Japanese homeownership is declining among younger generations due to several factors. Houses significantly depreciate, often becoming worthless in 20-30 years, unlike investments in other countries. This "scrap-and-build" culture is reinforced by tax codes and a preference for new homes. Societal values are shifting; buying a house is no longer seen as a universal life milestone, and decreasing marriage and birth rates remove a key incentive for home purchase. Japan's frequent natural disasters (earthquakes, typhoons) make homeownership a high-risk venture, as houses can be destroyed, leaving owners with debt and no home. While millions of "free" abandoned homes (akiya) exist, they require extensive, costly renovations and are often located in undesirable, remote areas with no amenities. A growing trend sees Japanese people valuing lifestyle choices over home ownership, increasingly opting for renovations of older homes rather than new construction.
Declining Homeownership Rates in Japan by Age Group (1983-2018)
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Newly built homes in Japan often lose all value within 20 to 30 years. [0:52]
Unlike in countries like the U.S., where houses are seen as appreciating investments, Japanese houses are typically made of wood and expected to be torn down. [0:57]
The average lifespan of demolished houses in Japan is about 30 years, compared to 67 years in the U.S. [1:12]
Japan's tax code defines the life of wooden homes as only 22 years, reinforcing the belief that homes are not meant to last longer. [1:26]
Japan's tax code table showing a 22-year lifespan for wooden residential homes
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Demolition of a Japanese house, illustrating the "scrap-and-build" culture
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This leads to a lack of maintenance, which further devalues homes and perpetuates a vicious cycle of depreciation. [1:39]
Details of a poorly maintained traditional Japanese house, showing worn wood
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Owning a house was historically an essential life milestone, especially for previous generations (50s-70s), symbolizing success through hard work and suburban homeownership. [3:47]
This traditional image no longer fits modern Japan, where people prioritize flexibility. [4:06]
Having children and getting married account for nearly 70% of all home purchases in Japan. [5:10]
Text showing that childbirth and marriage account for nearly 70% of home purchases in Japan
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The declining marriage rates in Japan (nearly 33% of men and 23% of women never married by age 50 in 2020) directly impact home purchases. [5:42]
Chart showing increasing unmarried rates for men and women in Japan by age (2020 Census)
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The traditional motivation to buy a house tied to family milestones (e.g., before kids start elementary school) is disappearing as the idea of "family" is no longer a universally required life stage. [5:58]
There's a constant risk that a house purchased for hundreds of thousands of dollars could be severely damaged or destroyed, leaving the owner with a mortgage but no home. [7:35]
While insurance may cover some costs, it doesn't always cover everything. [7:48]
Widespread devastation after the 2011 Japan earthquake and tsunami
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Flooding and strong winds during Typhoon Hagibis in Japan
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Residents lining up for relief supplies in Minamisoma after the disaster
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Renting offers a safer alternative as tenants are not responsible for repairs and do not lose a significant financial asset overnight in case of disaster. [8:24]
Many Japanese feel it's safer not to own property in such a disaster-prone environment. [8:37]
The Reality of "Free Abandoned Homes" (Akiya) [8:51]
Costly Renovations: Most free homes are 40-50 years old and abandoned, requiring substantial renovations (tens to hundreds of millions of yen) to become livable. [9:30]
Exterior of an abandoned traditional Japanese house (akiya)
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Interior of a dilapidated abandoned Japanese house undergoing renovation
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Undesirable Locations: These homes are typically in rural, depopulated areas with poor infrastructure, such as: [9:47]
Long travel times (e.g., 40 minutes by car to the nearest train station). [9:54]
Lack of nearby amenities like supermarkets or hospitals. [9:57]
