The Nomura Research Institute is forecasting a significant drop in new housing starts across Japan by 2030.
According to the Institute’s report published on June 20, housing starts are forecast to drop from 950,000 units in 2018 to 730,000 units in 2025. In 2030, total housing starts are forecast to be 630,000 units.
In 2030, 200,000 units are expected to be owner-occupier builds, while 270,000 units will be rental housing. However, an additional annual supply of 50,000 units of rental housing may also be possible if inheritance tax reduction allowances on rental properties continue to prove favorable.
Source: Nomura Research Institute, June 20, 2019.