House prices in Japan: a very short introduction

As with most countries, the cost of a house in Japan varies dramatically depending on location, size, age, and other factors. But let’s start with age, because this is something people don’t usually tell you until you start looking for properties on the ground in Japan.

Shelf life of a house in Japan

Unlike some countries, house prices in Japan generally tend to decrease radically over time. The general shelf life of a house is about 60–80 years. The main reason for this is seismic activity. Not only do house foundations erode over time due to shakes, but more importantly, earthquake prevention technology is always being refined, so there’s no intrinsic value in old houses in Japan. After about 80 years, most houses (with the exception of historic buildings) have little to no value. The value is only in the land.

That being said, there is a trend in the renovation of old houses going on right now in Japan. But they’re not cheap. A clear example of this is the restoration of “Machiya” in Kyoto. Machiya are old town houses, usually entirely wood based frames, and often with a lot of character. Hachise (no affiliation), is one of the leading restoration companies in Kyoto and their website has info in English. Check out some of their properties.

Let’s move on to the bigger picture of housing in Japan, with some stats.

National Average

As a general guideline, the average price of a single-family home in Japan falls between ¥30-50 million (approximately $273,000-$455,000 USD). This is just a starting point, though, as specific regions vastly differ.

Major Cities

Buckle up for sticker shock! In metropolises like Tokyo, Osaka, and Kyoto, expect significantly higher prices. A decent-sized house in these areas can easily cost ¥100 million or more (approximately $910,000 USD or more). Remember, land scarcity drives prices up in these densely populated centers.

Rural Areas

A more peaceful and budget-friendly option is to venture outside the major cities and you’ll find a different story. In rural areas and smaller towns, houses can be found for as low as ¥10-20 million (approximately $91,000-$182,000 USD). However, keep in mind that these might be older properties with limited amenities or farther from major transportation hubs.

Akiya

This is a Japanese word that means “empty house.” Dotting rural landscapes and even urban pockets, these abandoned homes represent a complex issue. Rising living costs in cities, coupled with an aging and shrinking population, have left many traditional wooden structures vacant, creating challenges and opportunities.

While Aikiya offer potential affordability and a chance to revitalize communities, renovation costs and legal complexities can be daunting. The government encourages Akiya revitalization projects, seeking to breathe new life into these empty homes and address both housing shortages and rural decline. Check out AkiyaJapan (no affiliation) for more details on what it takes to buy an empty home in Japan. Also check out TokyoLlama’s YouTube channel for a real-life vision of what’s at stake in taking on an Akiya project.

House price examples

• Tokyo: In a desirable Tokyo suburb, a modern 3-bedroom house could cost ¥80 million (approximately $728,000 USD), while a fixer-upper in a less popular area might start around ¥40 million (approximately $364,000 USD).
• Osaka: A spacious detached house in a quieter Osaka neighborhood could be found for ¥50 million (approximately $455,000 USD), while a central-city apartment might fetch closer to ¥70 million (approximately $638,000 USD).
• Kyoto: A charming, traditional townhouse in a Kyoto backstreet could be yours for ¥20 million (approximately $182,000 USD), while a newly built house in the suburbs could cost closer to ¥40 million (approximately $364,000 USD).
• Rural Hokkaido: In Japan’s northernmost island, a detached house with land might even be available for just ¥5 million (approximately $45,500 USD), though keep in mind potential infrastructure limitations and colder temperatures.

Beyond Price: Remember, purchasing a house in Japan involves additional costs like agent fees, taxes, and potential renovations. Factor these into your budget when comparing prices.

Final Thoughts

Whether you’re drawn to the bright lights of the city or the serenity of the countryside, Japan offers diverse housing options. Do your research, consider your lifestyle needs, and be prepared for regional price variations and a lot (and I mean a lot) of paperwork and bureaucracy to find your perfect Japanese home!