A Deep Dive into Japan's Abandoned Houses

Heard about Japan’s abandoned houses?

If not, then this article is for you.

Here, we’ll take a deeper look at this phenomenon.

Why does Japan have abandoned houses?

Before diving into this topic, let’s examine why and how Japanese abandoned houses are occurring. The akiya house issue has multiple factors that build on each other.

1. An aging population and low birth rate

Japan’s aging population and low birth rates have led to an increasing number of vacant houses. The BBC reported that one in 10 people in Japan is now 80 or older. That means there’s a need for more young Japanese workers to support the aging population.

However, Japan’s low birth rate adds another layer to this issue as fewer families have children.

The declining population has resulted in many houses, especially in rural Japan, being abandoned.

2. Inheritance issues

The aging population and low birth rate contribute to the inheritance problem. With few children receiving any inheritance, such as houses, many properties are unoccupied and unmaintained, leading to deterioration.

3. Property taxes

Inheriting any property in Japan will result in paying the related property taxes, which is an additional financial strain.

Many want to avoid paying additional taxes, leading these properties to be abandoned and unmaintained.

4. Demolition costs

So, why don’t you destroy and rebuild a house on the abandoned property? Well, easier said than done.

The demolition cost for an empty house is another financial barrier, depending on the property's size and structure.

For example, it can cost between $3000 to $6000 to demolish a 100-square-meter house.

5. Preference for new homes

Japan’s Ministry of Land, Infrastructure, Transport, and Tourism reported that 980,000 new homes were built in 2019, compared to only 170,000 sold homes.

There is a clear and strong preference for constructing new homes rather than purchasing or renovating existing homes, furthering the issue of abandoned houses in Japan.

What are the solutions for abandoned houses?

Both national and local Japanese governments are working to address their abandoned house issues, mainly through grants and subsidies.

1. Relocation and housing support

While the amount of support varies depending on the government, various organizations can help with moving costs, employment opportunities, or training to help newcomers integrate into their new communities.

2. Grants and subsidies

Many local governments will offer grants and subsidies to help with vacant home renovations and utility setup.

Additionally, some local governments give grants for a few months while establishing yourself in the new place.

3. Akiya banks

Akiya banks are online databases that help interested parties find abandoned and free homes the local government operates. These platforms help match buyers with sellers.

There are akiya banks available all over Japan.

The 3 types of abandon houses in Japan

1. Kominka houses

Also known as minka houses, these are stand-alone and larger residential houses in the Japanese countryside or rural areas.

Kominka houses are traditional old wooden houses built in a traditional style and natural materials from 100 years ago.

Due to how far and rural these houses are, kominika is a great option for a larger house next to nature.

2. Machiya houses

Machiya houses are similar to kominka houses. However, machiya houses are mostly in old traditional towns in Japan and are somewhat equivalent to townhouses.

3. Akiya houses

Akiya is a broad term that means vacant or abandoned houses, mainly associated with rural areas of Japan.

While the type and condition of these houses will vary, they are sold at a low cost and are often free of charge. However, akiya will often require money to repair and maintain.

Are there abandoned houses for rent?

Renting abandoned houses in Japan is possible. While most akiya houses are for sale, you can find akiya properties to rent in akiya banks. Or tell the real estate agent you are working with that you are looking to rent instead of purchasing.

Can a foreigner buy akiya?

Anyone can buy an akiya in Japan. The only barrier would be your finances to purchase an akiya house.

Before purchasing one, check the terms and conditions, as some might require you to rent for the first year before the ownership is transferred to you.

Look at any images (画像) and extra information (情報) so you know everything you can about any property.

Do abandoned homes require renovations?

While many of these abandoned homes are cheap, they are not ready for occupancy. They will require cleanup and renovations.

Depending on the prefecture, some local governments provide up to ¥100,000,000 to help renovate the house. But the requirements depend on the prefecture.

How can I buy an akiya in Japan?

Here are the general steps to buy an akiya house in Japan.

1. Inquiry

Use an akiya bank to contact the particular akiya you are interested in. This step usually involves filling out a simple application where you will write your name, email, phone number, and estimated move-in date.

Then, the respective real estate will connect with you.

2. Property viewing

After you connect with the real estate agent, they’ll see if you have other properties in mind. If they are close to each other, the agent will arrange transportation for you to see them.

Viewing the properties may take the whole day, and it is best to have a Japanese speaker with you.

If you live overseas, you can view the property via video call. Again, having a Japanese speaker with you is best for better communication.

3. Purchase application

After viewing the properties, it’s time to apply. You may have to submit a “Letter of Intent (LOI),” a nonbinding letter expressing your interest in purchasing. It outlines the terms and conditions, such as the expected property price and payment procedure.

Usually, the real estate agent will help with this letter and submit it for you.

Please note that the seller can negotiate to reach an agreement and has the right to decline your application.

4. Contract signing

Once an agreement is reached, the agent will prepare all the documents for you. It will be in Japanese for you to review with any additional fees. The agent will also explain the terms and conditions of the contract.

You may have to pay an initial deposit and the agent’s commission fee.

If you live overseas, you might need someone to sign the contract on your behalf, like a proxy (代理人, dairinin).

5. Closing

You will pay the remaining amount 2-3 weeks after the contract signing. Depending on the contract, you will pay in full or monthly, like a mortgage.

After confirming the payment method and reviewing the documents, the property is transferred to you with the keys.

You should be present with your proxy at the final closing. After the meeting, you will need to register the title transfer at the local Legal Affairs Bureau.

In closing

Japan's abandoned houses are a complex phenomenon layered in many issues. While these empty properties contribute to social and economic restraints, they offer unique opportunities with affordable housing solutions and a rural lifestyle.

Transitioning into rural living is possible with financial support, grants, and subsidies.