Japan faces a unique housing situation with over 9 million “akiyas,” or empty houses, scattered across the country as of 2023, according to government data. Unlike the global housing shortage, Japan struggles with an oversupply of properties due to its declining population and urban migration. Many younger generations move to cities, leaving rural homes empty. These houses, often deemed undesirable due to high renovation costs, safety concerns, and stigma, sometimes sell for under $10,000.
The trend of empty homes is rooted in the country’s post-war economic boom, followed by economic stagnation in the 1990s and a low fertility rate of 1.2 births per woman as of 2023. With more deaths than births, rural areas are left with aging populations who either can’t maintain their homes or pass away.
These “akiyas” are increasingly attracting foreign buyers seeking affordable real estate opportunities. The rise of remote work and the global pandemic have piqued interest in Japanese properties, with buyers like Swedish content creator Anton Wormann finding success by renovating and renting out akiyas.
Experts caution that these properties can be challenging investments due to renovation costs and cultural barriers. Successful long-term investment requires understanding Japanese culture and community integration. While hobbyists and DIY renovators might find value in these homes, institutional investors may find limited potential due to scalability issues and high renovation costs. Overall, Japan’s surplus housing offers a unique opportunity with specific challenges and rewards.
Original Story https://www.cnbc.com/2024/11/04/japans-millions-of-cheap-empty-houses-draw-foreign-interest-.html
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