Anecdotally I spent 2 years of my undergraduate living by myself a 10 minute drive away from University in a little village outside of town. I then moved in with roommates to live walking distance between University and downtown. It's obvious from what time most of my fondest memories are.
I have read that one consequence of the Japanese practice of tearing down buildings and buying new is that you tend to get colocated with many people of the same socioeconomic class and age. We have similar forces going on in the Western world (families may prefer suburbs which also tend to sort by SES, yuppies prefer nice urban areas, etc) but I think in Japan it is a bit more deliberate.