Larger rental segments remain strong
AtHome's July 2026 asking-rent survey, published August 27, found year-on-year increases across every apartment size category in all major parts of the Tokyo metropolitan area. In Tokyo's 23 wards, asking rents for 30-50 square meter apartments reached the highest level since the survey's 2015 base period for the 14th consecutive month. Expensive home purchase prices and continued demand from working households are among the market conditions supporting larger rental units.
Small apartment rents pause after a long rise
Tokyo's sub-30 square meter apartment segment moved differently. After setting new highs for 25 consecutive months, average asking rent declined from the previous month in July for the first time in 26 months. This does not mean Tokyo rents as a whole have turned downward. Small apartment rents remained strong in other property types, including apartments where the 23 wards recorded another historical high. The data underscore the need to evaluate individual unit size and submarket rather than treating Tokyo as one uniform rental market.
Overseas landlords should focus on net income
For overseas landlords, higher advertised rents are positive but should not be confused with actual investment returns. Vacancy, rent-free periods, management fees, repairs, condominium charges and taxes all reduce net income. The July movement in small units is therefore worth monitoring, particularly in neighborhoods with heavy investor-owned studio supply. Future surveys will help determine whether the decline was temporary or the first sign that rental growth in that segment is slowing.