Companies moving from Tokyo is a win for rural Japan

Living in rural Japan has given me a perspective I never had when I first moved here and lived smack-bang in downtown Tokyo. While the city has always been a magnet for talent and opportunity, the downside is glaring, with higher rents, overworked employees, and an urban sprawl that feels exhausting. A recent survey I saw from Tokyo Shōkō Research had a nice glimmer of positivity, though! 

After moving to rural Japan several years back, now, I'm a huge advocate for keeping our local talent local! Companies actually moving outside Tokyo is a huge positive step in this. 

The survey found that in fiscal 2024, 16,271 Japanese companies moved their head offices out of Tokyo, which was an increase of nearly 19 percent from the previous year. While Tokyo still dominates in terms of talent and market demand, the intense competition and high costs are pushing businesses (especially in the service, information, and retail sectors) to set up shop elsewhere. Small and medium-sized companies are leading the way in that regard, with 80 percent of relocations coming from firms with capital of under ¥10 million.

Tokyo's neighboring prefectures like Saitama, Chiba, and Kanagawa are benefiting the most from these moves, showing the biggest net inflows of new head offices. However, even regions like Kyushu and Chubu are seeing new companies arrive, often drawn by large projects such as TSMC's new Kumamoto factory.

As someone living outside the Tokyo bubble, I see this as a real win for rural areas. One challenge of urban migration here has always been the lack of local opportunities. If companies continue moving jobs and offices out of central Tokyo, it could create real employment options in different regions while easing some of the pressures on the capital.

More companies in regional Japan mean more jobs, more local spending, and a chance for places like mine to thrive without losing young talent to Tokyo.

I know we have some City-Cost bloggers in Saitama and Chiba (and other regions!) -- have you noticed any uptick in businesses moving to your areas?