Dwelling houses in Japan
Housing starts in Japan fluctuated between about 800 and 900 thousand per year in the past decade. Japanese consumers are known for their preference for new properties, and low interest rates have created a favorable environment for home buyers in the past years. As a result, Japan's housing stock keeps growing and has already surpassed the number of households in the country.
Industry faces population decline
It is expected that the Japanese population will fall from 124.3 million in 2022 to around 102 million by 2050. As Japan’s population continues to shrink and the country’s leadership remains comparably strict on immigration, further depopulation of rural areas will lead to more and more homes becoming vacant. Already today, Japan has several million unoccupied homes. The demographic change is likely to impact the supply side as well, as fewer young people will enter the construction industry, thus increasing the already apparent shortage of workers.