On August 25th, Nikkei Veritas Editorial Committee Member Takanori Tani opined about the growing vacant and abandoned homes problem, locally known as the Akiya problem, throughout Japan.
The article on the 25th was then republished by the Nikkei Shimbun on August 27th.
Sample Akiya property, courtesy of Wikimedia Commons.
Offering a unique take on the Akiya subject, Tani San referred to Japan’s well known declining population as a cause but also offered a supplemental theory on why Akiya properties nationwide are growing; current housing start levels and Japan’s lower rate of secondhand home sales when compared to Western nations.
Below is a summary of the Tani San’s Nikkei Veritas article.
Key Statistics:
Secondhand homes made up 42.3% of Japan housing transactions in 2022.
In rural areas like Fukui Prefecture, this share is below 30%.
Approximately 800,000 new homes are added annually despite a shrinking population.
Addressing the Secondhand Housing Market's Hidden Challenges
Each year, the The Association of Real Estate Agents of Japan (Fudosan Ryutsu Keiei Kyokai, more commonly known locally as FRK) annually estimates the transaction volume of secondhand homes in Japan by analyzing property ownership transfers.
In 2022, secondhand homes accounted for 42.3% of total housing transactions.
While this figure has been rising steadily, it remains significantly lower than the 70-80% common in Western countries.
In some rural areas, such as Fukui Prefecture, the share of secondhand home transactions drops below 30%.
Percentages refer to portion of secondhand transactions estimated from all transactions in 2022. Source: The Association of Real Estate Agents of Japan via the Nikkei Shimbun, translated by Patience Realty.
Despite a shrinking population, Japan continues to add approximately 800,000 new homes each year, exacerbating the problem of vacant properties.
New housing, combined with the relatively low transaction rate of secondhand properties is largely due to persistent concerns about the condition of the buildings.
Information available to buyers is still largely limited to the property’s age, location, and layout. In some cases, issues such as water leaks are discovered only after purchase, leading to disputes.
To address this, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has been encouraging the use of third-party home inspections pre-purchase.
While in the United States, many buyers opt for inspections before purchasing, the practice is less common in Japan.
A long video showing an existing single-family home inspection in Japan. Click around to get a feel for what extent the inspector investigates the property. Near the end of the video, you can see the sample report the inspector generates for this property. Turn or auto-translated English captions for a deeper understanding of what is being said.
Furthermore, in the U.S., buyers are responsible for any issues discovered post-purchase, whereas in Japan, sellers bear this responsibility for a limited enough time to discover the issue, contributing to the slow adoption of inspections.
Government Measures and Their Impact
In 2018, MLIT introduced the Safe R Housing certification for properties that meet specific criteria, including earthquake resistance and structural soundness, to boost the secondhand housing market.
However, as of 2023, only around 2,000 properties have been certified under this program.
Another issue is the insufficient functionality of urban planning. Despite a rapidly declining population, homes continue to be built on farmland and in areas where development should be restricted.
Even in urban control zones, where development is supposed to be difficult, housing construction persists, leaving older neighborhoods riddled with vacant homes.
Wakayama Prefecture, which had the highest Akiya rate in the 2023 Housing and Land Survey, is a prime example.
While demolishing old properties and rebuilding could prevent an increase in vacant homes, the reconstruction rate stood at only 5.6% in 2022, and just 4.0% outside the Japan’s three major metropolitan areas.
The Need for Comprehensive Urban Planning
The Special Measures Law on Vacant Houses, enacted in 2015, empowered local governments to designate properties at risk of collapse or negatively impacting their surroundings as “Specified Vacant Houses,” enabling forced demolition.
By the end of 2021, about 34,000 properties were targeted for improvement, with nearly 500 demolished.
In 2023, the law was amended to include “Neglected Vacant Houses,” properties at risk of becoming Specified Vacant Houses.
Local governments can now also revoke property tax incentives for such properties and designate high-Akiya areas as “Vacant House Utilization Promotion Zones,” where the use of vacant homes can be converted to non-residential purposes.
While these measures help curb the abandonment of Akiya properties, Tani San of the Nikkei Veritas believes they fall short of addressing the underlying issues driving Japan’s vacant home crisis.
A more comprehensive approach, including economic incentives and community-driven initiatives, is crucial for lasting change.
According to Tani San, resolving Japan’s vacant home crisis, especially in rural areas, requires not just policy changes but a fundamental shift in how the nation approaches housing and urban development.
Source:
Nikkei Shimbun (Japanese only; paywalled)
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