They say the cost of living in Japan is high, and I'm sure it is, but it seems like everyone saves money on apartment items, because there is no space available for having a lot of really nice things. So, that seems to help in terms of reducing the number of things you need to buy. I'm guessing of course. :)
Well, Japan has quite a consumer culture and there are definitely no shortage of things to buy: from clothes to furniture, single purpose gadgets and, of course, space saving storage systems, etc. As for furniture, though, you're right. You don't need as much. And when everything is factored in, I would guess that the cost of living here is lower than many other countries. I can't say for sure, but that's my impression. I would never be able to live in the States as I do now in Japan with my current salary.
I really think the idea that Japan has a high cost of living is skewed. Certain things, like hotels and property are expensive, but when all is said and done, I find living here very reasonable. It's just a little different.