Japan's Unconventional Solution to the Housing Crisis

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Chapters:
0:00 - Intro
01:08 - Part 1: The Last Affordable Global City
02:48 - Part 2: So, How Are They Doing It?
03:54 - Ad Masterworks
04:54 - Part 2: So, How Are They Doing It?
08:46 - Part 3: Why Aren't We Doing It Everywhere?

Selected sources:

[korawichbikedashcam]

You forgot to mention the parking situation. If you want to have a car in Japan you need a certificate of parking space. And given how good public transport and how easy to walk and ride bicycle in Japan, car ownership reduced. You don't need much space when you don't have so much cars in a city. Having said that they do have parking minimum requirement but it's very low, 1 space per 200 m2.

[shibapatrol]

I'm a Japanese national who has lived in the UK for two decades and recently moved back to Japan because of the housing issue. UK has gotten too expensive and I could not see myself investing so much time, energy and money at a time when UK seems like it's on a downward spiral. I've been back in Japan for two years and already by quality of life is much better. My salary when converted to British pounds is not as high as it was in England but that's it. Here in Japan I live in a condominium 3min walk from a major underground metro loop line in a large city. My place here is bigger, cleaner, more convenient; and importantly, cheaper than it was back in England even when I'm paying for two car park spaces. It really boggles my mind.
It all comes down to money. If you want big salaries, Japan is not the place to be. What Japan gives you is stability and peace of mind, and that is something that has been severely lacking in many countries around the world.

[silentwf]

"Relationship with property" I think that is the root of everything. In countries where real estate is considered part of wealth, the politicians dare not touch the values of their voters properties. And this therefore stops or hinders any policies that would lower the rate of growth.

[Aozora]

Quick nitpick, we don't pay a 50% tax on inheritance. The first 30 million yen (～220k USD) for the estate}+6 million per inheritor is tax free. Then it's a progressive tax depending on the remaining value of the inheritance. From 10% for 10 million yen to 55% on 600 million yen. Given the tax assessment is much lower than the market value generally, it's not uncommon to get it tax free or a fairly low tax for it.

[jasonfuerstenberg]

There is one thing this video left out. In Japan, there are sun exposure laws guaranteeing that a giant tower can't be put directly south of, say, a detached house if it were to cast a giant shadow on said house for most of the day. This is why the roof shape of many buildings is angular and not flat.

If anything, this is an example of where Japan is actually stricter than the west

[MargaretWest-mu]

A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won’t alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.

[CameronFussner]

The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people—at least in California, where I currently reside—are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!

[rolandaustria]

I have a friend who moved to Japan from New York. He now works part-time here and he's my neighbor actually. He bought a house here ya'll. Like with his part-time salary ($20k yearly) and got a 4-bedroom house with a garage on a hill overlooking our city. Wife and I currently are just renting though. $350 monthly for a 440sqft bright airy apartment by the river, a couple minutes walk from everything we need. We are actually just half an hour from Shibuya and Shinjuku. There is no crisis here or whatever. Our groceries are just $50 a week! Healthy yummy food too.

[ottopartz]

Another thing that struck me about Tokyo from my too brief visit is that you can walk ten minutes from anywhere and find anything you need for daily living including some sort of public transit. And with the low ownership of cars and having what you need in the local areas, people seemed to know each other better because they were out of the house walking and seeing each other.

[Hawtload]

when I lived in a small town in Japan, half of the homes I stayed in were on the 2nd floor of a business.
Imagine a city where everything at street level is a store/park/etc, and essentially everything on the 2nd floors are houses and apartments.
You could walk downstairs to go to work, and across the street to get groceries.

[ulterior_web]

Another thing you missed, housing sizes are much smaller than almost anywhere and the lifestyle is oriented towards spending more time outside. Most people don’t really host guests, you meet friends outside, etc. Not something you’ll see much in the literature but living here it’s definitely true, and it’s no surprise that everywhere seems so bustling.

[ZiKoN]

I also think a huge reason that you didn't mention is cars. The vast majority of people living in Tokyo don't own a car. They really don't need one. Tokyo has probably the greatest public transit system in the entire world that millions of people use everyday. it's reliable and always on time. And if they want to go somewhere else, the bullet train goes pretty much everywhere and if it doesn't, a local train can get you there. This greatly cuts down on your monthly costs. You don't have to buy gas or insurance for your car or maintanence.

[Wyrdwad]

Surprised to hear Tokyo's green spaces are so low compared to other major cities, as I'm a Tokyo resident myself, and it seriously feels like there are parks every other block, and lots of streets separated from the sidewalks by rows of trees -- which makes for a much more pleasant walking experience! I suppose once you get a bit more center-city, though, it's all concrete and stone, with little nature to be gleaned from your immediate surroundings -- but even in Shinjuku and Shibuya, you're never all that far from a fairly sizable park or two, if you know where to look.

Definitely can confirm that there's no housing crisis here as far as I can tell, though -- my apartment is right off of a major shopping street in Kichijoji (kind of the hipster capital of Tokyo, and a significant tourist destination for a lot of locals and foreigners in the know), only about a 10 minute walk from the train station, and my rent here is 90, 000 yen/mo -- which currently equates to about $600/mo U.S. It's a small apartment, but well-maintained and comfortable, with a great city view, and readily accessible to SO MUCH -- despite its size, I'd say it's my favorite place I've ever lived, hands down. And the best part is, I've lived here for 4 years, and my rent hasn't gone up even once! And as far as I understand it, as long as the landlord continues to approve my lease renewal (which occurs every 2 years), it WON'T go up, as price-fixing on rent is pretty standard practice in Japan. As long as I continue to live here, I should continue paying the same rent each month as when I first signed the lease -- it's only if and when I move out and someone else leases this apartment anew that the rent price will most likely be raised.

[GhanYt]

Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth

[namedrop]

It’s like you almost got it

It’s not that Japan builds more housing; it’s that there’s no incentive for rich people to buy up many properties and hoard them like a dragon

Which is the problem in the US at least

[lucypaisley]

In 2018/2019, I left my management consulting job in Mumbai and relocated to Sydney, Australia, with my husband, who had already secured a position in the tech sector there. Housing costs have become exorbitant, groceries are becoming more expensive, and rent prices are on the rise, causing me to reconsider my decision four years later. What can I do differently at this point? Making ends meet has proven to be quite challenging.

[nicolasbenson]

Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.

[StarchildMagic]

I live in a midsize city in the Pacific Northwest of the US, one block off of a main traffic thoroughfare. A few months ago, I got a flier in the mail with a "dire warning." The city was changing the zoning along the main road. Instead of a 2-story building limit, they were raising it to a 6-story limit. When I looked into it, the idea is to create multi-purpose spaces - retail, office, and homes in the same buildings. I can imagine how much wailing and gnashing of teeth there was at the community meeting, but I LOVE the idea. Being able to walk out your front door and down the stairs to get groceries, do some shopping, or catch a bus anywhere in the city...we need more efficient and human-scale places like this!

[Ghost_]

Another thing to consider is their historical and cultural approach to housing. Japan is actually used to small spaces, so much so that they have a lot of ingenious ways to make a small space have all the necessities needed without compromising much - a well thought of move that if compared to western cities alone, aren't really good at executing.

[StardustMonkey]

You forgot the biggest elephant in the room! Near 0% interest Government Loans! My friend in Tokyo built a house and it cost him $800k USD! But the 50 year mortgage with 0.18% interest from the government (instead of a commercial bank in a high rise) makes his monthly payment $1, 800 for that new home!!!! Most countries are slaves to finance and your high mortgage and the rents of landlord is directly attributable to private banking. Imagine if local governments have landlords 0% interest loans but then could control profit margins for rent. Meaning my duplex at 0% now costs me $1, 500 a month and I create a report on my yearly expenses repairs and taxes and it turns out I now only pay $2, 000 in total management and ownership expenses then I would be allowed a 30% markup. So I could charge 2600 total split across both tenants or $1, 300 dollars each unit. In this example so was estimating the cost to build a 3 bedroom duplex in California. So if someone had an investment portfolio of 20 duplexes they couple make $150k a year and everyone is charged $1300 for a 3 bedroom duplex. The efficiencies could get much better with 4plex and above but in a small lot with current regulations this would be possible with expensive construction costs here but just getting rid of private banks