The Tokyo Metropolitan Government is launching affordable housing units in the Tsukiji and Shibuya districts as part of large-scale redevelopment projects [1].
This initiative addresses the growing challenge of rising rents in central Tokyo. By targeting child-rearing and newly married households, the city aims to make the urban core more accessible to young families who are often priced out of the city's most desirable neighborhoods [1], [2].
The program provides units with rents approximately 20% lower than standard market rates [1]. To incentivize private developers to participate in these social housing goals, the city is easing floor-area-ratio rules for mixed-use buildings [1], [2]. This regulatory flexibility allows developers to build more densely or higher than normally permitted in exchange for providing subsidized residential space.
Officials said they have planned a supply of 300 affordable housing units through these partnerships [2]. As an example of the pricing structure, a renovated unit measuring 72 square meters is expected to cost 88,000 yen per month [2].
The recruitment of tenants for these units began on May 29, 2024 [2]. The strategy marks a shift in how the city integrates social welfare into high-value real estate development—using zoning incentives to drive private sector cooperation.
By embedding these units within the Tsukiji and Shibuya projects, the city ensures that lower-income residents are not pushed to the periphery. This approach seeks to maintain a diverse demographic within the central business districts, while continuing the city's broader urban modernization efforts [1].
“Rents are approximately 20% lower than standard market rates.”
Tokyo's approach signals a transition toward 'inclusionary zoning,' where the government trades development rights for public benefits. By offering floor-area-ratio bonuses, the city reduces the financial risk for developers while creating a sustainable pipeline of subsidized housing without relying solely on direct public construction.
