Wondering where to stay in Tokyo on a budget? We’ve got you covered!
Japan’s capital is a city with extremes as you can find traditional neighborhoods on the east side of the city while extreme modernity is on the west side of the city.
And this is also reflected in prices.
While Tokyo and Japan, in general, may have a reputation for being expensive, there are plenty of ways to explore this vibrant metropolis without breaking the bank.
From sampling delicious street food to visiting free museums and parks, Tokyo has plenty of budget-friendly activities and experiences to offer.
Whether you’re a backpacker or a budget-conscious traveler, Tokyo is a city that you can enjoy without having to spend a fortune.
And with those bucks saved on accommodations, you have extra money to spend at one of the many fantastic attractions the city has to offer.
So, we’ve come up with what we believe are the best areas to stay in Tokyo when you’re travelling on (a stricter) budget so that you can make the most of your somewhat limited time.
Each area has its own atmosphere, advantages, and disadvantages, which we will detail in the following paragraphs.
At the end of this article, you will find a map highlighting all the areas we recommend as well as the main attractions of the city.
Let’s start with an overview that allows you to quickly analyze which part could be the best option.
Now, let’s dive into our top recommendations!
The best areas to stay in Tokyo on a budget are Asakusa, Ueno, Shinjuku, Shibuya, Ikebukuro, and Koenji.
Generally speaking, the traditional areas, such as Asakusa and Ueno, offer far more affordable accommodations, however, these areas lack a proper nightlife scene.
The popular and bustling areas of Shinjuku and Shibuya are the top choices, but as there is so much demand, it’s more difficult to find a hotel that suits your budget and is not fully booked yet.
Luckily, Tokyo has an excellent public transport system and when you’re located near a station that’s connected to the so-called Yamanote Line, you can travel easily to the major attractions while staying at an affordable area.
Below, we’ll dive into each of these recommended areas in more detail to help you decide which one is best for you.
Tip: Tap the area name to jump straight to that section of the article for more information!
Asakusa – Historic neighborhood is home to the iconic Senso-ji Temple and offers plenty of budget-friendly accommodation options, including hostels and guesthouses
Ueno – Popular neighborhood that is home to several museums, parks, and temples. The area is well-connected to the rest of the city via public transport and has plenty of budget-friendly accommodation options.
Shinjuku – Bustling neighborhood that offers plenty of budget-friendly accommodation options, including hostels, capsule hotels, and budget hotels. The area is known for its nightlife, shopping, and entertainment, making it a great option for budget-conscious travelers looking for a lively atmosphere.
Shibuya – Trendy neighborhood that is known for its fashion, shopping, and entertainment. While there are some high-end hotels in the area, there are also plenty of budget-friendly accommodation options.
Ikebukuro – Bustling neighborhood that offers plenty of budget-friendly accommodation options, including hostels and budget hotels. The area is known for its shopping, entertainment, and lively atmosphere.
Koenji – Bohemian neighborhood that is popular among young people and artists. The area offers plenty of budget-friendly accommodation options, including guesthouses and budget hotels. Koenji is also known for its vintage shops, music venues, and street food.
One of the most popular areas to stay in Tokyo on a budget is Asaka.
First of all, and this is quite important, Asakusa offers a good variety of budget-friendly accommodation options, including hostels, guesthouses, and budget hotels.
You can easily find reasonably priced places to stay, especially if you book in advance.
Asakusa has plenty of affordable dining options, including street food stalls, local eateries, and budget-friendly izakayas.
You can try traditional Japanese dishes without breaking the bank.
Asakusa is home to Senso-ji Temple, one of Tokyo’s oldest and most famous temples.
The entrance to Senso-ji is free, allowing you to explore the temple grounds and experience the vibrant atmosphere of Nakamise Shopping Street without spending money.
Adjacent to Asakusa is Sumida Park, a scenic and spacious park along the Sumida River.
Enjoy a leisurely walk or have a picnic while taking in views of Tokyo Skytree.
Nakamise Shopping Street leading to Senso-ji Temple is known for its traditional shops selling souvenirs, snacks, and trinkets.
While some items may be touristy, you can find affordable traditional goods.
Most importantly, Asakusa is well-connected by public transportation, making it easy to explore other parts of Tokyo.
When visiting Tokyo, in order to travel around without much hassle, you must take advantage of the sophisticated public transport system.
The Asakusa Station serves the Tobu Skytree Line, Ginza Line, and Asakusa Line, providing convenient access to various attractions.
In general, Asakusa has a more traditional and laid-back atmosphere compared to some of the bustling business districts.
Just keep in mind that you won’t find much nightlife here.
For that, you have to travel or stay at other areas.
Ueno is yet another popular area that provides a range of budget-friendly accommodation options, including hostels, guesthouses, and budget hotels.
It’s also home to Ueno Park, a large public park that houses several museums and cultural institutions, including the Tokyo National Museum and Ueno Zoo.
While some of the museums may charge admission, the park itself is free and offers a beautiful space for walking, picnics, and relaxation.
Ameya-Yokocho, or Ameyoko, is a bustling shopping street near Ueno Station known for its vibrant atmosphere and diverse range of shops.
Here, you can find reasonably priced clothing, accessories, fresh produce, and street food.
Ueno offers a variety of affordable dining options, from street food stalls to casual eateries.
The area around Ueno Station has numerous restaurants where you can enjoy a meal without breaking the bank.
You’re located in the older parts of Tokyo and several historical attractions are nearby, including the Ueno Toshogu Shrine
In addition to the Tokyo National Museum, Ueno is also home to other cultural institutions, many of which offer free or discounted admission on certain days.
One of the major advantages of Ueno is the fact that it’s a major transportation hub with Ueno Station connecting to various train lines, including the Shinkansen.
This makes it super easy to access other parts of Tokyo and even other cities in Japan.
Ueno Park is also a popular spot for cherry blossom viewing during spring. While hanami (cherry blossom viewing) can attract crowds, it’s a beautiful and cost-free activity.
This area is ideal for the budget-conscious traveller as there are plenty of affordable accommodations and restaurants nearby.
But in the evening, Ueno is far from bustling.
So far, the recommended areas offer plenty of affordable accommodations and are located in the calmer parts of the city.
Shinjuku is the exact opposite.
The area is known for its nightlife, shopping, and entertainment, making it a great option for budget-conscious travelers looking for a lively atmosphere.
While it is often associated with a bustling business district and upscale entertainment, it also offers budget-friendly options for travelers.
Shinjuku has a range of accommodation options to fit different budgets.
There are luxury hotels, but you can also find budget hotels, hostels, and capsule hotels that offer affordable stays.
For dining options, there are plenty of budget-friendly options.
Exploring areas like Omoide Yokocho and Shin-Okubo (Korea Town) can lead you to affordable and delicious meals.
But the main reason why should choose to stay near or at Shinjuku is for its nightlife scene.
If you’re not into nightlife, then it’s not worth finding accommodation that fits your budget in this part of the city.
Because you have far more options in calmer parts.
But if you do want to explore Tokyo at night, it’s worth searching an accommodation in this somewhat upscale part of Tokyo that fits your budget.
Shibuya is a vibrant and popular district in Tokyo, known for its bustling atmosphere, trendy fashion, and iconic pedestrian scramble at Shibuya Crossing.
It’s mostly associated with upscale shopping and entertainment, but as it’s possible to find affordable accommodation here, we listed this area too.
Just keep in mind that it’s challenging to find something that fits the budget-conscious traveler if you don’t book in advance.
If you manage to find something that fits your wallet, you’re in for a treat.
Shibuya is namely one of the most popular areas in all of Tokyo among tourists.
You can find fashionable boutiques and department stores, a huge food scene and proper nightlife.
As you’re travelling on a budget, make sure to enjoy street food to the fullest, which can easily be found here.
The Shibuya River Area, including Daikanyama and Nakameguro, offers a more relaxed atmosphere with boutiques, cafes, and scenic riverbanks, which is great when you want to escape the hustle and bustle.
You are of course perfectly connected to public transport.
The JR Yamanote Line, subway lines, and buses provide convenient and affordable transportation options to get you to other parts of the city.
If you want to stay in one of the most bustling parts of Tokyo, this is the place to be.
Make sure to book in advance and be aware that things are just a bit pricier here compared to the older parts of Tokyo.
Ikebukuro is a bit of an of-the-beaten-path area in Tokyo and quite an interesting area to stay in when travelling on a budget.
The area offers plenty of affordable accommodations.
It’s mostly a shopping and entertainment district and that’s where it gets interesting.
The food scene and nightlife scene are more affordable than the more common and popular areas.
Even the large shopping centers, department stores, and discount shops offer great-priced goods.
Ikebukuro is home to Sunshine City, a large entertainment and shopping complex.
While some attractions within Sunshine City may have admission fees, there are also free areas to explore, such as the observation deck with panoramic views of Tokyo.
But of course the downside is that you’re located further away from the major attractions and popular areas.
Luckily, you’re in Tokyo and public transport is simply magnificent.
The Ikebukuro Station is a major transportation hub, making it easy to access different parts of Tokyo and beyond.
The train ride just takes a bit longer.
If you’re willing to make that compromise, you can save quite some bucks by choosing Ikebukuro as your base during your travels in Tokyo.
Koenji is a bohemian neighborhood that is popular among young people and artists.
The area offers plenty of budget-friendly accommodation options, including guesthouses and budget hotels.
Koenji is also known for its vintage shops, music venues, and street food, making it a great option for budget-conscious travelers looking for a unique cultural experience.
But we have to be honest, it’s located much further away from the touristy heart of the city.
That’s why we believe that young travallers who are looking for something unique would appreciate this upcoming part of Tokyo.
Those who appreciate vintage stores, bars with live music, street art, independent theatres, and one-of-a-kind cafes.
Koenji is just a short train ride from Shinjuku, one of Tokyo’s major transportation hubs.
From there, you can travel easily to every major city highlight.
Koenji is not everyone’s cup of tea, but it sure is a unique, budget-friendly part of Tokyo.
Note: If you’re visiting in August, you might catch the Koenji Awa Odori Festival. This lively and traditional dance festival is one of the largest in Tokyo and is free to attend.
