Otari Village in Nagano moves to subsidize rental housing construction

On February 17^th, the Nikkei Shimbun reported that Otari Village in northern Nagano Prefecture will introduce subsidies for rental housing construction under its proposed fiscal 2026 budget, aiming to address a worsening housing shortage as demand rises from ski resort activity and new residents.

Photo by mahiru dake on Unsplash

The village launched a similar initiative in a supplementary budget for fiscal 2025, allocating ¥16 million. For the new fiscal year, Otari plans to earmark ¥25 million.

Under the scheme, the subsidy ceiling will be calculated by multiplying ¥80,000 by the exclusive residential floor area (in square meters), with a maximum grant of ¥25 million. Depending on the level of applications, the village may consider increasing the allocation through a supplementary budget.

In parallel, Otari will work to boost housing supply by promoting the circulation of vacant homes and land, as well as rebuilding and restructuring village-owned housing, including replacement projects.

Otari, located north of Hakuba, has a population of roughly 2,700. The village is home to several ski resorts, including Tsugaike Kogen, Hakuba Norikura Onsen, and Hakuba Cortina, along with a concentration of hotels and other lodging facilities.

While the broader Hakuba area continues to attract growing numbers of skiers, Otari’s long-standing residents engaged in food and accommodation businesses are aging. As a result, the workforce increasingly relies on labor from outside the village.

Although Otari introduces prospective migrants to available village housing, officials say supply has failed to keep pace with the influx of workers. Many are therefore forced to live in nearby municipalities such as Omachi City and Ogawa Village.

Source:

Nikkei Shimbun (Japanese only; paywalled)