Cost of living in Sendai vs Tokyo: Which is Cheaper for 2026?

When choosing a city to live and work in Japan, two very popular options are Sendai and Tokyo. These are two very different cities, but both offer rich Japanese culture. Tokyo is Japan’s more modern capital and one of the largest cities in the world, while Sendai is two hours north of Tokyo by shinkansen and is a city of about 1 million people.  Very modern and has a great nightlife scene. Lots of international students attend Tohoku University.   The nearby coast is beautiful, and the nearby mountains are great for winter sports. Both offer unique experiences, but they differ significantly in terms of cost, lifestyle and daily life. 

I lived in Sendai for a couple of years, and it’s always been in the back of my mind as a place that I really enjoyed.  If you’re looking at moving to Japan in the near future, or are simply wondering if Sendai is cheaper than Tokyo, you’re in the right place!

Our handy guide will compare and contrast the cost of living in Sendai vs Tokyo, highlighting the differences in accommodation, transport, utilities and other expenses.

Is rented accommodation cheaper in Sendai or Tokyo?

Are utilities cheaper in Sendai or Tokyo?

When planning your budget for Japan, it’s important to factor in utility costs, as this can affect the apartment you choose. Depending on your rental contract, some utilities may already be included, but in most cases, you would be responsible for setting up and paying for utilities individually. 

In Japan, electricity and gas meters are checked monthly, and a “notice of consumption” will be sent to your address. This outlines how much you’ve used and the amount to be billed to you for that month. When compared to Tokyo, Sendai generally offers lower utility costs.

In Tokyo, out of all monthly utility bills for a standard apartment, electricity will be the most expensive at 8,600 yen, with gas at an average of 4,066 yen and water at the smallest of 2,000 yen. This is different to the amount you can expect to pay in Sendai, with lower costs. Electricity at 4,000 yen, Gas at an average of 3,000 yen and water at the smallest of 2,000 yen.  

Sendai experiences colder winters than Tokyo, which can lead to increased heating use, but many homes are designed with better insulation, helping to balance out these costs. The city has a Köppen Cfa climate, similar to Tokyo, Atlanta, and Sydney, but with clearer seasonal changes. Winter runs from December to March with mild snowfall, averaging around 10cm in January, meaning you can enjoy all four seasons without extreme cold.

Summers are cooler than in Tokyo, with average temperatures between 21–27°C and rarely getting above 31°C, which can help reduce air-conditioning costs and makes Sendai an attractive option for ALTs looking for lower living costs. 

For more budgeting tips for living in Japan, take a  look at our budgeting tips for living in Japan. 

Are groceries cheaper in Sendai or Toyko?

One of the highlights of living in Japan is the new food and drink options that are available in local supermarkets. If you choose to move here, you will soon find your favourites and pick up tips from colleagues and friends. 

When comparing Sendai and Tokyo, prices are generally more affordable in Sendai. As with most living costs, Tokyo’s size and demand mean prices are normally higher, particularly in central areas and convenience stores.

Sendai’s stores often offer supermarkets, and local stores often offer similar quality products at lower prices, making everyday shopping more budget-friendly. 

If you’re just picking up a few essentials on your way home from work, prices can vary.

Here’s a quick table to illustrate what we mean:

Both cities can vary depending on where you shop. Convenience stores and smaller supermarkets near major stations, for example, are usually more expensive, while local markets are better value. Ready-made meals and bento boxes are also widely available in both cities and can be a popular choice for ALTs when busy. 

If you want to stretch your budget further, learning how to shop locally can make a big difference. Take a look at our guide to Japanese convenience stores for tips on saving money, while still enjoying the incredible food culture Japan has to offer!

Is dining out cheaper in Sendai or Tokyo? 

Japan is well known for its wide range of affordable dining options, from local noodle shops and curry houses to family restaurants and chain restaurants like Japanese McDonald’s. Whether you’re grabbing lunch between classes or meeting friends for dinner, it’s good to explore the range of dining out options when working as an ALT in Japan. 

When comparing Sendai and Tokyo, dining out is normally more affordable in Sendai. In Tokyo, prices are higher on average due to demand, especially in popular neighbourhoods and transport hubs. Of course, this depends on the restaurant you go to, with an average lunch out being 1,250 yen ($8) and an average dinner being 1,491 yen ($10). 

In Sendai, similar dining out options are often 10-20% cheaper, with many casual restaurants offering filling lunches for under 1,000 yen ($6.50) and reasonably priced dinners that don’t stretch the budget. Local restaurants and regional specialities also provide great value, making Sendai a popular choice to try lots of dining out options, without high costs. 

Is transportation cheaper in Sendai or Tokyo?

Is entertainment cheaper in Sendai or Tokyo?

The last word on the cost of living in Sendai vs Tokyo