No.3415
12/21/2023

Housing Trends in Japan: Key Research Findings 2023

Soaring House Prices Reduced Intentions to Purchase New Detached Houses but Invigorated Secondhand Home Business

Yano Research Institute (the President, Takashi Mizukoshi) carried out a survey on the housing market in Japan and found out current market status, trends of market players, and future perspectives.


Summary of Research Findings

Due to the rising housing prices caused by increased material price and labor costs, hesitation in consumption for detached custom-built houses has been continued. In such a circumstance, shrinkage in floor area per house, and increase in standardized custom-built houses and one-story houses have been observed. Therefore, housemakers are required to create such houses to have some tricks to look and feel more spacious and comfortable than they truly are.

On the other hand, because the largest customer segment of primary housing acquirers continues to be dual-income families and families with small children, both housemakers and housebuilders are proactive in promoting intangible aspect of housing, such as the comfortable environment for domestic chores, storage that suits to lifestyles, and safety for children. By 2030, as an image of housing, intelligence in housing such as connection of network and sensors, or resilience and robustness against ever-fiercer disasters are likely to show advancement.

Noteworthy Topics

Major Housemakers’ Product Trends

As a trend of products provided by housemakers, they sell long-term durable houses, net zero energy houses (ZEHs), or lifecycle carbon minus (LCCM) houses to those customers with the income level middle to upper or affluent customers affordable to buy newly built detached houses even housing prices are rising, and who are also environmentally conscious at the same time.
Meanwhile, they sell secondhand homes with more reasonable prices than newly-built detached houses to those middle-level income customers who are not affordable for newly-built detached houses, and is propelling house stock business that renovates or remodel used homes.
Furthermore, as they are strengthening overseas housing market, the living methods and technologies overseas may be imported, which may cause innovation to housing industry in Japan.

Research Outline

1.Research Period: August to October 2023
2.Research Object: Major housemakers, housebuilders/building contractors, condominium manufacturers, etc.
3.Research Methogology: Face-to-face interviews (including online) by expert researchers and literature research

<Products and Services in the Market>

1) Detached house market, 2) Condominium & apartment market, 3) Housing market by construction method (prefabricated, wooden, 2-by-4, condominiums), 4) Noteworthy housing market (housing for the elderly, houses and apartments for rents, and secondhand home), 5) Other related markets

Published Report

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