Greater Tokyo rents hit record as more tenants weigh homeownership says SUUMO
Average monthly rent in Greater Tokyo has reached a record high, while more than one in five recent tenants considered buying or building a home before deciding to rent, according to a new survey by Recruit's SUUMO Research Center.
Photo by Ryo Yoshitake on Unsplash
Published on October 22, 2026, the findings highlight how purchase costs, household finances and life-stage decisions are shaping the choice between renting and owning.
Greater Tokyo Rents Reach a Survey Record
Average monthly contracted rent reached JPY 96,908 in fiscal 2025, up JPY 834, or 0.9%, from the previous year. This was the highest level since the survey began in fiscal 2005.
The modest annual increase suggests a continuing rise in rental costs rather than accelerating inflation.
The trend also varied geographically. Contracted rents declined in Tokyo's 23 wards but increased in suburban Tokyo and the neighboring prefectures of Kanagawa, Saitama and Chiba.
The research surveyed people who moved into rental housing between April 2025 and March 2026. Its findings reflect rents reported by recent tenants, not advertised asking rents or all existing leases.
Why Prospective Homebuyers Are Choosing to Rent
The survey found that 21.3% of tenants had considered purchasing or building a home before renting.
That proportion rose to 27.1% among households earning JPY 6 million to JPY 8 million annually and 30.2% among those earning at least JPY 8 million.
Among respondents who considered homeownership, three reasons stood out:
27.1% postponed buying until a later personal or family life event.
25.1% cited rising property prices or construction costs.
23.8% wanted the flexibility to move as their life stage changed.
Respondents could select multiple reasons.
These findings suggest that affordability is influencing housing decisions, but not always through an inability to purchase.
Some households are delaying ownership until their circumstances become clearer. Others face higher acquisition costs or prefer to retain the flexibility of renting.
For property owners and investors, this distinction matters. Rental demand includes households considering homeownership, not just those committed to renting long term.
Greater Tokyo's rental record and homeownership findings therefore reveal two connected pressures: renting has become more expensive for new tenants, while purchasing costs are influencing when some households choose to buy.
The survey cannot establish how many prospective buyers have been priced out of ownership. It does show that renting can be a deliberate interim decision, shaped by financial considerations and the timing of major life events.
Further Reading:
SUUMO Research Center - Greater Tokyo Rental Contract Tenant Survey (Fiscal 2025) (Japanese only)
