The short answer is partly yes, partly no. 

Based on the data presented in our recent posts on parts of Tokyo that are getting pricier and areas that are becoming more affordable, we looked at how the capital of Japan lines up with its global counterparts. The results were rather surprising.

Note: The findings for Tokyo are based on data on the average rent (when signing a lease), in Japanese yen, of a simple one-bedroom apartment (25 sq m) in the main wards of Tokyo over the past 12 months. Data source: Akasaka Real Estate.

Tokyo remains more budget-friendly than most

Out of the Big Five that include the bustling hubs of London, New York City, Sydney and Hong Kong, Tokyo came out tops in affordability for tenants. 

While rents have risen in some Tokyo neighbourhoods, the increases have been relatively small, and other parts of the prefecture have seen some welcome dips. 

Even super-popular areas like Shibuya and Shinjuku seem to have had only minor elevations in average rents over the past 12 months or so, meaning that it remains possible to find accommodation that doesn't break the bank.

For residents happy to live in some of the slightly more outlying zones such as Katsushika, Nakano and Itabashi, apartments can be had for a very reasonable rate indeed. It gets even more economical if you are comfortable renting in buildings that are 20 or 30 years old (still fairly new by international standards, but unpopular among many Japanese people).

Overall, rents in Tokyo still seem to be sitting well below the levels seen before the global financial crisis of 2007/2008.

Hovering around the housing stress threshold

On a modest monthly salary of JPY 250,000 or more, most expats find they can rent a decent, if compact, apartment in Tokyo.

In this income bracket and above, it is usually not necessary to pay more than 30% of your salary towards rent, meaning that it is possible to stay on the safe side of the housing stress threshold — as long as you aren't renting fancy pads in the most popular and pricey neighbourhoods.

Paying more than 30% can increase a person's risk of experiencing financial difficulty, but it appears commonplace to fork out 40% or more to rent a (very) humble abode in Sydney, New York City, London and Hong Kong.

While data differ, and some sources will tell you that you're looking at the same sort of outlay in Tokyo, our figures — and experience — suggest otherwise.

Too little, too late in London

Private rents in London went up by an average of just 0.4% last year, significantly less than the 2% raise experienced in the rest of the United Kingdom.

As in Tokyo, rents for flats actually dropped slightly in a number of neighbourhoods, but with the dip translating to savings of just a few pounds a month in the British capital, most tenants are far from rejoicing.

In fact, many are looking to relocate to less pricey parts like Glasgow and Manchester, in the hopes of easing their budgetary burden. It seems that rental prices maxed out a while ago, and for many, it's a monthly struggle. 

Tokyo's rents, arguably, have yet to rise to such unsustainable levels — if they ever will.

Concessions in New York City 

Renters in the Big Apple are also paying somewhat lower rents thanks to a price dip over the past year. 

Average rents came down by close to 4% — though in the Bronx, rents are apparently on the up ... and up ... and up.

As was the case in London, tenants in many parts of New York City seem to have stretched their budgets to the limit, and prices are necessarily inching nearer the earth.

To sweeten new lease deals, landlords are starting to offer various discounts and concessions, such as x months' free rent, which helps to bring down the overall financial outlay for lessees. Occasionally, this sort of thing is also seen in Tokyo — notably when renting through public agency Urban Renaissance.

Discounts and decreases aside, New York City remains one of the most expensive bits of the globe to inhabit, and modest apartments seem to go for quite a bit less in Tokyo (though, it should be said, you do need to know where to look).

All-time highs in Hong Kong

Meanwhile, over in the gateway to the Chinese mainland, rents remain miles through the roof. 

Rents soared to unprecedented levels last year, entrenching Hong Kong's reputation as one of the most expensive rental markets in the world. 

While many jobs in the densely populated city might offer good earning potential, residents can expect to keep forking out large chunks of their salaries to have a tiny spot to call their own. 

Sydney simmering

After a bit of a lull, rents in Sydney are set to rise once again in response to shifts in the housing market, with fairly fierce competition predicted for the small pool of available properties.

The rent increases are not expected to be consistent across the suburbs, with certain areas already seeing incredible spikes and others being less severely impacted. 

When it comes to long-term accommodation, the southern city stays one of the highest priced in the world, perhaps almost on par with Hong Kong.

Sharing the burden? Not in Tokyo

A notable difference between Tokyo and the other big cities is the relative lack of shared accommodation.

While sharing a house or flat is the norm for many tenants in London, New York City and Sydney, co-living with "randoms" is much less common in the Japanese metropolis. 

Though many apartments may be comparable to shoeboxes in size, occupancy here is largely single, allowing for greater privacy and independence. At the same time, the option to save a bit of cash by co-habiting is limited. 

For those looking into co-living, this introduction to share houses in Tokyo may be worth a read.

Disclaimer: The information in this article is intended to provide a rough interpretation only, and should in no way be relied on for decisions of any kind, property or otherwise.

By Carey Finn

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