As Tokyo’s housing prices continue to rise, popular rental and home-buying locations are moving from the city center to more affordable, convenient suburban areas.

TOKYO, JAPAN (MERXWIRE) – According to LIFULL HOME’S’s 2026 ranking of Tokyo’s “Most Ideal Residential Areas,” both renters and buyers are increasingly looking to the suburbs, balancing budget with quality of life.

In the rental market, Kasai ranked first for the second consecutive year, followed by Hachioji Station in second and Omiya Station in third. These stations have remained in the top ten since 2019, benefiting from convenient transportation and well-developed station-area amenities, making them key suburban living hubs in the Tokyo metropolitan area.

The trend is even more pronounced in home-buying. Yugawara topped the list of “Most Ideal Home-Buying Areas” for the first time, with Hachioji and Yachimata ranking second and third. This marks the first time the top three spots have all been suburban stations, highlighting a clear shift of homebuyers away from central Tokyo.

Experts attribute Yugawara’s rapid rise to its relatively affordable housing and comfortable living environment. Traditionally popular for hot springs, retirement, and vacation homes, the area is increasingly attracting working-age buyers as metropolitan housing costs soar. Its convenient access via the JR Tokaido Line and Shinkansen allows for manageable commutes to Tokyo and Yokohama.

A 30-something office worker commented, “Housing in central Tokyo is too expensive, and even with loans it’s tough. Areas like Hachioji are more affordable and still convenient, so a slightly longer commute is acceptable.”

A homebuyer in their 40s added, “Yugawara offers more space and a comfortable environment at a reasonable price. It works well for both living and vacation purposes.”

Overall, the rankings show a growing preference for suburban areas with good transportation and amenities. Lower costs and larger living spaces are driving the shift, and with rising interest from overseas buyers seeking property in Tokyo, the suburbs are becoming increasingly attractive for both local and international residents.