Home Renovation Market in Japan: Key Research Findings 2023

Home Renovation Market Size Projected to be Worth 7.3 Trillion Yen in 2022 and 7.4 Trillion Yen in 2023

Yano Research Institute (the President, Takashi Mizukoshi) carried out a survey on the domestic home renovation market and found out the current status, trends of market players, and future outlook.

Home Renovation Market Size Transition and Forecast
Home Renovation Market Size Transition and Forecast
Long-Term Forecast for Home Renovation Market Size Until 2030
Long-Term Forecast for Home Renovation Market Size Until 2030

Market Overview

The home renovation market is estimated to have grown by 5.8% from the preceding year to 7,287,700 million yen in 2022. Viewing by field, while “refurbishments” (as a total of refurbishment of space more than 10m2 as well as refurbishment of space 10m2 or less) declined by 3.6% on year-on-year basis, “facility repairing and maintenance” and “furniture and interior” grew by 6.6% and 6.4%, respectively, on the same basis.

Negative impact of the pandemic lessened in 2022, as activity restrictions like store closures and voluntary staying-home has been eased. Along with the stable demand for home renovation, which expanded during the COVID situation as people stayed longer hours at home (which increased people's interests in dwelling spaces), and the rise in price of home renovation per project due to soaring building material prices and labor prices, the home renovation market has grown from the previous year.

Noteworthy Topics

The Rise of High-Performance Home Renovations

Against the backdrop of growing needs to secure a good housing stock for the realization of a decarbonized society as well as to deal with repeated disasters, renovations to increase home performance, such as insulation, earthquake resistance and barrier-free, are on the rise.

Home renovation companies are increasing their focus on packaged proposals for improving home performance, including the implementation of preliminary assessments of insulation and earthquake resistance. Although the demand for performance-enhancing renovations has yet to materialize, there is ample room for growth in demand as subsidies by the national and local governments, as well as the PR activities by building material manufacturers, are contributing to the increase of consumer awareness towards high performance homes.

Future Outlook

With increased opportunity to spend more on outings (travel, dining out, events, etc.,) along with the shift of the legal status of the COVID-19 to Category 5 under the Infectious Diseases Act, the demand for home renovation, which temporarily surged during the pandemic, may shrink in 2023.

However, there are also encouraging trends for the home renovation market. While the Dankai Junior generation (baby boomer juniors in Japan, born from 1971 to 1974) enters the right age to renovate their homes, homeowners who intended to move due to lifestyle changes are shifting to home remodeling in consideration of the skyrocketing real estate prices.

Moreover, with the price per project rising due to soaring material costs and increase of high-performance home renovation deals, the home renovation market is expected to remain strong for years to come.

Research Outline

1.Research Period: April to June 2023
2.Research Object: Companies in the business of home renovation
3.Research Methogology: Face-to-face interviews by our expert researchers, supplementary survey via telephone or mail, and literature research.

What is the Home Renovation Market?

The home renovation market in this research is defined as the market of renovations conducted for and paid by residents. Therefore, renovations of rented homes by their owners for the purpose of attracting tenants, renovations of company-owned residence, and large-scale repair works of entire apartment building by use of reserve fund for repairs, are not included. The home renovation market in this research indicates the following four categories: 1) Refurbishment of space more than 10m2, 2) Refurbishment of space 10m2 or less, 3) Facility repairing and maintenance costs, and 4) Furniture and interior costs.

<Products and Services in the Market>

1) Refurbishment of space more than 10 square meters, 2) Refurbishment of space 10 square meters or less,3) Facility repairing and maintenance costs, 4) Furniture and interior costs

Published Report

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