Japan continues to face a population decline and aging population crisis. Along with it comes a host of other problems. One such problem is an explosion of abandoned homes with no occupants. New data from Japan’s government shows that the problem is accelerating rapidly.
Over 9 million abandoned homes
This week, Japan’s Ministry of Internal Affairs and Communications announced that, as of October 2023, there were 9 million unoccupied homes throughout the country. That’s an additional 510,000 homes since the last survey in 2018.
There are a total of 65.2 million homes in Japan, which means that unoccupied houses represent 13.8% of total homes. That’s the highest percentage of unoccupied homes ever here.
While some of these empty homes have other uses (rental, villa properties, etc.), the number of homes with no secondary use is over 3.8 million—a full 42.8% of the total.
The Ministry lays the increase on Japan’s aging population. When an elderly person without family either dies in their home or moves to a long-term care facility, their house is left as-in.
Letting homes lapse into misuse
Japan’s central government, local prefectures, and NPOs have spent years figuring out what to do with unoccupied properties (Japanese: akiya, 空き家). It’s not just a simple matter of finding an owner. In some cases, the houses do have owners; it’s just that they want nothing to do with the property.
According to government statistics, 55% of acquired akiya are houses bequeathed by inheritance. However, some 30% of people who inherit a home say they plan to “leave it as is.” Only 10% are considering having the property razed.
According to one NPO, the Akiya Akichi Management Center, their most requested service is consultations from family members on what to do about an akiya. In these cases, the family has put off dealing with the property until it’s degraded.
Localities try various solutions
Degradation happens due to age and misuse. One of the most common issues is illegal dumping, where people use an abandoned home or lot as a place to throw out their small – and even large – garbage for free. (And yes, that’s against the law – but that doesn’t stop people from doing it.)
After a certain point, the home is in such bad condition that it can no longer be sold or repurposed. That risks the property becoming classified by the local government as a “Designated Unoccupied House” (特定空き家; tokutei akiya). Such properties lose their special tax break status and can even be seized and reclaimed by the local government.
There are some 41,476 Designated Unoccupied Houses in Japan as of 2022. Unfortunately, there are now so many akiya that local governments say they don’t have the person-power to keep up.
Other areas are taking more aggressive measures to combat the rise of akiya. Kyoto now assesses an “akiya tax” on any property it deems abandoned. Many areas also have special incentives and tax breaks to promote house remodeling. However, in most areas, razing the house and turning it into vacant land carries significant downside, as the absence of a dwelling means your property tax will spike.
Time to snap up property in Japan? Not so fast
Whenever news of Japan’s unoccupied houses hits the English press, a bunch of people comment about how it’s a great opportunity to move to Japan. But don’t pack your bags just yet.
First, as stated above, property in Japan that’s unoccupied has remained unoccupied for a reason. The house that stands on it is usually past the point of use. It either has to be remodeled significantly or, more likely, torn down and rebuilt from scratch. In other words, no matter how cheaply you can buy the property, it’ll require a significant investment to make it liveable.
Second, any foreigner can buy property in Japan just as a Japanese citizen could. However, that confers zero immigration benefits. In other words, just because you own property here doesn’t mean you can live in it. You still need some other reason to reside legally in Japan.
Third, if you buy a property for some other reason (e.g., to rent it out), note that you’ll owe property tax on that property as well as tax on any income you earn from renting it.
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Sources
空き家、過去最多900万戸 30年で倍増、全住宅の13．8％ 総務省. Jiji.com
県内の空き家、昨年３３万３０００戸 県が相談窓口開設. Yomiuri Shimbun
相続しても「先送り」、なぜ空き家のままに？ 解体支援の制度も手薄. Asahi Shimbun
空き家への不法投棄にご用心！NPO Akiya/Akichi Management Center
Can a foreigner purchase property in Japan? Plaza Homes
