Where to stay in Tokyo on a budget: 6 Best areas

In this post, I will help you to find Where to stay in Tokyo on a budget, est areas to stay in Tokyo on a budget, the best cheap hotels and accommodations in Tokyo for all travelers.

While Tokyo is known for being an expensive city, there are still areas where you can find affordable accommodations. It is a sprawling city with an extensive public transportation network, so even if you stay in a budget-friendly area, you can easily explore other parts of the city.

Where 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. These neighborhoods provide a mix of affordability, convenient transportation links, and proximity to popular attractions, making them ideal for budget travelers visiting Tokyo.

Booking your accommodation well in advance can help you secure better deals, especially during peak travel seasons. Consider staying in neighborhoods outside the city center. While you might have a longer commute, suburban accommodations tend to be more affordable.

Map of Best areas where to stay in Tokyo on a budget:

Map of 6 Best areas to stay in Tokyo on a budget

6 Best areas to stay in Tokyo on a budget are:

1. Asakusa

Asakusa is one of the best areas to stay in Tokyo on a budget. It is a historic district located in the northeastern part of Tokyo and is known for its traditional atmosphere, historic temples, and affordable accommodations.

Asakusa has a traditional, old-world charm that attracts visitors seeking a taste of old Tokyo. The narrow streets, traditional architecture, and the lively atmosphere of Nakamise shopping street make it a unique and enjoyable place to explore.

Asakusa is home to some of Tokyo’s most famous attractions, and many of them are free or have low admission fees. Some of the budget-friendly things to do and see in Asakusa are:

The Senso-ji, Tokyo’s oldest and most famous Buddhist temple, is home to the Kaminarimon Gate (Thunder Gate).
Nakamise Shopping Street, a bustling street, is lined with traditional shops selling a variety of souvenirs and local delicacies.
Take a stroll along the Sumida River Promenade, a scenic waterfront pathway that stretches from Asakusa to Hamarikyu Gardens.
Take a relaxing boat ride along the Sumida River, which flows through Asakusa
The Asakusa ROX, a theater showcasing various traditional Japanese arts, including kabuki, rakugo (comic storytelling), and geisha performances.
The Happy Street, a narrow alley famous for its izakayas (Japanese pubs) and street food stalls. Sample some local favorites like yakitori, takoyaki, and monjayaki.
The Asakusa Culture Tourist Information Centre, has the observation deck on the top floor and provides panoramic views of Tokyo Skytree and the city skyline.
Kappabashi Street (Kitchen Town), a great place to buy unique souvenirs or browse for Japanese cooking utensils.

Asakusa is well-connected to major attractions in Tokyo through public transportation, particularly the Tokyo Metro and Toei Subway lines.

The Asakusa Station is a major transportation hub, connecting you to various subway lines and allowing you to reach popular tourist destinations conveniently.

Asakusa offers a range of budget-friendly accommodation options, including hostels, guesthouses, and budget hotels. These options provide relatively cheaper rates compared to other popular areas in Tokyo like Shibuya or Shinjuku.

Best places to stay in Tokyo in Asakusa on a budget:

Henn na Hotel Tokyo Asakusa Tawaramachi, 3-star hotel, one of the best places to stay in Tokyo on a budget, located within walking distance from Kuramae Jinja Shrine and Eiken-ji Temple. Its location offers easy access to metro stations, supermarkets, and attractions.

Hostel Chapter Two Tokyo, great 2-star cheap backpacker hostel, featuring air-conditioned rooms with free WiFi, each with a shared bathroom. Easy walk from Asakusa Station.

Resol Poshtel Tokyo Asakusa, 1-star capsule hotel, located in a great location, easy access to the metro station, and numerous attractions such as Asakusa ROX Shopping Center, Drum Museum, and Asakusa Public Hall.

🔍BEST HOTEL DEALS IN ASAKUSA

2. Ueno

Ueno is a popular choice for those looking to save money while visiting Tokyo due to its affordable accommodations, convenient transportation, and access to budget-friendly attractions and dining options.

Ueno is a vibrant neighborhood located in the northeastern part of Tokyo. It is known for its rich cultural heritage and has a variety of attractions that are free or inexpensive to visit.

Ueno Park, one of Tokyo’s largest parks, is home to several attractions including temples, museums, and a Ueno Zoo. Enjoy a leisurely stroll, have a picnic, or relax by the picturesque Shinobazu Pond.

The area is home to numerous attractions offer affordable admission fees and sometimes even free entry on certain days, such as:

Kaneiji Temple, a beautiful 17th century temple complex with peaceful gardens, impressive gates, and several historic structures.
Ueno Toshogu Shrine, dedicated to Tokugawa Ieyasu, the founder of the Tokugawa Shogunate. You can admire its intricate architecture and beautiful carvings.
Yanaka Cemetery offers a unique perspective on Japanese history and culture.
Shitamachi Museum, the daily life of Tokyo’s working-class people from the 20th century
Ueno Royal Museum, featuring works by both Japanese and international artists.
Tokyo National Museum, Japan’s oldest and largest museum.
National Museum of Nature and Science, located inside Ueno Park,

Located near Ueno Station, Ameya-Yokocho (Ameyoko) is a bustling market known for its affordable shopping options. You can find a wide variety of goods, including clothes, accessories, cosmetics, and fresh produce at reasonable prices.

Ueno is dotted with inexpensive eateries, street food stalls, and izakayas (Japanese pubs) where you can enjoy delicious meals at affordable prices. This makes it easier to find budget-friendly dining options.

Ueno’s central location makes it a convenient base for exploring other parts of Tokyo. It is close to popular areas like Akihabara (known for electronics and anime), Asakusa (home to Senso-ji Temple), and Yanaka (a traditional neighborhood with old-fashioned charm). These areas can be easily reached on foot or by a short train ride from Ueno.

Ueno is a major transportation hub with excellent connectivity. It is serviced by Ueno Station, which is a major JR (Japan Railways) station and a terminal for the Shinkansen (bullet train).

Ueno station also connects to various subway lines, making it easy to explore other parts of Tokyo and beyond without spending too much on transportation.

Ueno has a wide selection of budget-friendly accommodations, including capsule hotels and guesthouses, which can be more affordable compared to other areas in Tokyo.

Best places to stay in Tokyo in Ueno on a budget:

Sotetsu Fresa Inn Ueno-Okachimachi, great 3-star budget-friendly accommodation, located within walking distance from Shitamachi Museum and Ryuseido Shinjo-in Temple. It has a restaurant, air-conditioned rooms with free WiFi, each with a private bathroom.

Grids Tokyo Ueno Hotel&Hostel, 3-star hostel located in a prime location in Tokyo, offers a shared kitchen. Easy walk from Front gate of Honobo In Kanei-ji Temple.

Gran Custama Ueno, one-star capsule hotel located just a 3-minute walk away from JR Ueno Station, featuring 24-hour front desk and free luggage storage. There is a female-only floor as well as a male-only floor.

🔍BEST HOTEL DEALS IN UENO

3. Shinjuku

Shinjuku is a bustling area with a mix of business, entertainment, and shopping districts. While it can be a bit more expensive than other areas, there are budget accommodations available.

Shinjuku is suitable for travelers who want a central location with convenient transportation with easy access to nightlife, shopping, and entertainment options.

Shinjuku is a major transportation hub in Tokyo, making it convenient for exploring the city on a budget. It has excellent access to various subway and train lines, allowing you to easily reach other popular areas and attractions.

Shinjuku is a major stop on the Narita Express, the train service connecting Narita International Airport to Tokyo, making it convenient for budget travelers flying into Narita.

Shinjuku is a convenient starting point for a day trip to Mount Fuji, the Fuji Five Lakes area, where you can enjoy beautiful views of the renowned mountain and engage in outdoor activities.

Shinjuku offers a wide range of dining choices to suit different budgets. You can find affordable eateries, street food stalls, and budget-friendly izakayas (Japanese pubs) where you can enjoy reasonably priced meals.

Shinjuku boasts a vibrant nightlife scene. While some establishments can be pricey, there are also budget-friendly options available, including affordable izakayas and karaoke establishments.

Some of the budget-friendly things to do and see in Shinjuku are:

Shinjuku Gyoen National Garden, great place to enjoy the cherry blossoms in spring or the vibrant foliage in autumn, and relax in the serene surroundings.
Golden Gai, a narrow network of alleyways, is known for its small, unique bars and pubs. Great for local nightlife, and mingle with locals and fellow travelers.
Kabukicho, a famous entertainment district, is filled with bright lights, arcades, theaters, and restaurants.
Tokyo Metropolitan Government Building, home to the observation decks on the 45th floor of this iconic building for panoramic views of Tokyo.
Robot Restaurant, an unique and eccentric show is a sensory overload of music, neon lights, and giant robots.
Omoide Yokocho (Memory Lane), narrow alley lined with tiny bars and eateries.

If you’re interested in shopping, Shinjuku won’t disappoint. It has several department stores, including affordable options like Don Quijote, where you can find a wide range of goods at reasonable prices.

There are vast shopping complexes like Isetan, Takashimaya, and Lumine to discover a wide range of fashion, cosmetics, and electronics. Don’t forget to check out the basement food floors for an array of delicious and beautifully presented food items.

Shinjuku offers a wide range of accommodation options, including budget-friendly hotels, hostels, and guesthouses. There are numerous capsule hotels in the area, which provide a unique and affordable experience for travelers on a budget.

Best places to stay in Tokyo in Shinjuku on a budget:

La’gent Hotel Shinjuku Kabukicho, 3-star hotel, great base for budget travelers, short walk from Okubo Park, Korea Museum, Choko-ji Temple and Samurai Museum.
Imano Tokyo Hostel, 2-star hostel,ideally located in the lively Shinjuku area, Imano Tokyo Hostel offers dormitories, private and family rooms.
Rembrandt Cabin Shinjuku Shin-Okubo, 1-star capsule hotel has air-conditioned rooms with a shared bathroom. close to Meotogi Shrine and Koizumi Yakumo Memorial Park.

🔍BEST HOTEL DEALS IN SHINJUKU

See more: Where to stay in Shinjuku

4. Shibuya

Shibuya is one of Tokyo’s most vibrant and lively neighborhoods, famous for the Shibuya Crossing and its trendy fashion boutiques. While it can be pricey, there are affordable guesthouses and hostels available.

Shibuya is ideal for travelers who want to experience Tokyo’s bustling street culture, shopping, and nightlife.

Shibuya Station is a major transportation hub in Tokyo, with excellent connectivity to other parts of the city. It is served by multiple train and subway lines, making it easy to explore Tokyo on a budget.

Shibuya is renowned for its vibrant shopping and dining scene. While there are high-end fashion boutiques and upscale restaurants, there are also numerous affordable shopping streets and eateries catering to different budgets.

You can find affordable and delicious street food, local izakayas, and budget-friendly shopping options, particularly around the Center Street (Center Gai) area.

Shibuya is famous for its energetic nightlife and entertainment offerings. You can enjoy free live performances by street musicians and entertainers, visit affordable karaoke bars, or explore the bustling nightlife in the surrounding areas.

Some of the free and cheap things to do in Shibuya include:

Shibuya Crossing, the busiest intersection in the world, is a popular tourist spot that you can experience without spending any money.
Hachiko Statue, a bronze statue dedicated to the loyal dog Hachiko and has become a symbol of loyalty and meeting point in Shibuya.
Meiji Shrine, a serene Shinto shrine located within a beautiful forested area.
Yoyogi Park, providing a tranquil escape from the city’s hustle and bustle.
Center Gai, a lively pedestrian street filled with shops, boutiques, cafes, and restaurants.
Takeshita Street, in Harajuku, famous for its trendy shops, colorful boutiques, and unique fashion styles. It’s a must-visit for fashion enthusiasts.
VR Park Tokyo, offers an immersive virtual reality experience with a variety of games.
Shibuya 109: Shibuya 109, a popular shopping complex for young women
Shibuya Stream, a modern complex with shops, restaurants, and a rooftop garden.
Bunkamura, a cultural complex with a concert hall, theater, art gallery, and shops

Shibuya’s central location makes it a convenient base for exploring other popular areas in Tokyo. It is within easy reach of neighborhoods like Harajuku, Shinjuku, and Roppongi, which offer their own attractions and entertainment options. This saves you both time and transportation costs when moving around the city.

Shibuya offers a range of budget-friendly accommodation options, including hostels, guesthouses, and capsule hotels. These establishments provide basic amenities at lower prices compared to luxury hotels in other areas of Tokyo.

Best places to stay in Tokyo in Shibuya on a budget:

Dormy Inn Premium Shibuya-jingumae (3-star hotel)
The Millennials Shibuya (2-star hotel)
Book Tea Bed SHIBUYA (capsule hotel)

🔍BEST HOTEL DEALS IN SHIBUYA

See more: Where to stay in Shibuya

5. Ikebukuro

Ikebukuro is a popular choice for budget-conscious travelers visiting Tokyo because it provides a balance between convenience, affordability, and a lively atmosphere..

Ikebukuro is located on the Yamanote Line, which is a major train loop that connects many of Tokyo’s popular neighborhoods. This makes it convenient for exploring other parts of the city.

Ikebukuro Station is served by the Narita Express, a direct train from Narita International Airport, which can be a cost-effective option for travelers.

The area is home to the Tobu and Seibu department stores, as well as the Sunshine City complex, which houses an observation deck, an aquarium, and a planetarium. These attractions can provide entertainment without breaking the bank.

Ikebukuro is known for its variety of budget-friendly dining options, including affordable restaurants, cafes, and street food stalls. You can find a diverse range of cuisines, from traditional Japanese dishes to international fare, without breaking the bank.

Ikebukuro has a vibrant nightlife scene, with numerous bars, clubs, and entertainment venues. Explore the area after dark and discover unique dining experiences, karaoke bars, and themed cafes.

Some of the activities and attractions for visitors to enjoy on a budget are:

Tokyo Metropolitan Theatre, hosts various theatrical performances
Otome Road, a shopping street, hub for anime and manga lovers, is lined with stores selling anime merchandise, manga, and cosplay items.
Ikebukuro West Gate Park, located near the train station, a great spot to relax, have a picnic, or enjoy some people-watching.
Ikebukuro Life Safety Learning Center, interactive museum to learn about earthquake preparedness, fire safety through exhibits and simulations.

Ikebukuro offers a range of affordable accommodation options compared to some of the more expensive neighborhoods in Tokyo like Shibuya or Shinjuku.

Best places to stay in Tokyo in Ikebukuro on a budget:

Tokyu Stay Ikebukuro (3-star hotel)
Eisei Stay (3-star hotel)
Hatoya Hotel (1-star hotel)

🔍BEST HOTEL DEALS IN IKEBUKURO

6. Koenji

Koenji is often regarded as a great area to stay in Tokyo on a budget. It is a vibrant neighborhood located in Suginami Ward, known for its retro and bohemian atmosphere.

Koenji is famous for its thrift stores and second-hand shops, which offer unique and affordable clothing, accessories, and vintage items. It’s a great place to find bargains and express your personal style without breaking the bank.

Koenji has numerous inexpensive eateries, including small local restaurants, ramen shops, izakayas (Japanese-style pubs), and street food stalls. You can enjoy delicious meals at affordable prices, especially if you explore the local dining scene.

Koenji is renowned for its live music scene, with many venues hosting indie bands and artists. These venues often have affordable or even free entry, allowing you to experience Tokyo’s music culture without spending a lot.

Some of the best things to do and see in the area include:

Koenji Pal Arcade, the retro-style arcade is a haven for gamers and enthusiasts
Koenji Temple, a Buddhist temple that has a peaceful atmosphere.
Koenji Awa Odori Festival, in August, one of Tokyo’s largest summer festivals, featuring traditional music, dancing, and vibrant parades.
Zenpuku-ji Park, peaceful park for a leisurely stroll, have a picnic, or relax under the cherry blossom trees during the spring season.

Koenji is just a few train stops away from Shinjuku, one of Tokyo’s major transportation hubs. This provides convenient access to various attractions, shopping districts, and entertainment options in Shinjuku while enjoying the relatively lower accommodation costs in Koenji.

Koenji offers a range of budget-friendly accommodations, including hostels, guesthouses, and budget hotels. These options provide relatively lower prices compared to other areas in central Tokyo.

Best places to stay in Tokyo in Koenji on a budget:

GrapeHouse Koenji ( 1-star female-only accommodation)
Court Residence Tokyo Nakano (3-star hotel)
GIVE Araiyakushi (2-star accommodation)

🔍BEST HOTEL DEALS IN KOENJI

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Summary – Where are the best places to stay in Tokyo on a budget?

In conclusion, Asakusa, Ueno, Shinjuku, Shibuya, Ikebukuro, and Koenji are some of the best places to stay in Tokyo on a budget. These areas offer a range of budget-friendly accommodations including hostels, capsule hotels, guesthouses, and traditional ryokans.

Asakusa is perfect for those seeking historic charm and traditional attractions. Ueno appeals to art and nature enthusiasts with its museums and parks. Ikebukuro suits anime and shopping lovers.

Koenji attracts alternative and vintage culture enthusiasts. Shinjuku offers vibrant nightlife and entertainment options. Lastly, Shibuya is ideal for young travelers looking for trendy fashion, bustling streets, and vibrant nightlife.

Choose the area that aligns with your interests for a memorable and affordable stay in Tokyo.