Youth hostels
Youth hostels (ユースホステル yūsu hosuteru, often just called yūsu or abbreviated "YH") can be comparatively expensive in Japan, especially if you opt for dinner and breakfast and are not a HI member, in which case the price for a single night may be over ¥5000. For HI members, though, a simple stay can cost as little as ¥1500 depending on location and season. As elsewhere, some are concrete cellblocks run like reform schools, while others are wonderful cottages in scenic spots. There are even a number of temples that run hostels as a sideline. Do some groundwork before choosing where to go, the Japan Youth Hostel page is a good place to start. Many have curfews and dorms are sex-segregated.
Camping
Camping is the cheapest way to get a night's sleep in Japan. There is an extensive network of camping grounds throughout the country; naturally, most are away from the big cities. Transportation to them can also be problematic, as few buses may go there. Prices may vary from nominal fees (¥500) to large bungalows that cost more than many hotel rooms (¥13000 or more).
Camping wild is illegal in most of Japan, although you can always try asking for permission, or simply pitch your tent late and leave early. Many larger city parks may in fact have large numbers of blue tarp tents with homeless in them.
Campsites in Japan are known as kyanpu-jo (キャンプ場), while sites designed for cars are known as ōto-kyanpu-jo. The latter tend to be far more expensive than the former (¥5000 or so), so should be avoided by those setting out on foot unless they also have lower-key accommodations available. Campsites are often located near onsen, which can be quite convenient.
The National Camping Association of Japan [27] helps maintain Campjo.com [28], a database of (nearly) all campsites in Japan. Unfortunately the listing is only in Japanese. the JNTO [29] website has a fairly extensive list (in PDF format) of campgrounds in English.
Nojuku
For the real budget traveller wanting to get by on the cheap in Japan is the option of nojuku (野宿). This is Japanese for "sleeping outside", and although it may seem quite strange to Westerners, a lot of young Japanese do this when they travel. Thanks to a low crime rate and relatively stable climate, nojuku is a genuinely viable option if you're travelling in a group or feel confident doing it on your own. Common nojuku places include train stations, michi no eki (road service stations), or basically anywhere that has some kind of shelter and public toilets nearby.
Those worrying about shower facilities will be delighted to know that Japan is blessed with cheap public facilities pretty much everywhere - notably onsen, or hot springs. Even if you can't find an onsen, sento (public baths), or sauna are also an option.
Bear in mind nojuku is only really viable in the summer months, although in the northern island of Hokkaido even in summer the temperature may dip during the night. On the other hand, there's much more scope for nojuku on Okinawa (although public facilities on the smaller islands are lacking).
Nojuku is not really recommended for first-time travellers to Japan, but for those with some experience, it can be a great way to get into the 'onsen' culture, meet other fellow nojuku travellers, and most of all travel very cheaply when coupled with hitchhiking.
From; http://wikitravel.org/en/Japan
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