Where To Stay On A Budget In Tokyo - 6 Affordable Options
Wondering where to stay on a budget in Tokyo?
I’ve visited this city several times when I lived in Southeast Asia and therefore I dare say that I can give a good answer to this question.
Japan’s capital is a city of contrasts, where the east side offers charming traditional neighborhoods and the west dazzles with cutting-edge modernity.
Despite Tokyo—and Japan as a whole—being known for its higher costs compared to other Southeast Asian countries, there are plenty of budget-friendly ways to experience this unique city without breaking the bank.
From savoring delicious street food to exploring free museums and parks, Tokyo is full of budget-friendly activities and experiences.
Whether you’re a backpacker or a traveler keeping a close eye on expenses, Tokyo proves that you don’t need to spend a fortune to enjoy this dynamic city.
By saving on accommodation, you can allocate more of your budget to experiencing Tokyo’s incredible attractions.
To help you make the most of your time and money, we’ve rounded up the best areas to stay in Tokyo for travelers on a stricter budget.
Each area comes with its own unique advantages and drawbacks, which we’ve conveniently summarized after each section.
Comparing those summarized sections will definitely come in handy to pick the area that suits you the most.
Let’s dive into our top recommendations!
What are the best areas to stay in Tokyo on a budget?
The best areas to stay in Tokyo on a budget are Asakusa, Ueno, Shinjuku, Shibuya, Ikebukuro, and Koenji.
Generally, the more traditional areas, such as Asakusa and Ueno, offer much more affordable accommodations. However, these areas lack proper nightlife and a certain level of buzz.
The popular and lively areas of Shinjuku and Shibuya are the best options for staying in Tokyo, but because there is so much demand, it’s so much harder to find a hotel that fits a tighter budget.
Accommodations that offer affordable rooms are often fully booked, unless you make a reservation in advance.
But here’s the good part: Tokyo has an excellent public transportation system, and if you are near a station that is connected to the so-called Yamanote line, you can easily travel to the main attractions while staying in an affordable area.
That gives you plenty of great options to fully enjoy the city without spending a fortune on a hotel room.
In the following paragraph, you can find an overview of each recommended neighborhood with a brief description. Click on the neighborhood and you will go directly to that part of the article.
1. Asakusa – This historic neighborhood is home to the iconic Senso-ji Temple and offers plenty of budget accommodation options, including hostels and guesthouses. It’s one of the best options when it comes to affordable areas in Tokyo.
2. Ueno – This popular neighborhood is home to several museums, parks, and temples. The area is well-connected to the rest of the city via public transportation and has plenty of budget accommodation options. It’s a quieter area compared to other districts, making it a great area for families.
3. Shinjuku – This lively neighborhood offers plenty of budget accommodation options, including hostels, capsule hotels, and budget hotels. The area is known for its nightlife, shopping, and entertainment, making it a great choice for budget travelers looking for a vibrant atmosphere, especially in the evening.
4. Ikebukuro – This fun neighborhood offers plenty of budget accommodation options, including hostels and budget hotels. The area is especially known for its shopping and entertainment venues, although expect it to be very crowded.
- 5. Shibuya – This trendy neighborhood is known for its fashion, shopping, and entertainment. While there are several high-end hotels in the area, there are also plenty of budget accommodation options you can choose from. However, booking in advance is highly recommended.
- 6. Koenji – This is a neighborhood that is popular with young people and artists. The area offers plenty of budget accommodation options, including guesthouses and budget hotels. Koenji is also known for its vintage shops, music venues, and street food. However, it is further away from the tourist epicenter, so expect longer travels.
The best areas to stay in Tokyo on a budget are:
1. Asakusa
One of the top budget-friendly areas to stay in Tokyo is Asakusa.
First and foremost, Asakusa offers a large variety of affordable accommodation options, including hostels, guesthouses, and budget hotels. Booking in advance still helps secure great deals for your stay.
Dining in Asakusa is equally budget-friendly. The area offers many street food stalls, local restaurants, and inexpensive izakayas where you can savor traditional Japanese dishes without overspending.
There area is also home to several impressive attractions.
A highlight of Asakusa is Senso-ji Temple, Tokyo’s oldest and most iconic temple. Admission is free, allowing you to explore the historic temple grounds and the bustling Nakamise Shopping Street, known for its souvenirs, snacks, and traditional Japanese goods at reasonable prices.
Adjacent to the area is Sumida Park, a peaceful riverside spot perfect for leisurely strolls or picnics, all while enjoying views of the towering Tokyo Skytree.
Getting around Tokyo from Asakusa is a breeze, thanks to its excellent public transport connections.
Asakusa Station serves the Tobu Skytree, Ginza, and Asakusa lines, providing easy access to many of the city’s major attractions.
Asakusa has a laid-back and traditional vibe, offering a unique contrast to Tokyo’s more fast-paced neighborhoods.
However, nightlife in the area is limited—if that’s what you’re looking for, you’ll need to venture to other parts of the city.
Overall, Asakusa is an excellent choice for budget-conscious travelers who want a more relaxed yet convenient base for exploring Tokyo.
2. Ueno
Ueno is another excellent choice for budget-conscious travelers, offering a wide range of affordable accommodations, including hostels, guesthouses, and budget hotels.
One of Ueno’s standout features is Ueno Park, a sprawling public space that’s home to several cultural landmarks, such as the Tokyo National Museum and Ueno Zoo. While some museums charge admission, the park itself is free and provides a serene setting for walking, picnicking, or simply relaxing.
For a more vibrant experience, head to Ameya-Yokocho (Ameyoko), a bustling shopping street near Ueno Station. Here, you can browse shops selling clothing, accessories, fresh produce, and street food—all at reasonable prices.
When it comes to dining, Ueno offers plenty of wallet-friendly options, from street food stalls to casual restaurants. The area around Ueno Station is particularly rich in affordable eateries where you can enjoy delicious meals without straining your budget.
Steeped in history, Ueno is one of Tokyo’s oldest neighborhoods, and nearby attractions like the Ueno Toshogu Shrine add to its charm. In addition to the Tokyo National Museum, the area is home to several other cultural institutions, many of which offer free or discounted admission on select days.
A major advantage of Ueno is its status as a transportation hub. Ueno Station connects to multiple train lines, including the Shinkansen, making it easy to explore other parts of Tokyo and even venture to other cities in Japan.
During spring, Ueno Park becomes a popular destination for cherry blossom viewing (hanami). Despite the crowds, it’s a stunning and free activity that shouldn’t be missed.
While Ueno provides ample affordable accommodation and dining options, it’s worth noting that the area tends to quiet down at night, making it less appealing for those seeking a lively nightlife scene.
For budget travelers, Ueno offers a perfect mix of affordability, cultural experiences, and convenient access to Tokyo and beyond.
3. Shinjuku
So far, the recommended areas have been in quieter parts of Tokyo, offering plenty of affordable accommodation options. Shinjuku, however, is the complete opposite.
Known for its vibrant nightlife, shopping, and entertainment, Shinjuku is perfect for budget travelers who thrive in a lively and energetic atmosphere. While often associated with upscale entertainment and shopping, the area also has plenty of budget-friendly options.
Shinjuku’s accommodation scene caters to a wide range of budgets. While luxury hotels are plentiful, you can also find affordable choices like budget hotels, hostels, and capsule hotels for a more economical stay.
When it comes to dining, Shinjuku doesn’t disappoint. Areas like Omoide Yokocho and Shin-Okubo (Korea Town) are treasure troves of affordable and delicious food, offering everything from local Japanese dishes to flavorful Korean cuisine.
The biggest draw of staying in Shinjuku, however, is its nightlife scene. From bustling bars to neon-lit streets filled with energy, Shinjuku truly comes alive after dark. If nightlife isn’t your thing, this area might not be the best choice for finding budget accommodation—you’ll likely get better value in the quieter parts of the city.
But if exploring Tokyo’s dynamic nightlife is on your agenda, staying in Shinjuku is well worth considering. Despite its reputation as a more upscale area, it offers affordable options that allow budget travelers to enjoy the best of Tokyo’s nighttime excitement.
4. Ikebukuro
Ikebukuro is a lesser-known yet intriguing area of Tokyo, making it an excellent choice for budget-conscious travelers.
The district boasts a wide range of affordable accommodations and is primarily a shopping and entertainment hub, offering plenty of wallet-friendly dining and nightlife options.
Compared to Tokyo’s more popular neighborhoods, Ikebukuro stands out for its affordability, even when it comes to its malls, department stores, and discount shops.
A highlight of the area is Sunshine City, a massive shopping and entertainment complex.
While some attractions within Sunshine City have entry fees, you can still enjoy free areas, such as the observation deck that offers stunning panoramic views of Tokyo.
The main trade-off of staying in Ikebukuro is its location—it’s further from Tokyo’s major attractions and iconic neighborhoods. However, thanks to Tokyo’s world-class public transportation, this isn’t as much of a hurdle as it might seem.
Ikebukuro Station, a major transportation hub, connects you to various parts of the city and beyond, though you’ll need to factor in slightly longer travel times.
If you’re willing to compromise on proximity to the city’s main sights, staying in Ikebukuro allows you to save significantly on accommodations while still enjoying a vibrant local scene.
It’s a smart choice for travelers looking to stretch their budget without sacrificing comfort or convenience.
5. Shibuya
Shibuya is one of Tokyo’s most iconic districts, celebrated for its vibrant energy, trendy fashion, and the world-famous Shibuya Crossing.
While the area is often associated with upscale shopping and entertainment, it’s still possible to find affordable accommodation here—if you book in advance. For budget-conscious travelers, securing a reasonably priced stay in Shibuya can be a challenge, but it’s well worth the effort.
As one of the most popular neighborhoods in Tokyo for tourists, Shibuya offers a mix of fashion boutiques, sprawling department stores, an excellent food scene, and a bustling nightlife. Even on a budget, you can indulge in the local cuisine, especially by exploring the street food options scattered throughout the district.
For a quieter escape, head to the Shibuya River area, including Daikanyama and Nakameguro. These charming neighborhoods offer a more relaxed vibe with boutique shops, cozy cafes, and scenic riverside paths—a perfect retreat from Shibuya’s hustle and bustle.
Transportation is another major plus. With access to the JR Yamanote Line, subway lines, and buses, Shibuya serves as a convenient hub for exploring other parts of Tokyo, all while staying within your travel budget.
If you’re looking to immerse yourself in one of Tokyo’s liveliest and trendiest areas, Shibuya is an excellent choice. Just remember to book well in advance and be prepared for slightly higher costs compared to the city’s older, quieter neighborhoods.
6. Koenji
The last affordable area that we recommend is Koenji. It’s a bohemian gem in Tokyo, beloved by young people and artists for its unique cultural vibe.
The neighborhood offers a range of budget-friendly accommodations, including guesthouses and budget hotels, making it an appealing choice for cost-conscious travelers.
Koenji stands out with its vintage shops, live music venues, and street food, creating a vibrant atmosphere that’s perfect for those seeking a more offbeat experience. It’s an excellent spot for travelers who enjoy street art, independent theaters, quirky cafés, and cozy bars with live performances.
However, it’s important to note that Koenji is located farther from Tokyo’s tourist center. That said, the area is just a short train ride from Shinjuku, one of the city’s main transportation hubs, which makes accessing Tokyo’s major highlights relatively straightforward.
Koenji might not be for everyone, but it’s an ideal choice for young and adventurous travelers looking for a creative and budget-friendly slice of Tokyo.
Travel Tip: If you’re visiting in August, don’t miss the Koenji Awa Odori Festival, a lively traditional dance event that’s one of Tokyo’s largest festivals—and free to attend!