Many retirees dream of cheap rural Japan. Here's an honest breakdown of retirement costs — healthcare, visa, pension income, and property maintenance.
For foreigners planning to move to rural Japan on a budget, an akiya (vacant house) can be an attractive option, with median prices ranging from ¥500,000 to ¥2 million (approximately $4,500 to $18,000 USD) compared to ¥20 million to ¥50 million (approximately $180,000 to $450,000 USD) for a new construction. Retiring in Japan can be a cost-effective and culturally enriching experience, with a lower cost of living index of 74.4 in rural areas compared to 94.2 in urban areas like Tokyo. The overall cost of a Japanese country life, including an akiya purchase, living expenses, and healthcare, can be estimated at around ¥2.5 million to ¥5 million (approximately $23,000 to $45,000 USD) per year for a single person.
Understanding Akiya Prices and Availability
The prices of akiya vary significantly depending on the location, with the lowest prices found in rural areas such as Akita, Aomori, and Iwate prefectures, where the median price is around ¥300,000 to ¥500,000 (approximately $2,700 to $4,500 USD). In contrast, urban areas like Tokyo and Osaka have much higher prices, with a median price of around ¥5 million to ¥10 million (approximately $45,000 to $90,000 USD). According to the Japan Ministry of Land, Infrastructure, Transport, and Tourism (MLIT), the number of akiya has been increasing over the years, with an estimated 8.5 million akiya in Japan as of 2020.
Akiya Prices by Prefecture
The following table shows the median akiya prices by prefecture:
| Prefecture |
Median Akiya Price (¥) |
Median Akiya Price (USD) |
| Akita |
350,000 |
3,200 |
| Aomori |
300,000 |
2,700 |
| Iwate |
400,000 |
3,600 |
| Tokyo |
5,000,000 |
45,000 |
| Osaka |
6,000,000 |
54,000 |
As shown in the table, the median akiya prices in rural prefectures are significantly lower than those in urban prefectures.
Living Expenses in Rural Japan
The cost of living in rural Japan is generally lower than in urban areas. According to the Statistics Bureau of Japan, the average monthly living expenses for a single person in rural areas are around ¥150,000 to ¥250,000 (approximately $1,400 to $2,300 USD), compared to ¥250,000 to ¥400,000 (approximately $2,300 to $3,600 USD) in urban areas. The main living expenses in rural Japan include:
- Food: ¥50,000 to ¥100,000 (approximately $450 to $900 USD) per month
- Transportation: ¥20,000 to ¥50,000 (approximately $180 to $450 USD) per month
- Utilities: ¥10,000 to ¥30,000 (approximately $90 to $270 USD) per month
- Healthcare: ¥10,000 to ¥30,000 (approximately $90 to $270 USD) per month
These expenses can vary depending on the individual's lifestyle and location.
Rural vs Urban Living Expenses
The following table compares the average monthly living expenses in rural and urban areas:
| Expense |
Rural (¥) |
Urban (¥) |
Rural (USD) |
Urban (USD) |
| Food |
75,000 |
120,000 |
680 |
1,100 |
| Transportation |
30,000 |
60,000 |
270 |
540 |
| Utilities |
20,000 |
40,000 |
180 |
360 |
| Healthcare |
20,000 |
40,000 |
180 |
360 |
As shown in the table, the average monthly living expenses in rural areas are lower than those in urban areas.
Retirement Healthcare in Japan
Japan has a well-regarded healthcare system, with a high life expectancy of 87.2 years. According to the Bank of Japan, the average annual healthcare cost for a retiree in Japan is around ¥200,000 to ¥500,000 (approximately $1,800 to $4,500 USD). This cost can be partially covered by Japan's national health insurance system, which costs around ¥20,000 to ¥50,000 (approximately $180 to $450 USD) per month.
Healthcare Costs by Age
The following table shows the estimated annual healthcare costs by age:
| Age |
Annual Healthcare Cost (¥) |
Annual Healthcare Cost (USD) |
| 60-64 |
150,000 |
1,400 |
| 65-69 |
250,000 |
2,300 |
| 70-74 |
350,000 |
3,200 |
| 75 and above |
500,000 |
4,500 |
As shown in the table, the estimated annual healthcare costs increase with age.
Choosing the Right Akiya
When choosing an akiya, it is essential to consider factors such as location, size, and condition. Akiya can range from small, rustic homes to larger, more modern houses. According to the MLIT, the average size of an akiya is around 100 to 200 square meters. It is recommended to work with a local real estate agent who has experience with akiya sales and can provide guidance on the purchasing process.
For those interested in exploring akiya options, we recommend visiting our website at /en/akiya for a wide range of property listings and expert advice on buying an akiya in Japan.
Key Takeaways
- The median price of an akiya in rural Japan is around ¥500,000 to ¥2 million (approximately $4,500 to $18,000 USD), compared to ¥20 million to ¥50 million (approximately $180,000 to $450,000 USD) for a new construction.
- The cost of living in rural Japan is generally lower than in urban areas, with average monthly living expenses of around ¥150,000 to ¥250,000 (approximately $1,400 to $2,300 USD) for a single person.
- The estimated annual healthcare cost for a retiree in Japan is around ¥200,000 to ¥500,000 (approximately $1,800 to $4,500 USD), which can be partially covered by Japan's national health insurance system.
- When choosing an akiya, it is essential to consider factors such as location, size, and condition, and to work with a local real estate agent who has experience with akiya sales.
- The overall cost of a Japanese country life, including an akiya purchase, living expenses, and healthcare, can be estimated at around ¥2.5 million to ¥5 million (approximately $23,000 to $45,000 USD) per year for a single person.
Frequently Asked Questions
What are the requirements for purchasing an akiya in Japan?
To purchase an akiya in Japan, foreigners will need to meet certain requirements, such as having a valid visa and opening a Japanese bank account. It is recommended to work with a local real estate agent who can provide guidance on the purchasing process. Additionally, foreigners may need to provide proof of income and assets to secure financing. The exact requirements may vary depending on the prefecture and the type of visa.
How do I find an akiya in rural Japan?
There are several ways to find an akiya in rural Japan, including working with a local real estate agent, searching online property listings, and visiting rural areas in person. It is essential to research the local market and understand the prices and conditions of akiya in the area. Additionally, it is recommended to consider factors such as distance to amenities, public transportation, and healthcare facilities.
Can I finance an akiya purchase in Japan?
Yes, it is possible to finance an akiya purchase in Japan, but the options may be limited for foreigners. Some Japanese banks and financial institutions offer mortgage loans to foreigners, but the interest rates and terms may vary. It is recommended to work with a local real estate agent who can provide guidance on financing options and to research the different types of mortgage loans available.
What are the ongoing costs of owning an akiya in Japan?
The ongoing costs of owning an akiya in Japan include property taxes, insurance, and maintenance costs. Property taxes in Japan are relatively low, ranging from 0.1% to 0.3% of the property's value per year. Insurance costs may vary depending on the location and condition of the property. Maintenance costs can also vary, but it is recommended to budget at least ¥50,000 to ¥100,000 (approximately $450 to $900 USD) per year for maintenance and repairs.
Can I rent out my akiya in Japan?
Yes, it is possible to rent out an akiya in Japan, but there are certain regulations and requirements that must be met. For example, landlords are required to register with the local government and to provide a written rental agreement. Additionally, there may be restrictions on the type of rental, such as short-term rentals or vacation rentals. It is recommended to work with a local real estate agent who can provide guidance on the rental process and to research the different types of rental agreements available.