given, with the amount of the bonus influenced by how well a company does (1-4 x monthly salary). As such, the typical (average) Japanese salary commonly reported could be ~ 15% (bonus of 1x monthly salary) to 40% (4x monthly salary) LOWER than the ACTUAL earning. Such bonus is quite rare in North America, and usually offered only in certain industries (resources extraction, tech), and has 2 components: cash component being ~ 10% of annual salary + stock options with equivalent monetary value being perhaps 15-20% (could be as high as 40-50% for executives) of salary; it must be noted that the bonus is not guaranteed.
Back in late 1990's, I learned that a U. of Tokyo engineering professor was paid 7 million Yen, roughly US $ 70,000 which was considerably higher than typical salaries of comparable rank in Canada (and the US). The wildly fluctuating (from historical trends) FX rate between US $ and JPN Yen within the last 3 years, caused mainly by money trader speculations, have hit Japanese consumers hard, due to the fact that Japan imports most of its energy and raw materials; but the housing (including rent) costs in Japan have remained largely stable.
The bonus system really frustrates me. I switched from a job where I consistently got a good bonus to a new job with slightly higher wages, but this year the president has already apologized twice for business not being good enough to pay out bonuses. It's really hard to know in advance how much you will actually earn, and it seems quite easy for them to just not pay bonuses when they don't feel like it.
The fact that it makes earnings calculations on a statistical scale harder certainly doesn't help...
Thank you very much for your polite reply. Through Hannahさんyoutube community, I am very glad that Audience of everyone will deepen your knowledge of Japan. I'm sorry for my poor English!
I love every deep dive video you do. Especially this one! My husband and I were thinking of buying a home in Japan based of all the social media of the “cheap homes”. Would love a deep dive on that so we can get an actually knowledgeable and not click bait take on this! You’re amazing!!
It is not in Tokyo where the abandoned house are.
If you want to live 3 hours in the middle of a rice paddy, yes, you can get almost free. There is a reason why Japanese don't want to live there. I doubt you Gen Zs could live so isolated.
Housing costs are definitely a big part of affordability, but different metros have completely different expense breakdowns for "median" households. It's easy to live in Tokyo or New York City without a car and opting out of owning one doesn't significantly limit your housing options. But in the US for example - if you want to live without a car in LA or Atlanta you're paying a significant premium to access the scarcity of apartments with proximity to transit (or local density). I think the perception of rent being "cheap" in Tokyo is grounded in a comparison of apartment prices in Tokyo with proximity to transit / density (large supply) and apartment prices with proximity to transit / density in car centric metros (constrained supply, demand exceeds supply).
You’re right, the affordable transportation in Tokyo really makes spreading out from the city centre possible!
17:41 Median Salary (Median Einkommen) und Median Rent (Median Miete) für die Städte Sydney, Los Angeles, London, New York City und Hongkong.
Great video! On the relatively good "affordability" of London: (1) rentals are gross of council tax which is the property tax paid by the tenant - I believe in the US property taxes are paid by the landlord, (2) housing stock is generally older and poorer quality leading to high energy bills. I'm only aware of these differences because I've rented in London, but it just highlights how hard it is to make meaningful value for money comparisons between cities.
Yes, in the US property tax is paid by the landlord, but of course it will get at least partially passed on to the tenant in the rent
I just left from my trip there, but I love it so much that I'm thinking of going there again in a few months! Thank you for posting, and I'll be sure to check your guide!
I pay USD165/month in Thailand after coming from AUD500/week for a matching property. My bills are USD50/month and USD10/day living costs.
The cost of things is 1/3 ,1/10, 1/20, 1/30 of at home prices depending on what it is but locals keep trying to hustle me for double the market price, but it doesn’t work on me. I save my money, formally study the language and throw all my extra cash into my asset column. I have a 400cc motorbike for fun that takes me to waterfalls, rivers and mountains and maybe once a month I go out on town for 2,000 baht =USD60 .
Someone here who has his head screwed on correctly. Tokyo is filled with zombie suits and you pay over $1000 USD for a shoebox. Where do I sign?
Someone here who has his head screwed on correctly. Tokyo is filled with zombie suits, and you pay over $1000 USD for a shoebox. Where do I sign?
Someone here who has his head screwed on correctly. Tokyo is filled with zombie suits and you pay over $1000 USD for a shoebox. Where do I sign?
It has been forever since I have seen anything from you. Great job!
had to comment. great video!! Yea absolutely, i would love a video on why buying a home in japan is not a great idea right now 😅. It sounds like a great idea so im so curious why its not. The hidden fees of japan rentals blew my mind!
Bought your book and we're planning to plan a trip to japan sometime next year and am super excited. its very well done with places and experiences weve never thought/heard of before. thank you!
Amazing video Hannah! I love how informative you make all your vids, the perfect level 💖 Definitely vote yes for the "why not to invest in japan real estate" video!
So informative and really interesting production. Thank you for your time and efforts putting this together.
I always love your videos and the deep thought you put into making them. I love spreadsheets and maps and comparisons and you put it all in one video? I was happily bouncing in my chair. Thank you for sharing information what it's like for foreigners renting in Tokyo. I've seen all these videos as well and wondered how much truth was behind it.
I'm from London and can only say that prices have risen so much that it's really hard to move. Been in my flat for nearly ten years and although my landlady has been kind and only raised the rent once, I'd love to move outside of London and live a bit cheaper. It's just that I could be paying exactly the same outside the city.
I think this is the best video I've seen on Tokyo apartment renting. 👏🏾👏🏾👏🏾
Yay! Thank you!
Wow mucho trabajo! Very well done video I must say. I learned a new trick from earlier this year in Japan. Even if you don’t a booking for an empty restaurant, tell them you have one. Works about 50% of the time.
Current exchange student in Tokyo and working part time for a US country remotely. In a student dorm with private bath and washer. Its around 17m^2. Can add a meal schedule if you'd like and bike parking. Everything comes out to:
Rent: 68000 yen --- 440 USD
Maintenance Fee: 21000 yen -- 135 USD
Meal Schedule 15000 -- 100 USD
Bike Parking: 300 yen -- 2 USD (Not Included)
Utilities: 6000 yen -- 40 USD
So roughly around 110000 yen or 730 USD. That doesn't include groceries as I like to cook sometimes or eat something different. I don't make too much but it is enough to enjoy doing something every weekend for a small trip or save for 1-2 weeks for a big trip. Key money was real annoying like how she said. If you budget it can be achievable to do what you want here. 👍
Okay I’m obsessed with this video. We just moved to Kichijoji in a 3LDK and our landlord made us pay 12 months worth of rent as a deposit for the apartment because we are foreigners. We also paid one month’s worth of rent as key money and one month’s worth of rent to our real estate agent. We are self employed making USD though so we are lucky to have the cash needed to get this rental! Thanks so much for the video though! I learned so much and was living for the spreadsheets tbh haha
Omg TWELVE MONTHS?! I have never heard of that before, I’m so sorry. I didn’t know it could get much worse 😖 Landlords just realllly wanna make sure you’ll be okay to pay rent I guess!
Ummm Kichijoji is rated as one of the most popular suburbs to live in Tokyo. Demand will be crazy plus Gaijin tax 😂🤣
@@CurrentlyHannahyes I was not stoked about it. Hopefully we see that money again one day at the end of the lease term 🙏🏼
You won't see that deposit again.
12 months deposit! The most I have heard of is 6 months. Often the landlord tries to find reasons to not give you all the deposit back, so expect a fight for the money when you leave.
I feel very enlightened by the the spreadsheets haha 😆 Honestly though this was such an amazing deep dive and I'd also love watching a deep dive on buying houses in Japan!
My husband and I live in UR Housing. Setagaya, newish building completed in 2006. UR has been amazing for us no key money or other hidden fees.
My wife and I live in a UR in Chigasaki, and it's worked out very well for us, too. We pay around 130,000 yen/month for a 3LDK apartment with floor heating and 8,000 yen/month for garage parking. Our building is 9 years old, about 10 minutes from the beach on foot, and pets are allowed. And we have an amazing view of Mt. Fuji from nearly all of the rooms. As you say, URs don't charge key money, and our rent has never been raised (we've lived here for 7 years).
I don't need the info but I enjoy listening and love the editing. Keep on doing that.
Renting (monthly existence) vs your first months and setup fees are separate in my mind. But I get that rolling them together keeps it on top of your mind and angry about it longer.
Anywhere in Japan is gonna set you back a lot for all the obnoxious fees to move in. But having lived in Kansai myself I've always assumed Tokyo was more expensive and always had it proved to me.
Considering moving to Okayama now, which is the opposite to Tokyo or Osaka. But so many places are getting expensive now. So I have a feeling we would just buy a house instead of renting.
I keep conversion in my mind at 100:1USD and that makes it seem like your rent is still super high. At least it will be if the yen corrects itself. At current conversion rates, yea sure it's cheap at about $1275/m on 11/21/24. But at the end of the day if you work in Japan and make yen, then spend yen the conversion doesn't matter. If you can afford it then thats awesome.
I just wonder how people who make like you said on average $24kUSD/year can afford places like that + parking.
Great balanced video Hannah.
I found that looking for the sweet spot between distance from, say Yamanote line for price vs space & convenience is always tricky. You could move waaay out into the hills and have a house for the price of rents in Meguro but would have a much longer commute.
I’ve always enjoyed living fairly close to major stations (10-15mins), but just far enough to still have large parks, greenery, river, even a few farms. I pay about ¥140,000 for 60m, but for years was paying around ¥95,000 for a 35m place.
Happy to have more room to spread out and something more modern.
Salary wise I’m well above median thankfully but didn’t need to spend more.
Love the pin in the wall fact. Renting in Sydney we were so careful not to damage the walls because we knew anything other than reasonable wear and tear was going to cost us later.
But in Japan we got a sneak peek of the rental before we moved in. There were pinholes everywhere…. A week later when we moved in, the walls were pristine in preparation for our move in (but the fees did really go towards this).
Because the wallpaper is usually textured and plastic, it is often possible to use the tip of the pin to stretch the plastic a little to cover the pinhole. Someone looking for pinhole damage would be hard pressed to find it. IYKYK
Hannah!! It’s so great to see a video from you again. I can’t wait to come back and watch this when I have time. You’re one of my favorite TH-camrs!!❤
Loved the deep dive!
Loved the editing, and so much info packed in just the first couple minutes wow! Greatly appreciated!
People forget that Japan is apart of the developed world/global north, like much of Europe and North America. You should be expected to get European/North American rent if you want to live out there for some time.
Aaah, nothing like 25 mins of informative, yet sarcastically entertaining video from Hannah 💪
Attempting to even measure affordability of places is a huge task, so kudos for trying! I'll learn if you were wrong by scrolling through the comment section in a sec 👍
I just want to say that out of all things, countries are just borders with history; most of us - if we put aside fear and figure some stuff out - can travel almost anywhere, and make our decisions of where to live and what to do based on what we individually want and need.
I've done a big move once, next year I'm doing another, and cannot wait to explore X countries and get a taste of life and problems everywhere else.
Thanks for the level-headed and well thought out video. I’ve been living in Japan for around 12 years and can certainly empathize with the complaints regarding perceived affordability of rent prices here.
Thank you for sharing very interesting information about renting in Tokyo. I used to stay in Tokyo several times years ago but I never had to worry about renting myself. I value and appreciate the level of detail and interesting topic as well as the interview with the real estate agent Yoh.
I've lived here for almost 3 years and last year I moved to a detached house, it took 5 months to find a good enough place (with the exception of the very first one I saw in Asakusa but that I did miss because of my hesitation). By far, this is the best video I've seen on this topic, explaining to non-Japan residents what are the actual costs, hurdles and challenges of renting in Tokyo.
Very interesting. After watching this I feel much better about my comfortable house with a view of the mountains and nature all around in the Rockies. It's tough out there.
I'm so glad you mentioned the luxury that is small apartments being available. I think it's a really important element that helps prevent people from becoming homeless, or to get out of homeslessness
Your eighth point was spot on. To compare like for like don't only compare the number of rooms but the number of square metres or feet. Typically, higher price per metre prices in aspects such as area desirability, age and condition of building as well as quality of a flat's interior decorative materials and appliances (if included), on-site parking (especially sheltered), proximity to conveniences such as underground stop, shopping, parks and recreation, quality schools, etc.
Wow, the editing on this video was 🔥 🔥 must of taken you ages
so the real issue is that other cities should actually have small single appartments instead of forcuing people to have roommates
That would be ideal, yeah 😅
No. It turned out even more expensive. Look at Hong Kong apartments market.
@@PK-gs3xo Imagine how much worse hong kong would be if they had way less apartments cause they were all huge
@@PK-gs3xoHong Kong has maaaaany more problems that are leading to their situation. Allowing small apartments is not the cause.
A major factor is their tax structure encourages the government to push up land prices well above market so they can sell it off and make a lot of tax money.
NYC and Chicago have studios... what cities were you thinking of?
I was neither angry at the stats or enlightened by the Google sheet. Instead, I spent 5 minutes of the video trying to get rid of the piece of hair on my phone screen that turned out to be the outline of your green screen 😂
Loved the video, super interesting to dive into!
I have not even watched the video yet but as someone who lived in Japan in 98/99, Jan 05 -June 05, Jan 06 - October of 2010 all working on contract and having my visa and place of living sponsored/provided my employer;
As a foreignor especially one that is going to Japan for the first time and does not have a good grasp of thr Japanese language and reading/writing hiragana, some kanji and katakana, you can knock about 70% of those "for lease/rent" apartments off of your availability list because they are not renting to foreignors. 🤷🏿♂️
EDIT: After watching the video, the apartment that they have (her partner is Japanese, they have more access.) is nit anywhere near the average apartment in and aroun Tokyo or even in the edge of Chiba in say Shin Urayasu just 12 minutes away from Tokyo station on the Keiyo line. They have a mansion. An average apartment is tiny, imagine the tinyist 630 sq ft apartment in the U.S. and cut that into 1/4, thats the average
loved this. would love to see you do the follow up on real estate in japan! great stuff
My husband and I lucked out with our UR housing in Koto Ward and pay 150,000 for a 2LDK, 70 square metres. No increases in 6 years. Thank goodness for tenant protection because management changed a few years ago and it is no longer subsidized housing. Similar units now go for 220,000 + fees. Compared to other big cities, I feel like you can be frugal and still live a pretty good life here (eating out and transport are accessible no matter your budget) The catch is that as a foreigner you are always at the whim of your visa and your buying power outside Japan is currently plummeting.
thanks Hannah! this was very informative! the rights, the hidden fees especially! I don't really mind the statistics because it can really vary depending on the area, so thank you so much!
Would love to hear your cons on why its bad as someone actively looking for a property there right now! :) Super informative video btw and really adds that perspective that a lot of foreigners need to hear i think
I live in Jingumae, Shibuya in a pretty small place about 5 minutes from two major stations for ¥77000. I moved during the pandemic so I got a free month rent with no key money or deposit. My salary is a bit above the average so I am very comfortable. The place is small but cute with two windows and no buildings in front of them. I have only one neighbor on a side of my unit so I think I have one of the best places in Tokyo honestly. Great video!
Yes, please do a video about home ownership ( not an Akiya) as it relates to being financially responsible--i.e: personal finances; not so much for "investors" that want to flip them or of be a landlord
Thanks for all the great information! I would certainly like to watch the "why not to buy a house in Japan" video!
Good review. The houses will be just as interesting, thank you!
Had a very similar experience when moving from AU to work in JP. The advertised monthly rent was so reasonable for great places, but the up-front costs (non-advertised) were insanely high coming out collectively to about at minimum 6-months (sometimes 10-months) worth of rent(!) We had to heavily narrow our search by roughly accounting for the up-front cost based on a proportion of the rent and area. I wish they could just tell us it would make things a lot more transparent... also yes, the key money and gratuity is absolute BS. We had one place (out of our range) call back when we had emailed that we were going to pass and said they would waive the fee. Just shows it really can't be that important. Must say the property agencies/management are a lot nicer here though and feel like actual human beings rather than the vampires in AU.
Heck of a deep dive! Well done! Was actually super interesting. Median rental price down here in Perth is $600au per week for a house, and $550per week for units. Thankfully I'm a home owner since 2009, so average mortgage is $436,393au. Average wage is also $108,000au, but i'm no where near that because i'm not in the mining sector. The mining sector sings our wages soooooooooo far over average.
I'm always amazed at how much effort you put in each of your videos.
Looking forward to the full home tour.
p.s Would love a video about "why buy real estate investment is a bad idea in Japan"
I've been living in Tokyo and was below median salary until fairly recently. Never had a problem with living in a small space and I found it pretty affordable to live here up until I got married and started a family. Now the lack of space is seriously burdensome, and I'm not thrilled about buying a house cause 1. I don't know where would be a good permanent location with factors like kid's school, future jobs, etc. 2. They seem to cost a hell of a lot for something that is still pretty small. and 3. it's not an investment so I don't really know if the renting is just throwing your money away vs owning type argument holds here.
Would definitely like to see a video from you exploring this.
Great and informative video. Would love to see that video on purchasing a house that you mentioned and what the hidden costs, rules, and pitfalls are in doing that in Japan.
Also, you mentioned Osaka cost for rental early in the video, curious if you could comment on difference in average costs for renting in different major cities across Japan?
Please keep up the great content! ❤
Hannah, I would love to hear your thoughts on all the super cheap homes in Japan that show up on IG cause it takes every bit of my willpower NOT to just buy a home over there. Great info in this vid btw!
It seems like everyone is keen for a video on that topic! And so true, the houses for $5000 are hard to resist haha
Super interesting, loved the video!
Fantastic vid! Would love to see you do one on purchasing real estate.
Great video - very informative for someone thinking about living in Japan. Thank you!
I live on the East Side of Tokyo, kita-senju. The East Side is overall cheaper than the West Side. I'm 10 minutes from the station. Good sized apartment and paying 7.5 mon yen (around $500). That said, no elevator, but rather I walk up and down four flights of stairs. Personally, I'm good with that. Same apartment with an elevator would be twice price.
Good video. One thing that I should mention is that Meguro is an upper middle class neighborhood and 30% more expensive rent than UENO which is not a bad place to live. Tokyo is huge and very accessible by trains so it's considered one of the best value for money cities in the world. You can still find apartments for sale for US 100K. I live in NYC, there are no apartments for sale in Manhattan for less than 300K even for a one room studio.
Yoh seems lovely! Wonderful and informative video Hannah! Love these sorts of videos
Very informative video and congrats on the new apartment.
*cries in millennial living in Sydney 🥲
Great video Hannah! I would totally rather live in a tiny 1LDK/studio than live with my parents or try to find people to rent with. Every city seems to have their own problems. Why is housing so hard atm!
It’s so rough out there these days 🥲
Because people treat housing as a commodity which should never be the case in a normal and healthy society.
You will own nothing and be happy
13:15 We've been rejected several apartments being Japanese national plus foreigner. Reasoning was mostly about community communication required and the locals might be uncomfortable with the presence of a foreigner.
Hi Hannah the big plant in your unit is a heliconia, or crabs claw , also in the small planter pot try a decorative succulent / cactus, also some liquid fertiliser, on your plants ,and they will have a nice healthy glow , to grow and grow
I’m a student in London and I can’t afford to stay here after graduation, it’s a real crisis here. Only rich people live in apartments, and share houses are generally our only option and tend to be falling apart, my last place had holes in the floor and we had to try to take the landlord to court. The rent for these places is ridiculously high too, to the point people on minimum wage can’t afford even these houses. The median salary for london is ridiculously high because a lot of it includes business people who commute in for work, not people who actually live here and are trying to just survive. It’s really bleak here.
19:08 I’m originally from Hong Kong, and I can help explain the income needed for rent compared to the median salary.
First, a 40m sq flat is considered large in Hong Kong, let alone a 50m sq one. Flats of this size typically have 2 to 3 bedrooms and are designed for families. Since most people in Hong Kong live with their families, the average flat size of 40m sq likely reflects this norm.
For single individuals earning the median salary, affording a 40m sq flat is unrealistic. They are more likely to live with their parents or in subdivided flats, sections of a larger apartment, that cost around HKD 4 to 8k a month, depending on the location. Alternatively, they may live in public housing provided by the government.
For an average family, both spouses typically work, and their adult children in their 20s often contribute to the household income. This could explain why the calculation of “3x salary” should account for family income rather than individual earnings.
This also underscores the stark wealth gap in Hong Kong. With a high Gini coefficient, the disparity between the rich and poor is extreme, resulting in very different living standards across the population.
Thanks for helping to set people straight, there's so much misinformation out there! For me, coming from LA to Tokyo as a software engineer, I am paying a lot more in percentage of my salary for rent now than I used to - and for half the size (~38sqm 1LDK in the central wards, pet OK, it's nice but nothing crazy). I roll my eyes when I see those 'it's amazingly cheap to live in Tokyo!' apartments sensationalized on social media that are prob like
I imagine it's just an outlier to have a software engineering salary in LA, which means you were paid very very well(relatively speaking). Everything else is just regression to the mean.
Though I might be wrong, and it might actually be easy enough to be a software engineer in LA and have wages be that high forever.
Very interesting to hear your perspective 🤔
If you're a software engineer in the US on the West Coast, depending on how experienced you are, you are in the top 10% of earners nationwide, if not top 5% or better. Of course moving to a country with lower average salary for the same industry is going to increase your housing costs. It's a factor you have to take into consideration when you choose whether to move abroad.
Actually with tax of 40% in Australia, that 90k after tax is actually earning 150k salary, not many people earn 7.5K a month even in Australia. So affordable to a smaller percentage of people. Our average income is actually around 20-30K low class jobs, 50-60K uni jobs and 50-100K for uni job for managers after tax for full time jobs. The difference of pay between jobs are huge. Also most Aussies are used to renting homes rather than apartments with only 50m but the rent per house is about 700 a week 2 hours from Brisbane in Queensland.
It's 16% up to 40k then 30% up to 135k
Amazing video as always! Now you got me curious on how would investing real estate in Japan look like
Great video Hannah!!! 👏
Great video!! Thank you, very insightful!
THANK YOU! as someone from 3rd world (PH), It's always been a pet peeve when someone from US or another country says sO ChEaP hEre but obviously showing hire end(for locals) stuff
Please please please do a video about buying a place in Japan. Your realistic take on what it's actually like to do this would be welcome! My Japanese wife and two kids are considering moving to Japan... and thinking of buying a place. Would love to know if things like air bnb are affecting the housing market there and what gotchas we have to consider.
Thank you Hannah for the video ! Really informative as I live in Tokyo, is good to know some things that we can do if the landlord requests anything. (even though the beginning phase is challenging). May I ask for the excel file on the rent in Tokyo in each city? it'll be really helpful.
For many homes only being 35k usd I’d say just buy it outright. Even if they don’t give foreigners a mortgage, that kinda money you can just pay cash for in full. The full price of the home is the cost of a down payment.
Always tough to really break down affordability and prices. This is a good overview.
Please make a similar video about buying in Japn/Tokyo - its such a hot topic rn, perhaps even more so than renting imo, tysm
I bought a 60m2 apartment in Shinjuku-ku in 2008 and sold it for roughly the same amount in 2020. You can't make money on real estate, but you can sure save rent. 144 months times ¥250000 is a lot of beer. And the bank interest is basically zero.
So happy you couldn't be another home flipper.
I consider key money as upfront rent payment. One advantage for Japanese rent contract is that it doesn’t require early termination fees like in the US, perhaps because landlord collects key money upfront.
As someone who currently lives in Philadelphia, where the average portion of a person's income spent on rent is somewhere around 40% (we are America's poorest major city with the highest poverty rate and a median income that remained stagnant for nearly 40 years), and as someone who wants to move to Japan and has looked at the median income compared to the median apartment price in the areas where I would like to live... it would be a lateral move, at best, for me financially speaking. Thank you for providing context, and for reminding everyone with American dollars that Japan is cheap only so long as they participate in their economy purely as a consumer.and not as a resident or laborer.