Cost Of Living For a Family in Kobe 2024

Average monthly spending for families in Kobe

We consider a family to be a member of four members, two adults and two children. This is the most common type of family. From the figures below, it should be fairly easy to calculate the average spending for families of different sizes.

How much money does a family need in a month to survive in Kobe?

Families in Kobe spend around 710,000 JPY per month on average. Depending on the lifestyle, a family can survive with a monthly budget as low as 250,000 JPY or as high as 4.6M JPY. Location and income are very important factors and have a huge influence on expenditure and budget.

Family expenditure to income ratio in Kobe

Analysing the how affordable it is for families to live in Kobe

One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in. Families usually spend a larger chunk of their income than other population groups. A typical and healthy expenditure percentage for a family of four ranges between 70% to 80%.

Families in Kobe spend around 83% of their monthly income. Some families spend as low as 75% of their income while some as high as 92%.

How do families spend their money in Kobe?

We asked thousands of families about their spending habits and expenditure break down.

Housing and accomodation expenditure for families

Families in Kobe typically spend from 22% to 37% of their total monthly expenditure on housing with 27% being the average. The average monthly spend on housing is 230,000 JPY with expenditure ranging from 80,000 JPY to 1.5M JPY. This cost mainly goes for rent but it also includes other accommodation-related expenses.

Electricity, utilities, energy, water, internet, and mobile expenditure for families

Utility expenditure like electricity, water, and gas in Kobe ranges from 3% to 8% of total expenses with 5% being the average for most families. The average monthly cost of utilities is 36,000 JPY with 12,000 JPY and 230,000 JPY being the upper and lower limits for a family of four.

Transport, fuel, and commute expenditure for families

Fuel consumption and cost of transport depend heavily on whether a family resides near school and work, but roughly speaking a family would expect to spend from 25,000 JPY to 460,000 JPY in a month on commuting with 71,000 JPY being the norm for most families. This means that money spent on transport constitutes about 6% of total spending on average but can go as low as 4% or as high as 8%.

Food, groceries, and basic shopping expenditure for families

The average outlay on groceries and basic houshold items for a typical family in a month in Kobe is 130,000 JPY. The cost of groceries can range between 45,000 JPY to 830,000 JPY. Families spend on average about 20% on food and groceries with upper and lower bounds of 13% and 26% respectively.

Healthcare and medical services expenditure for families

Families in Kobe allocate 6% to 15% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending on medical services and clinic visits is around 10%. The range of medical expenses range from 22,000 JPY to 370,000 JPY with 71,000 JPY being the norm for most families.

Leisure and shopping expenditure for families

This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 12,000 JPY to 230,000 JPY with 36,000 JPY being the average. Speaking of percentages, that equates to 2% to 7% of total expenses with an average of 3% for most families.

Education and schooling expenditure for families

Spending on education can vary drastically between different families. On average, education constitutes 14% of the monthly expenditure of families with 7% and 22% being the lower and upper bounds respectively. The average reported education cost is 100,000 JPY per month with 35,000 JPY being the minimum spent amount and 650,000 JPY being the maximum.

What percentage of families in Kobe are able to save money and how much can they save?

Percentage of families that reported their ability to save money

Almost 58% of surveyed families in Kobe said that they can save some money at the end of each month while 42% reported that they have to utilize their whole income to survive.

How much money do families manage to add to their savings?

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for families

Interpretation and Analysis

Families that are able to save money can put anywhere from 8.5% to 27% of their monthly income to their savings, with 15% being the average for most families. The average monthly amount of money that families can put aside is 280,000 JPY with 98,000 JPY and 1.8M JPY being the minimum and maximum respectively.

Saving Challenges in Kobe

Reasons that make it difficult for families to save money

We wanted to understand what is stopping families from maximizing their savings in Kobe. Listed below are the answers given by the survey participants.

Around 6% of the families said that their salary is too low to accommodate a portion for savings while 9% said that the high cost of living leaves little room for savings. 16% of the residents said that they are burdened with debt and find it challenging to save money. 11% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 10% of families blamed impulsive spending as the reason for saving inability. Around 6% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 6% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 19% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 12% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 3% said that social pressure and keeping up with peers or social expectations makes them overspend. Lastly, 3% blamed market instability and price fluctuations.

Typical saving choices for families in Kobe

Where do people choose to put their savings?

A typical and healthy budgeting structure

The 50/30/20 rule

Spending among different people can vary significantly based on factors such as their income, lifestyle, location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule, which suggests allocating your income into three main categories in the following percentages.

• 50% for needs and financial obligations

  This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.

• 30% for wants and discretionary spending

  This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.

• 20% for savings and emergency fund

  This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.

About financial planning, money management, and household budgeting

Affordable living in Kobe

Income and cost of living compatibility

We asked families one simple question and recorded their answers.

Is it affordable or economical to live in Kobe?

Around 70% of surveyed families think that living in Kobe is affordable with proper budgeting while 30% reported that it is just too expensive and not affordable even with frugality and thriftness.

Low-cost alternatives in Kobe

People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked families how easily cost-cutting is and the answers were distributed as follows:

Plenty of low-cost options58%

Few low-cost options42%

Based on the survey, 58% of the families living in Kobe have no problem finding low-cost alternatives to support a frugal lifestyle while 42% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.

Emergency Funds For Families

An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked families of Kobe whether they have an emergency fund and the answers were as follows.

Yes68%

No32%

Based on the survey, 32% of the families living in Kobe said that they don't have an emergency fund while 68% said that they do.

Financial Literacy in Japan

Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.

Financial Leteracy69%

We asked family guardians and parents in Kobe whether they acquired any adequate personal financial training in their lives. Approximately 31% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 69% said that they know about the general principles of personal finance from sources other than their own experience.

Difficulty in Budgeting and Financial Planning

We wanted to understand whether families of Japan have problems or difficulties in managing their expenditures and savings so we asked people one simple question: do you struggle with your personal finances? 28% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 72% said that they have everything under control.

Struggles with finance28%

Easily manages finances72%

Financial goals of families in Kobe

In an attempt to understand the economic situation in Kobe, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.

Around 7% of families said that their main goal is to establish an emergency fund to cover unexpected expenses while 38% said their number one priority is to pay off high-interest debt or loans and improve credit. 9% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 8% reported that their priority is saving for the tuition fees and education costs of their children while 17% choose to buy a home or pay off existing mortgage before other things. 8% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 9% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 11% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.

Debt, loans, and mortgages in Kobe

Percentage of families who are in debt

According to the survey, 26% of the families in Kobe have some kind of debt, loan, mortgage, or credit card payments while 75% reported that they don't have financial obligations to banks.

Debt-to-income ratio in Kobe

Interpretation

The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 27% of a family's monthly income in Kobe goes to debt settlement.

Debt levels

Monthly debt settlement payment as percentage of monthly income

According to our data, 3% of the debtors in Kobe pay 60%+ of their income as debt settlement while 15% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 13% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 15% dedicated 30% to 40% of income for same. Things are looking brighter for 13% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.

Distribution by type of debt in Kobe

11% of debtors in Kobe confirm that real estate mortgages constitutes the main part of their outstanding debt while 27% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 19% of people and personal loans rose at 40%. Lastly, student loans are the main source of debt for 3% of debtors in Kobe.

Good debt vs. Bad debt

Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.

Loan Affordability Index in Kobe

Besides measuring the loan-to-income ratio, we asked families of Kobe how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.

Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.

Housing costs, accommodation, and housing affordability in Kobe

Rent Cost in Kobe

Monthly Rent Prices

Studio apartment monthly rent cost

41,000 JPY

62,000 JPY

170,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$270

$410

$1,100

1-bedroom apartment monthly rent cost

62,000 JPY

99,000 JPY

250,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$410

$660

$1,600

2-bedroom apartment monthly rent cost

83,000 JPY

120,000 JPY

330,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$550

$820

$2,200

3-bedroom apartment monthly rent cost

99,000 JPY

170,000 JPY

450,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$660

$1,100

$3,000

Furnished apartment monthly rent cost

200,000 JPY

500,000 JPY

990,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$1,300

$3,300

$6,600

Townhouse monthly rent cost

170,000 JPY

250,000 JPY

710,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$1,100

$1,600

$4,700

House monthly rent cost

200,000 JPY

500,000 JPY

990,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$1,300

$3,300

$6,600

Villa monthly rent cost

250,000 JPY

620,000 JPY

990,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$1,600

$4,100

$6,600

The monthly rental cost of a studio apartment in Kobe ranges between 41,000 JPY and 170,000 JPY, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 62,000 JPY to 250,000 JPY. Two-bedroom rentals rate ranges between 83,000 JPY and 330,000 JPY per month. The monthly rental for a three-bedroom apartment ranges from 99,000 JPY to 450,000 JPY. The average rent of a townhouse in Kobe is around 250,000 JPY while house rental costs can be as high as 500,000 JPY per month. Finally, if you want to rent a villa, expect to pay anywhere from 250,000 JPY to 990,000 JPY per month.

Apartment and house prices in Kobe

Cost of buying a property

Studio apartment price

8.3M JPY

12M JPY

25M JPY

MINIMUM

AVERAGE

MAXIMUM

$55,000

$82,000

$160,000

1-bedroom apartment price

9.9M JPY

17M JPY

62M JPY

MINIMUM

AVERAGE

MAXIMUM

$66,000

$110,000

$410,000

2-bedroom apartment price

17M JPY

50M JPY

99M JPY

MINIMUM

AVERAGE

MAXIMUM

$110,000

$330,000

$660,000

3-bedroom apartment price

55M JPY

83M JPY

250M JPY

MINIMUM

AVERAGE

MAXIMUM

$370,000

$550,000

$1.6M

Townhouse price

71M JPY

170M JPY

620M JPY

MINIMUM

AVERAGE

MAXIMUM

$470,000

$1.1M

$4.1M

House price

83M JPY

500M JPY

710M JPY

MINIMUM

AVERAGE

MAXIMUM

$550,000

$3.3M

$4.7M

Villa price

99M JPY

550M JPY

830M JPY

MINIMUM

AVERAGE

MAXIMUM

$660,000

$3.7M

$5.5M

The average price of a studio apartment in Kobe can range from 8.3M JPY to 25M JPY depending on location. One bedroom cost can be anywhere from 9.9M JPY to 62M JPY. A villa can cost you 550M JPY on average with prices ranging from 99M JPY to 830M JPY.

House / apartment prices to income ratio

Property prices in Kobe can be x109 to x198 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x109 multiples of the average monthly salary in Kobe.

Rent to income ratio

The average rent-to-income ratio in Kobe is around 29%. This means that people pay 29% of their income for rent. Those figures can range from 20% to 39% depending on the salary, location, and type of property.

Housing affordability index

The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.

Property Taxes

Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.

Home Maintenance Costs

Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.

Urban vs. rural living costs

Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.

Monthly costs and expenses of energy and basic utilities in Kobe

Energy, electricity, water, gas, internet, and mobile cost in Kobe

Utility Bill Cost / Electricity + Water + Gas / Family

12,000 JPY

36,000 JPY

230,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$83

$240

$1,500

Internet and cable cost

2,500 JPY

5,000 JPY

6,700 JPY

MINIMUM

AVERAGE

MAXIMUM

$17

$33

$44

Mobile phone bill and charges

2,000 JPY

3,300 JPY

10,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$13

$22

$67

The average monthly energy and water consumption of families is around 36,000 JPY. The cost of internet and WiFi ranges from 2,500 JPY to 6,700 JPY with 5,000 JPY being the average internet bill. Finally, the average monthly mobile charges is around 3,300 JPY but can range between 2,000 JPY and 10,000 JPY depending on consumption. Mobile charges include both calling minutes as well as data packages.

Energy / Utility expense to income ratio

The average utility-to-income ratio in Kobe is around 4.7%. This means that people pay 4.7% of their income for energy, water, internet, and mobile charges. Those figures can range from 1.9% to 8.5% depending on salary and location.

Food Prices, Dining Expenses, and Grocery Costs in Kobe

Prices and cost of goods and services in Kobe

Dining out, food, and beverages costs. Price variations for common food items.

Fast food combo meal price

500 JPY

1,000 JPY

1,700 JPY

MINIMUM

AVERAGE

MAXIMUM

$3.3

$6.7

$11

The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in Kobe is approximatly 1,000 JPY with meal cost ranging from 500 JPY to 1,700 JPY. The typical combo meal consists of a burger, french fries, and a drink.

Restaurant meal for one price

1,700 JPY

2,500 JPY

5,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$11

$17

$33

If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 1,700 JPY and 5,000 JPY with 2,500 JPY being the average price of a plate for one person at a regular restaurant in Kobe.

Fine dining meal for one price

3,300 JPY

5,000 JPY

20,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$22

$33

$130

The price range of a meal at fine-dining restaurant is 3,300 JPY to 20,000 JPY with the average cost being 5,000 JPY for one person. This is what you would expect to pay a top-tier diner in Kobe.

Beverage prices, cappuccino, latte etc..

420 JPY

670 JPY

1,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$2.8

$4.4

$6.7

The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Kobe is around 670 JPY. Price ranges between 420 JPY and 1,000 JPY depending on the type of beverage, the size, and optional add-ons.

Grocery and market costs

Large bottle of milk price

330 JPY

400 JPY

500 JPY

MINIMUM

AVERAGE

MAXIMUM

$2.2

$2.7

$3.3

The average price of a large bottle of milk in Kobe is 400 JPY. The maximum what you would pay for milk is 500 JPY and the minimum being 330 JPY depending on the brand of milk and other properties.

12 eggs price

250 JPY

330 JPY

500 JPY

MINIMUM

AVERAGE

MAXIMUM

$1.7

$2.2

$3.3

A dozen eggs costs around 330 JPY on average with 250 JPY and 500 JPY being the lower and upper limits respectively.

Fresh whole chicken price

570 JPY

740 JPY

1,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$3.8

$4.9

$6.9

The price range of a fresh whole chicken in Kobe is between 570 JPY and 1,000 JPY depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 740 JPY.

Pack of beef price

670 JPY

1,000 JPY

2,000 JPY

MINIMUM

AVERAGE

MAXIMUM

$4.4

$6.7

$13

The price of a regular pack of beef or meat is around 1,000 JPY. A pack of beef contains around 1Kg or 1lb depending on packing.

Medium bag of rice price

270 JPY

370 JPY

520 JPY

MINIMUM

AVERAGE

MAXIMUM

$1.8

$2.5

$3.5

A bag of rice in Kobe costs around 370 JPY on average with prices rangeing between 270 JPY and 520 JPY depending on the brand and quality.

Bag of tomatos price

100 JPY

130 JPY

250 JPY

MINIMUM

AVERAGE

MAXIMUM

$0.67

$0.89

$1.7

A bag of tomatoes costs anywhere from 100 JPY to 250 JPY. A bag of tomatoes denotes 1Kg or 1lb depending on location.

Bag of apples price

180 JPY

230 JPY

390 JPY

MINIMUM

AVERAGE

MAXIMUM

$1.2

$1.6

$2.6

A bag of apples costs 230 JPY on average. A bag of apples denotes 1Kg or 1lb depending on location.

Grocery and food expenditure to income ratio

The average grocery-to-income ratio in Kobe is around 25%. This means that families spend 25% of their income on grocery and basic household items. The expenditure can range from 17% to 30% depending on salary and location.

Expenditure on food and grocery for families