Oversupply of Properties in Japan Creates Unique Opportunity for Buyers
A Housing Crisis of a Different Kind
While many parts of the world struggle with a housing shortage, Japan is facing an unusual problem – an oversupply of properties. As of 2023, the country has over 9 million vacant homes, known as “akiyas,” with some selling for as low as $10,000. These abandoned properties, often left empty for decades, are scattered across rural areas and big cities, offering a unique opportunity for buyers with creative ideas.
Demographic Changes Drive the Akiya Problem
The rise in abandoned houses in Japan is largely attributed to a population crisis. With a fertility rate of 1.2 births per woman as of 2023, Japan’s population is aging rapidly. Death rates have surpassed birth rates, leading to an increasing elderly population. This demographic shift has resulted in a surge in housing construction, which has worsened the akiya problem.
Urban Migration and Stigma Contribute to the Issue
Urban migration is another significant factor contributing to Japan’s abandoned houses. As younger generations move to cities for work, rural areas are left with aging populations who may pass away or be unable to maintain their homes. Locals often view akiyas as a burden, and even associate them with superstition, believing they might be haunted or bring bad luck.
Overseas Buyers Take Notice
Despite the challenges, Japan’s akiyas are gaining attention from overseas buyers. With the pandemic, remote work trends, and shifting lifestyle preferences, there has been an increase in interest and purchases of akiyas. Foreign buyers, including young investors and retirees, are seeking second homes, vacation properties, or renovation projects.
A Success Story: Anton Wormann
Anton Wormann, a 32-year-old from Sweden, fell in love with Japan after visiting the country on a work trip. He discovered that Japan was selling homes for cheap and decided to purchase one for himself. Six years later, Wormann owns seven akiyas and works as a full-time content creator and real estate investor in Japan. He has completed renovations on three of his properties and is currently working on finishing up the other four renovations.
Experts Weigh In
Experts agree that akiyas can be a good investment for certain groups, particularly hobbyists, DIY renovators, or those seeking a quiet countryside retreat. However, they may not be ideal for institutional investors or those looking for quick or large returns, due to high renovation costs and limited resale potential in some areas. It’s essential to expect that costs can be substantial, especially if the house needs major structural work, and to consider the language barrier and complex home-buying process.
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