When most people think of Japan, they picture expensive cities, $200 Kobe beef, and tiny hotel rooms at astronomical prices. The reality? Japan is one of the most affordable developed countries in the world — and our data proves it.
Japan's BPS: Surprisingly Low
Japan's Burger Parity Score consistently sits below the global average, placing it among the cheapest G7 nations. Here's how Japan prices compare to the US:
- 🍔 Big Mac — $3.07 (vs $5.69 in the US, 46% cheaper)
- ☕ Starbucks Latte — $3.65 (vs $5.25, 30% cheaper)
- 🎬 Netflix — $9.99 (vs $15.49, 35% cheaper)
- 🚗 UberX 5km — $7.20 (vs $12.50, 42% cheaper)
Why Is Japan So Affordable?
Several factors contribute to Japan's unexpected affordability:
- Weak yen: The Japanese yen has depreciated significantly against the dollar since 2022, making everything cheaper in USD terms.
- Deflationary culture: Decades of low inflation mean prices haven't risen the way they have in the US or Europe.
- Intense competition: Japan's domestic market is hyper-competitive, keeping consumer prices low.
- Efficient supply chains: Japan's logistics infrastructure is world-class, reducing distribution costs.
The Exception: Housing
Tokyo housing can be expensive, but even there, prices are more reasonable than NYC, London, or Sydney when measured per square meter. Outside Tokyo, housing costs drop dramatically.
Japan defies the "rich country = expensive country" assumption. With a weak yen and deflationary mindset, it offers first-world quality at developing-world prices.
Should You Move to Japan?
If you earn in USD or EUR, Japan offers exceptional value. Our Japan vs USA comparison shows product-by-product breakdowns. For digital nomads, the combination of fast internet, safety, and low prices makes Japan an increasingly popular base.