According to official government data, as of 2023, there are 9 million “akiya” (empty houses) across Japan.
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With much of the world facing a housing shortage, buying a home can feel like an impossible task. But that’s not the case in Japan, which is dealing with an oversupply of real estate.
Japan has more than 9 million “akiyas” (empty houses) as of 2023, according to government datasome of which are selling for less than $10,000.
Often abandoned and vacant for decades, these homes are located in rural areas and large cities, providing unique opportunities for creative buyers.
Explanation of “Autumn Night” in Japan
The increase in the number of abandoned houses in Japan is largely due to a demographic crisis, as its fertility rate has dropped to record low As of 2023, there will be 1.2 births per woman. mortality rate have surpassed birth rate In Japan, as the elderly population continues to increase.
Tetsuya Kaneko, head of research and consulting at Savills Japan, told CNBC Make It: “The Akiya problem has been around for decades and has its roots in Japan’s postwar economic boom, which led to a surge in housing construction.”
“This problem became more apparent in the 1990s as Japan’s economy slowed, and is getting worse as demographics continue to change,” Kaneko said.
Urban migration is another important factor in Japan’s abandoned houses. “Rural areas will see an aging population as younger generations move to cities for work, and they may die or be unable to maintain their homes,” he added.
Kaneko said that among locals, Qiuye is often insulted and even regarded as a “burden.” Therefore, even if a family home is inherited by the children of an elderly parent who has passed away, the heirs are often unwilling to use or sell the property themselves, resulting in more abandoned homes on the market.
It’s worth noting that houses over 30 years old are “generally considered old,” Kaneko said, and locals tend to worry about safety issues, high renovation costs and rot, among other issues. Some people even associate these houses with superstition, “believing they may be haunted or bring bad luck.”
Ultimately, “many Japanese view Akiya as a depreciating item that causes more trouble than it’s worth,” says Michael, founder of the Japanese real estate blog japan cheap housingtold CNBC Make It.
“The cheapest properties are what they are for a reason,” he said, whether it’s because the location is less than ideal or the cost of renovations is expected to exceed the value of the property.
Attract foreign buyers
Japanese autumn houses are increasingly attracting attention from overseas buyers.
“We’ve noticed an upward trend in inquiries from abroad…interest in and purchases of autumn houses are increasing,” Kaneko said.
Kaneko said the rise in foreign interest in Japanese real estate is partly due to the pandemic, remote working trends and shifts in lifestyle preferences.
From young investors to retirees seeking seclusion, “more and more people are looking for second homes, vacation properties or renovation projects,” he said.
I lived in New York for about two years, and then I basically traveled all over Europe… There’s no way I could have bought a house in the places I lived.
Anton Wolman
Content creators and real estate investors
“I lived in New York for about two years, and then I basically traveled all over Europe…so I know how expensive housing is in all these big cities,” Warman told CNBC Make It. “There’s no way I could buy a house in these places where I’ve lived.”
When he found houses for sale in Japan at low prices, he decided to buy one for himself. Six years later, Warman owns seven Autumn Houses and works full-time as a content creator and real estate investor in Japan.
He has completed renovations on three properties and is currently completing renovations on four others. Today, he spent about $110,000 buying and renovating the property, which generates $11,000 a month in short-term rental income.
So, is “Autumn Night” a good investment?
Warman said “yes and no.”
Today, his properties are successfully bringing in six figures a year, but none of that would have happened if he hadn’t put in the time and effort to properly familiarize himself with the Japanese culture, language and people, he said.
“You need to create a good community and social network in Japan to be successful,” Warman said. “You can’t come here without understanding the culture, understanding how Japan works and just throw money there because it’s It would be a money pit.”
“If you try to fit in and do it the right way, I think there’s certainly a lot of opportunity, but more importantly, I think there’s an opportunity to buy cheap real estate to actually take advantage of (individuals),” Warman said.
Experts agree.
“Akiya may be a good investment for certain groups, particularly hobbyists, DIY renovators or those seeking a quiet country retreat,” Kaneko said.
“However, due to high renovation costs and limited resale potential in some areas, they may not be ideal for institutional investors or investors looking for quick or large returns,” he said, adding that scalability is also may be a limiting factor.
Kaneko adds that it’s important to anticipate that costs can be high, especially if the home requires major structural work, and take into account that the home-buying process can be complicated due to language barriers and the need to communicate with local authorities.
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