Ah yes, a micro-apartment the same size as the average American kitchen [1], how affordable!
For comparison, Seattle WA has a minimum wage around 2.5x higher than Tokyo. Here is a larger apartment [2] that is only 1.33x more expensive than your Tokyo broom closet.
Go ahead and find something more akin to the American sized apartments (500sq+ for 1 bd) and you'll see that the prices are almost the same, with much lower wages across the board.
First one I clicked, $600 a month
https://suumo.jp/chintai/jnc_000099304610/?bc=100450374320
I can find cheaper