On September 3, the Yano Research Institute released its 2023 Japan Home Renovation Market survey results, providing key insights into market trends and projections.
The study focused on four primary areas:
Major renovations exceeding 10 square meters
Minor renovations under 10 square meters
Maintenance of facilities and equipment
Furniture / Interior renovations
Overview of the Japan Home Renovation Market in 2023
Graph courtesy of the Yano Research Institute, edited by Patience Realty
The Japan home renovation market in 2023 is estimated at ¥7.3575 trillion, marking a 0.6% year-on-year (YoY) growth.
The market saw increased spending on renovation costs, particularly on projects larger than 10 square meters, which grew by 5.2%.
However, demand for smaller-scale renovations and furniture-related improvements showed a slight decline.
Growth Factors in Japan's Home Renovation Sector
Consumer behavior shifted following the reclassification of COVID-19 as a Class 5 disease.
With less focus on home improvement, demand for renovations decreased, particularly in smaller projects.
Yet, rising construction material costs and labor shortages have driven up the average price per renovation, keeping the overall Japan home renovation market stable.
Predictions for Japan Home Renovation Market in 2024 and 2025
Looking ahead, the Japan home renovation market is expected to shrink by 3.2% in 2024, totaling ¥7.1 trillion.
The decline is attributed to reduced consumer demand as more people spend less time at home post-pandemic.
However, rising costs and increased demand for high-value renovations will likely keep per-project costs elevated.
The market size for 2025 is projected to further decline to ¥7 trillion, though ongoing shifts in consumer preferences and economic conditions could influence these trends.
Sources:
R.E. Port News (Japanese only)
Yano Research Institute (Japanese only at time of publishing; 491-page report available for purchase, see above source link for more details)
