One of the problems brought about by Japan's aging population is the ”vacant houses”.
Ten years ago, in 2013, a national survey indicated that the vacancy rate was one out of every seven housing units in Japan.
However, private-sector data predicts that by 2033, one out of every three housing units in Japan will be vacant. Based on national data on vacancy rates over the past 30 years, it is predicted that at least one in four housing units will be vacant at this rate.
１．Current status of vacant houses in Japan
According to survey data released by the Japanese government, as of 2023, the number of vacant houses in Japan reached a record high of 9,002,000, and the vacancy rate was also at a record high of 13.8%. The number of vacant houses has been consistently increasing, doubling in the 30 years from 1993 to 2023.
２．Japan's two major vacant house problems
① The number of vacant houses will increase rapidly in an aging society
As mentioned at the beginning of this article, according to a 2013 survey by the Ministry of Internal Affairs and Communications, there are approximately 8.2 million vacant housing units nationwide, or one in every seven housing units is vacant. Private-sector projections indicate that by around 2033, the number of vacant houses will reach 21.5 million, or one out of every three housing units.
②Challenges with the management and utilization of vacant houses
There are cases where the parents own the property or the ownership has been transferred to their children, but there is a problem of not being able to manage and utilize the vacant house. The problem is based on the inability to make decisions about what to do with the vacant house, and the problem of maintaining or leaving it as it is, the problem of demolition costs, and the problem of manpower to take action.
There is also the problem of not knowing how to take concrete action or not having anyone who can take action.
The top “reasons for leaving the house vacant” are using it for storage, demolition cost issues, and the possibility that someone in the family might use it in the future. Emotional reasons include the fact that the house is filled with memories of family time spent together.
３．National government and private companies tackling issues
We looked into what measures the government is currently putting together and whether there are any startups or companies that are working to solve the issues.
① Legal and National Measures
In 2023, the Act on Special Measures against Vacant Houses was revised to further strengthen the law on vacant houses.
Establishment of “unmanaged vacant house”
「Unmanaged vacant house」→ Government encourages guidance and management
↓
「Specified vacant house」（Vacant houses that are not being acted upon.）
→ Government can forcibly remove the property (in case of emergency such as disaster hazard, etc., and the removal cost is charged to the owner)
※Disadvantage for vacant house holders = If a house becomes a “ unmanaged vacant house,” it will no longer be eligible for property tax and other tax reduction measures on the site.
Establishment of a new system of support corporations for management and utilization of vacant houses
NPOs and incorporated associations that are actively engaged in the utilization and management of vacant houses can now be designated as “vacant house management and utilization support corporations”. Designated corporations will provide consultation to owners on how to utilize and manage vacant houses, and match owners with those who are interested in utilizing vacant houses, thereby promoting the utilization of vacant houses.
How many corporations have been designated as “vacant house management and utilization support corporations” in Japan?
As of June 14, 2024, 16 cities, towns, and 23 corporations have been designated as “vacant house management and utilization support corporations”.
It is expected that the revision of the law will lead to an increase in the number of “vacant house management and utilization support corporations. However, there are limits to what the government can do.
Therefore, the key is for the private sector to take the initiative in solving this problem.
How many companies are there in Japan to work on this issue?
② Private company working to solve the “vacant house” problem
The frontrunner, perhaps, is Takamitsu Wada, CEO of AKIYA KATSUYO Co., Ltd. (headquartered in Tokyo). https://aki-katsu.co.jp
The company is engaged in comprehensive production, including the dissemination of information related to the utilization of vacant houses and land throughout Japan (for people who want to sell or buy, mediation, consultation services such as “cleaning up” and “inheritance,” surveys, and making proposals) In further research, we found that there are still less than 10 companies in Japan that are actively engaged in working on the “vacant house issues. In the process, we found a company in Fukuoka that was tackling this issue and requested an interview.
“smart inn” CEO Shun Matsuki https://biz.smart-inn.co.jp/home
I had the opportunity to see the CEO give a presentation in English at “Light Talks Demo Days hosted by Manabu Hubs x Taiwan,” an event held in Fukuoka City in October with the participation of about 10 startups from Silicon Valley in Taiwan.
The company won the English pitch at the GLOBAL INNOVATORS DAY (held in Fukuoka City, Japan) in March 2024.
The company produces empty houses into smart hotels.
They also offer a smart check-in service called “smart inn” and have a partnership with Airbnb.
With an increasing number of foreigners yearning for “Japanese-style houses” and desiring to purchase a Japanese home, the company has been receiving inquiries.
With the expected growth of Japan's tourism industry and private accommodation services in the future, demand for this service is expected to grow.
A video interview with smart inn ‘s CEO Shun Matsuki will be linked here as soon as it is released.
Subscribe to our YouTube channel and set an alarm here.
Article by Juri Yoshino, producer of STARTUPPERS
STARTUPPERS All Rights Reserved.
Comments