I mean that's a weird way to describe Tokyo but it does work. Your last point still stands though & I'm not sure where the tipping point is.
It's a very special situation on its own, but buying a house will usually get you into the 30+ years mortgage plans, and old buildings are earthquake hazards so I wouldn't call them high quality. Rents haven't much fallen even as inflation grew, and cheap places like Leopalaces are a hell to live in. All in all it looks to me to be a hard to live town if you're not in a decently good paying job.