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With a shrinking population and more than 10 million abandoned properties, the country is straining to match houses with curious buyers.
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By Tim Hornyak
When Jaya Thursfield found a house he wanted to buy in Japan a few years ago, friends and family told him to forget it. The place wasn’t worth the trouble, they said. After all, it stood in a forest of shoulder-high weeds after being abandoned about seven years earlier — one of the millions of vacant houses known as akiya, Japanese for “empty house” — throughout the country.
But Mr. Thursfield, 46, an Australian software developer, wasn’t deterred. Through the overgrown garden, he could see it was special: The black roof tiles cascaded down to slightly curving eaves that were much higher off the ground than those of most houses. The entrance hall had its own gabled tile roof. If the 2,700-square-foot house looked more like a Buddhist temple than a farmhouse, it’s because it had been built by a temple architect in 1989.
Mr. Thursfield and his Japanese-born wife, Chihiro, had moved to Japan from London in 2017 with their two young sons and a dream of buying a home with a big yard. The plan was to purchase a vacant lot and build a house on it, but land is expensive in Japan and their budget wouldn’t allow it. So they turned to the growing supply of abandoned houses, which are cheaper and often come with more land.
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They’re far from the only ones. “We would never have been able to afford a house of this quality and size if it wasn’t an akiya,” said Ms. Thursfield, 49. “And while many Japanese don’t like used homes, foreigners see a house that is cheap and are more willing to reuse and renovate to their tastes and budget.”
As Japan’s population shrinks and more properties go unclaimed, an emerging segment of buyers, feeling less tethered to overcrowded cities, is seeking out rural architecture in need of some love. The most recent government data, from the 2018 Housing and Land survey, reported about 8.5 million akiya across the country — roughly 14 percent of the country’s overall housing stock — but observers say there are many more today. The Nomura Research Institute puts the number at more than 11 million, and predicts that akiya could exceed 30 percent of all houses in Japan by 2033.
The Thursfields’ house, which sits among the paddies in southern Ibaraki Prefecture, about 45 minutes from central Tokyo, had been deserted after the previous owner’s family refused to inherit it upon the owner’s death. The local municipality took it over and put it up for auction with a 5 million yen ($38,000) minimum bid, but it failed to sell.
When it landed on the block again, Mr. Thursfield decided to try his luck. After giving it a quick inspection with an architect friend and finding no major issues despite the years of neglect, he nabbed the house for 3 million yen, about $23,000.
Houses in Japan typically decrease in value over time until they are worthless — the cultural legacy of post-World War II construction and shifting building codes — with only the land retaining value. Owners feel little incentive to maintainan aging house, and buyers often seek to demolish them and start fresh. But that can be expensive.
Others aim to preserve what’s there. “There was no way we wanted to knock it down and build something new. It was too beautiful. So we decided to renovate instead,” Mr. Thursfield said. “I’ve always been someone who likes to jump in the deep end, take a few risks, and learn new things, so I was confident that we would manage somehow.”
Since buying the farmhouse in 2019, the couple have spent about $150,000 on renovations, and there’s more to do. Mr. Thursfield has documented the project on YouTube, drawing more than 200,000 subscribers.
While the Thursfields’ house had been abandoned by the previous owner’s heirs, somehomeowners die without ever naming an inheritor. Others leave their properties to relatives who refuse to sell family land out of respect for their elders, leaving the house to wither.
“In rural areas, there is a long history of ancestral owners of akiya living in the houses and on the land,” said Kazunobu Tsutsui, a professor of rural geography and economics at Tottori University who lives in a renovated akiya built more than a century ago. “Therefore, even after moving to the city, families will not give up their akiya easily.”
Now officials on both local and national levels are taking steps to give them a push.
“Poorly maintained akiya can mar the scenery as well as endanger residents’ lives and property if they collapse,” said Kazuhiro Nagao, a city official in Sakata, along the west coast, where heavy snowfall can damage unattended structures. “We’re partly subsidizing demolitions, collecting neighborhood association reports on akiya, and trying to make owners aware of the problem by holding briefings.”
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Though the akiya problem has not had a direct impact on sales in urban markets, where high-rises continue to go up, the potential hazards to communities posed by empty houses are growing along with their numbers, according to Akira Daido, chief consultant at the Nomura Research Institute’s Consulting Division. Mr. Daido pointed to a recent legal revision that allows local authorities to effectively raise the property taxes on neglected houses if the owners ignore municipal requests to maintain or demolish them. In another sign of rising concern, the government has approved a plan by the city of Kyoto, where inventory is tight yet some 15,000 houses sit empty, to tax the owners of those empty homes — a first in Japan.
Akiya are increasingly seen not just as a threat to suburban and rural markets, but to the emotional health of the country, sparking family disputes over inherited properties. That, in turn, has led to a cottage industry of akiya consultants like Takamitsu Wada, the chief executive of Akiya Katsuyo, who acts as a counselor for squabbling relatives, often urging them to act before their properties become a lost cause.
“In many cases, the parents die without making clear their wishes regarding the family home, or they develop dementia and find it difficult to discuss these things,” Mr. Wada said. “In such cases, the children may feel guilty about getting rid of the family home, and may often choose to leave it unoccupied.”
Municipalities across Japan are also compiling listings of vacant houses for sale or rent. Known as “akiya banks,” they are often bare-bones web pages with a few underwhelming photos. Some have partnered with private-sector companies like At Home, which currently lists akiya in 658 of Japan’s 1,741 municipalities.
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“Akiya banks are run by municipal office workers, the majority of which often do not have any experience in real estate,” said, Matthew Ketchum, a Pittsburgh native and co-founder of Akiya & Inaka, a Tokyo-based real estate consultancy. “The existing solutions do not align with the needs of modern buyers and sellers.”
Mr. Ketchum’s firm is one of several that have sprung up to capitalize on the akiya glut, matching vacant homes with curious buyers. Akiya & Inaka’s listings include a 2,195-square-foot home built in 1983 in the suburb of Hachioji, Tokyo, with a small garden and a reception room featuring a raised tatami floor, tokonoma alcove and a rare wickerwork ceiling of woven cedar. The property is listed at 36 million yen, about $272,000.
“Every Japanese agent we talked to advised us to demolish this place,” said the house’s owner, Takahiro Okada, 85, a retired journalist. He and his wife Reiko, 86, had been renting out the house but decided to sell after their tenant left last year. Their children weren’t interested in it, so the property lingered. Different owners might have torn it down and sold the land.
“If we all do that, we’re losing Japanese culture,” Ms. Okada said. “When seen from an international perspective, and through the eyes of foreigners, Japanese things can have inherent uniqueness and value.”
Mr. Ketchum and his partner, Parker J. Allen, said they’re now fielding about five times the number of inquiries as when they began in 2020. “At first, we were getting most of our inquiries from Japan residents, Australians and Singaporeans,” Mr. Ketchum said. “That has changed now, with the vast majority of our international clients being based in the U.S.”
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Many clients have been spurred by the pandemic, which “definitely changed the mind-set of people living in Japan regarding the idea of rural living,” Mr. Allen said. “The fact that property in the Japanese countryside is by and large undervalued and there are viable properties that are almost turnkey has finally dawned on these people.”
One person it did not dawn on recently is Alex Kerr, an author and Japanologist originally from Maryland, who became an akiya owner in 1973 when he acquired an abandoned country house (known as a minka) in the mountains of Shikoku, the smallest of Japan’s four main islands, for $1,800.
Named Chiiori, or House of the Flute, the thatched-roof aerie is about 300 years old. Inside, it’s a shadowy space of polished wood floorboards, a large sunken irori hearth and giant overhead rafters wreathed in smoke. Outside, mist rises from the Kumatani River in the gorge below.
Mr. Kerr, 70, is the first to admit that akiya can be money pits. He has spent decades and roughly $700,000 (“about half” of which came from a government grant, he said) maintaining it, and now rents it out as a guesthouse. It’s one of about 40 derelict Japanese properties he has restored over the years, all the while preaching the importance of conservation and rural revitalization to municipalities, companies and homeowners who may not know what makes their properties special.
“Many cultures have wooden architecture, but when it comes to the techniques of carpentry, Japan overwhelmingly leads the world in joinery and use of materials, as well as use of space and choreography,” said Mr. Kerr, whose books include the memoir “Lost Japan.” “When it comes to old minka houses, you have all that, set in a natural environment, and within the context of being cheap. In the Cotswolds, wooden houses cost a fortune, but in Japan they’re being thrown away.”
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But he has taken note as real estate companies have begun to snap up habitable antique houses and market them to non-Japanese luxury buyers. He also pointed to young international buyers opening Airbnb rentals in erstwhile akiya and attending events like minka conferences.
Last year, the British videographer Sam King and his wife, Nanami Sakurai, fled Tokyo with the help of an architect who introduced them to an unlisted akiya in the mountains of Otsuki, 50 miles west of Tokyo.
The couple wanted to be “closer to nature on our days off,” said Mr. King, 35. “We also could not afford to buy so much as a shoe box in the city, so the thought of being able to get somewhere with a lot more space was very appealing so we can start a family and also own pets without any trouble.”
The house, in a depopulated community of mostly older residents, had been abandoned for roughly two years after the death of its owner. The price was 12 million yen, or about $88,000.
Set in a garden among plum and kiwi trees, the cottage has traditional tatami mats, shoji-paper and fusuma sliding doors, chunky wooden cabinets and tokonoma alcoves. The previous owner left behind a trove of personal possessions — paintings of Mt. Fuji, rolls of Japanese calligraphy, old tape players, kites, guitars, skis, crockery. The house is about 50 years old and needs to be updated to modern standards. Mr. King estimated the initial renovations, such as redoing the kitchen and bathroom, will cost $20,000 to $30,000. It’s well worth it to escape the city.
“We’d like to improve upon it quite a bit as it’s going to be our home, so we’ll probably end up spending over $100,000 in total on the project,” he said. “But we’ll hopefully end up with our dream home.”
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FAQs
Why Japan is giving away $8 million free houses? ›
Throughout the country there are as many as 8 million vacant or abandoned homes and the Japanese government is setting up a program to reduce the number of houses left empty. Houses that are left empty have become a problem for homeowners to manage or they don't want to pay the taxes anymore.
Why does Japan have so many empty houses? ›The plan was to purchase a vacant lot and build a house on it, but land is expensive in Japan and their budget wouldn't allow it. So they turned to the growing supply of abandoned houses, which are cheaper and often come with more land.
Is it true you can buy a house in Japan for $500? ›Yes, you really can buy a house for under $500 in Japan
Yes, there are really houses in Japan that are listed for $500 — in fact there are many. But what those articles don't show is what $500 will actually get you. Here's an example of an abandoned house listed for sale for 5万円 (about $360 at the time of writing).
That being said, Japanese houses are mostly built to last 20–30 years and after that age their value pretty much falls to the value of the land they sit on. Actually at 30+ years they detract from the value of the property as they must be torn down and the materials disposed of which costs money.
Can foreigners buying abandoned houses in Japan? ›Like with any real estate property, foreigners or "gaijin" can purchase Akiya homes. The same rules in purchasing real estate applied to both Japanese and foreigners. Unlike other Asian countries, there aren't restrictions, and you can own land on a freehold basis.
What does Japan do with homeless? ›Support. In Western Japan, especially Osaka, there are many volunteer organisations and religious groups. The majority of these organisations are Christian, and provide assistance and emergency meal feeding to the homeless population. This kind of support is also provided in Yokohama.
Why do houses in Japan only last 30 years? ›The notion that Japanese houses self-destruct after three decades is a function of the government's plan to keep the economy humming with a constant need for residential construction, since it was the the Land Ministry that concocted the 30-year time limit.
Why aren t houses built to last in Japan? ›Unlike in other countries, homes in Japan rapidly depreciate over time, becoming nearly valueless 20-30 years after they were built. If someone moves out of a home before that time frame, the house is seen as having no value and is demolished in favor of the land, which is seen as being high in value.
How much is a house in Japan in US dollar? ›The average price of a new house listed for sale in Japan last month was ¥35,760,000 (about $337,000), which is lower than the median house sale price of 2022's first quarter in the US, which was $428,700.
Can I live in Japan if I buy a house? ›The short answer is: YES! Foreigners have (almost) exactly the same rights as Japanese citizens when it comes to purchasing property or land in Japan, whether you have a permanent resident status or not, or even based on your visa type.
How much is the average house in Japan in USD? ›
Just like renting a space, buying a home in Japan requires a good deal of money and savings. Japan's house prices start around 25,000,000 JPY (230,000 USD) and go up from there. The overall national average for buying a house is 35,760,000 JPY (337,000 USD).
Can an American buy a home in Japan? ›In Japan, unlike other countries, there are no restrictions for foreigners based on whether or not they have permanent resident status, Japanese nationality, or based on their visa type. This means that foreigners are allowed to own both land and buildings in Japan as real estate properties.
Why is Japan so expensive to live? ›A lot of factors contribute to making Japan more developed than other Asian countries and therefore more expensive to live in or visit. First of all, Japan is a fairly remote island, and this has made it difficult for other countries to engage with its economy, allowing Japan to develop on its own terms.
How much is the rent in Japan? ›The nationwide average monthly rent, not including utilities, for a one room apartment (20-40 square meters) is between 50,000 and 70,000 yen. Rent for similarly sized apartments in central Tokyo and popular neighbourhoods nearby usually start from around 100,000 yen.
Can I live in Japan if I buy land? ›Buying a property in Japan does not give the foreigner an automatic right to residence. Most immigration-related matters are looked after by the Immigration Bureau (nyukoku kanrikyoku), which has branches across Japan.
Is it illegal to go into abandoned buildings in Japan? ›Potential Dangers
Otherwise, it's trespassing. If you need to pry open a door or window to enter, it is breaking and entering. Taking an item, abandoned or not, from the building could be considered theft.
- No residency requirement, no special purchase process for foreigners. Unlike in many countries, there are no legal restrictions on foreigners buying property in Japan. ...
- No special taxes on foreigners. ...
- No restrictions on ownership. ...
- Very low mortgage rates. ...
- Low inflation. ...
- Weak yen. ...
- Value and affordability.
| Country | Homeless (avg. day) | Data year |
|---|---|---|
| United States | 582,462 | 2022 |
| Yemen | 3,858,000 | 2020 |
| Vietnam | 162,000 | 2020 |
| Zimbabwe | 1,200,000 | 2013 |
At 0.003% or roughly 1 homeless person per 34,000 residents, Japan is the country with the world's lowest rate of homelessness.
What country has the most homeless people? ›- Statistics on global homelessness. ...
- Europe. ...
- Asia. ...
- Africa. ...
- North America. ...
- South America. ...
- Oceania. ...
- Reliability of these statistics- There are different definitions of homelessness.
Can you live in Japan without citizenship? ›
A person who already stayid in Japan and would like to extend stay for long period of time can apply for permanent resident visa. You can get permission to live in Japan with no period, without changing your nationality.
Where in Japan will pay you to move there? ›Mishima, Japan
The village of Mishima, which covers three small southern islands, has long been offering 85,000 yen ($800) per month for three years to people who move there, as well as a lump payment of 300,000 yen or a calf.
If you are married to a Japanese national and want to live in Japan with him/her, you will need a visa for a Spouse or Child of a Japanese National. It is important that your marriage is legal in Japan. This means that you have lodged your marriage at a municipality office where you reside and it is accepted.
Are Japanese houses cold? ›With the exception of Hokkaido, homes in Japan generally lack central heating and can get very cold during the winter. While you can set your air conditioner to the heating mode, this may cause air to become dry, and the cost of electricity can quickly add up.
How hard is it to own a house in Japan? ›There are no legal restrictions on buying a property in Japan for foreigners. In fact, the same rules and legal procedures apply to both Japanese and non-Japanese buyers. There is no need to possess citizenship or residency to buy a house in Japan.
How often do Japanese rebuild their homes? ›An unusual feature of Japanese housing is that houses are presumed to have a limited lifespan, and are often torn down and rebuilt after a few decades, generally twenty years for wooden buildings and thirty years for concrete buildings – see regulations for details.
Do homes in Japan appreciate? ›Sure, on average, they do. However, the idea that “Japanese buildings depreciate while American and British buildings appreciate” is false. One of the reasons for this misconception is that in Japan, Japanese houses and buildings are separate. For example, for tax purposes, they are two different entities.
Why are Japanese homes so small? ›The main one being land scarcity due to the fact that 73% of the land available is considered mountainous, and a large percentage of the flat land is used for farming and agriculture purposes. For these reasons, ergo high property prices and as a result, small dwellings are often the answer to residents' choices.
How long are home loans in Japan? ›The lifespan of a mortgage in Japan is between 1-35 years. In general, applicants between 20 and 69 years old will be accepted, but you should plan to have your loan fully paid by the age of 75-80 years old to be eligible for your chosen time span.
How much is $10 US dollars in Japan? ›| Conversion rates US Dollar / Japanese Yen | |
|---|---|
| 1 USD | 133.89500 JPY |
| 5 USD | 669.47500 JPY |
| 10 USD | 1338.95000 JPY |
| 20 USD | 2677.90000 JPY |
Can Americans retire in Japan? ›
Japan is a stunning destination and highly sought after by Americans who want to retire abroad. It is very difficult to gain residency in Japan, but if you do, it can be a great place to retire.
How much is a gallon of milk in Japan? ›The cost of groceries is about the same throughout Japan: A gallon of milk costs about USD$4.50-$5.50. A dozen eggs cost USD$1.62-$1.98. One pound of rice costs USD$1.35-$1.65.
How long can a US citizen stay in Japan? ›You must have a valid passport and an onward/return ticket for tourist/business "visa free" stays of up to 90 days. Your passport must be valid for the entire time you are staying in Japan.
How hard is it for an American to buy a house in Japan? ›As it turns out, the requirements for owning property and land in Japan are incredibly lax, which is frankly shocking considering Japan's love of red tape. There are no visa requirements whatsoever, and people living outside of Japan can even purchase and own land without ever having set foot in the country.
How much money do you need to live in Japan as a foreigner? ›How much does it cost to move to Japan? You will need to have approximately 500,000 yen available to you in accessible cash so you can cover costs to set up your apartment and sustain yourself until the first pay day. If you're a westerner, you can use a website like Skyscanner to calculate travel costs.
How much money do you need to retire comfortably in Japan? ›In a survey conducted in 2020, close to 17 percent of the respondents in Japan stated that their own household needed to save up to 25 million Japanese yen before going into retirement. At the same time, a share of 15.1 percent thought that up to 15 million yen were needed before retirement.
How much is minimum wage in Japan? ›Expats that want to make Japan their home for the long term can move there for different reasons. However, first, you need to apply for a type of long-stay visa. The Japanese long-term stay visas are divided into several categories. As such, you can get a long-stay visa for work, study, or family reunification.
Can an American live in Japan permanently? ›Traditionally, for a foreign national to obtain permanent residency (PR) in Japan (when he/she does not have a Japanese spouse or parents, for example), the applicant must have resided in Japan for at least 10 years.
How much does an acre of land cost in Japan? ›Japan has the world's highest-priced farmland by far, at an average of $101,000 per acre.
Where is the best place to live in Japan? ›
- Osaka: best for food and drink.
- Tokyo: best for work opportunities.
- Kyoto: best for climate.
- Sapporo: best for affordability.
- Tokyo: best for families.
- Nagoya: best for culture.
The average monthly salary for employees in Japan can range from approximately 130,000 JPY (1,128 USD) to 2,300,000 JPY (19,963 USD). Note: The upper range of salaries is the highest average and not the maximum salary Japanese people earn.
Are groceries expensive in Japan? ›It is no surprise that just like pretty much anything else in Tokyo, one of the most expensive cities in the world, grocery shopping can be incredibly expensive.
How much money is good to live in Japan? ›Monthly living expenses
According to a survey by the Ministry of Internal Affairs and Communications, the average monthly consumption expenditure (living expenses for individuals and families to sustain their lives) for those living alone (58.5 years old on average) for the year 2020 was about ¥150,000.
Clear bottles containing pristine water will vary in price by volume, but generally cost 100-150 yen. Please note that the bottled water in Japan is, in general, soft, and not hard.
How much is food in Japan in US dollars? ›Costs for a three-course meal for one person can range anywhere from 5,000 to 10,000 yen (about $45 to $90 USD), or even higher, at more expensive places.
How much is gas in Japan? ›Tokyo Gasoline prices, litre
Gasoline prices per litre, octane-95: We show prices for Tokyo from 09-Jan-2023 to 17-Apr-2023. The average value for Tokyo during that period was 161.81 Japanese Yen with a minimum of 160.10 Japanese Yen on 27-Feb-2023 and a maximum of 165.61 Japanese Yen on 17-Apr-2023.
The $35.2 billion of United States real estate now owned by the Japanese accounts for slightly more than 1 percent of the $2.5 trillion total, said Kenneth Leventhal, head of the firm that bears his name.
Why is Japan still a cash society? ›Assessing the reasons why Japanese consumers prefer cash, Statista notes its security and reliability are highly valued. Over 55 percent of respondents cited concerns over personal information leakage as being a major drawback of cashless options.
What are Japan's witch houses? ›They are the “witch houses” of Japan — mysterious tokens of social decay in one of the wealthiest societies in the world. Called akiya, or abandoned homes, they have spread like mould in the past few years.
What caused the Japanese real estate bubble? ›
Through the creation of economic policies that cultivated the marketability of assets, eased the access to credit, and encouraged speculation, the Japanese government started a prolonged and exacerbated Japanese asset price bubble.
Is living in Japan cheaper than the US? ›In the US, the average price per square foot to buy a residence in the city center is around $335, whereas in Japan a comparable figure is $760. This is an approximate 57% increase.
Can you buy a home in Japan as a US citizen? ›In Japan, unlike other countries, there are no restrictions for foreigners based on whether or not they have permanent resident status, Japanese nationality, or based on their visa type. This means that foreigners are allowed to own both land and buildings in Japan as real estate properties.
What country owns the most US property? ›In a study of USDA reports, Pew found the foreign country that owns the most U.S. land is not China or Russia, but rather, our neighbors north: Canada. Investors from the Great White North, according to the USDA, own about 12.8 million acres of U.S. land, most of it forest land.
Is Japan becoming cashless? ›This is what Kanetsugu Mike, chairman of the Japanese Bankers Association, said back in February of 2021. On top of that, in recent years, cashless payments have been promoted in Japan, with the Japanese government planning to double cashless transactions to account for 40% of consumption by 2025.
Is Japan going cashless? ›TOKYO -- Cashless payments have grown to account for more than one-third of all consumption in Japan, fueled by the demand for touchless purchasing options during the COVID-19 pandemic.
What percentage of Japan is cashless? ›According to its roadmap, the percentage of cashless payments in Japan rose from 13.2% in 2010 to 32.5% in 2021.
Can I live in Japan if I marry a Japanese? ›If you are married to a Japanese national and want to live in Japan with him/her, you will need a visa for a Spouse or Child of a Japanese National. It is important that your marriage is legal in Japan. This means that you have lodged your marriage at a municipality office where you reside and it is accepted.
What gender is the Japanese house? ›Amber Mary Bain (born 13 July 1995), known professionally as The Japanese House, is an English indie pop musician from Buckinghamshire. Bain contributes vocals and plays guitar, synthesizer and keyboard for her music.
Why are Japanese houses so simple? ›The ancient and medieval Japanese found a simple solution to these difficulties: do not build to last. Rather than resisting the environment, houses were, therefore, built to follow its whims and, if the worst happened, they were designed to be easily rebuilt again.
What is the average price of a house in Japan? ›
Japan's house prices start around 25,000,000 JPY (230,000 USD) and go up from there. The overall national average for buying a house is 35,760,000 JPY (337,000 USD).
Are property prices falling in Japan? ›The price started to rise after 2015 and reached the highest ever in 2018, then declined after that, but started to rise again from 2021. In the second quarter in 2022, it has risen to almost the same level high as that in 2018 and has been continuing to rise since then.
Is it a good time to buy property in Japan? ›Well broadly speaking all the property listings are now about 10-15% cheaper than the same time last year because they are priced in yen. So if you are investing from overseas and paying in foreign currency, now is an excellent time to take advantage of the weak yen and find that dream property!