Japan housing starts rebound in August 2026 but remain below 2024 levels
Japan's housing starts increased 6.1% year on year in August 2026, supported by growth in Custom Homes, rental housing and properties built for sale. However, construction activity remains below levels recorded two years earlier.
According to figures released by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) on September 30, construction began on 63,974 housing units nationwide, compared with 60,275 in August 2025.
Rental Unit Starts increased 6.5% to 28,309 units, accounting for approximately 44% of all housing starts.
Custom Homes, properties commissioned by their future owners rather than built for sale by developers, increased 1.0% to 17,713 units.
Meanwhile, Strata Title SFH & Condo Starts increased 6.4% to 16,838 units. This category combines condominiums sold as individual units and single-family homes constructed for sale on subdivided land.
Company Housing Starts, a much smaller category, reached 1,114 units.
Housing starts remain below 2024 levels
Although the latest figures show a recovery from August 2025, the two-year comparison presents a different picture.
Japan recorded 66,823 housing starts in August 2024, compared with 60,275 in August 2025 and 63,974 in August 2026.
Despite the latest annual increase, nationwide housing starts remain 4.3% below their August 2024 level.
One important factor behind the uneven comparison is the introduction of revised building regulations in April 2025.
The changes expanded mandatory energy-efficiency standards and structural review requirements for new buildings. Builders brought some projects forward ahead of implementation, contributing to a sharp increase in starts in March 2025, followed by a substantial decline in April.
Consequently, year-on-year increases during 2026 need to be considered against the disruption to construction activity during the previous year.
Longer-term construction trends
The historical figures also provide perspective on the size of Japan's housing construction market.
Nationwide housing starts reached approximately 1.29 million units in fiscal 2006, compared with 816,388 in fiscal 2024 and 711,171 in fiscal 2025.
The latest fiscal-year total was 12.9% below the previous year, reflecting a substantial contraction in construction activity.
Rental housing remained the largest category in fiscal 2025, accounting for 308,906 starts. Custom Homes contributed 195,111 units, while Strata Title SFH & Condo Starts totaled 200,563.
Further Reading:
MLIT - Building Construction Statistics, August 2026 (Japanese only)
MLIT - Building Construction Statistics, August 2025 (Japanese only)
e-Stat - Historical Housing Starts Statistics (Japanese only)
