Akiya houses: Why Japan has nine million empty homes

As Japan's population continues to decline, its society and economy are facing significant impacts, with the number of vacant houses surpassing nine million. This number is sufficient to house the entire population of Australia if three people were to live in each dwelling.

Government data released on Tuesday indicates that the number of empty houses, known as "akiya," as of October 2023, had increased by over half a million since the previous survey in 2018, reports The Guardian.

The primary causes of this issue are rural depopulation and the reluctance or inability of many heirs to these properties to live in, renovate, or demolish them. Urban areas are also affected, with hundreds of thousands of long-term vacant houses.

The total of vacant homes represents nearly 14% of all houses in Japan, though the actual number may be higher. The Nomura Research Institute estimates that there are nearly 11 million akiya, potentially accounting for over 30% of houses within a decade.

Of the properties surveyed, more than 4.4 million are available for rent but have remained empty long-term, mostly located away from major population centres. The status of over 3.8 million properties is unknown, and only 330,000 of the nine million vacant houses are currently up for sale.

Vacant land in Japan incurs higher taxes than land with buildings, which adds to the financial burden of demolishing old houses and dissuades some people from inheriting these properties.

However, there is a growing interest among foreigners in these surplus properties, especially in traditional kominka houses, as an option for inexpensive and unique accommodation, holiday homes, or rental properties for tourists.

Hana Sakata and her husband have spent nearly a decade renovating and renting out houses through their New Heritage venture. Their journey began with a holiday home on the Izu peninsula, which had been vacant and fallen into disrepair.

Subsequently, they acquired a traditional kominka house in a mountainous village in Nagano, where part of the structure had collapsed under uncleared snow while its elderly owner was in a care facility.

However, Sakata warns that the cost of restoring such properties is immense, especially highlighting the challenges of the kominka project.

"There is a lot of hype now, particularly among foreigners, about these gigantic farmhouses in Japan being available very cheaply or free. But it's a huge commitment and there aren't many contractors that can fix them up – the traditional carpentry skills are dying out," she said. "In 10 years we could see a lot of foreign-owned akiya."

Nonetheless, there is considerable interest among foreign tourists in experiencing traditional Japanese accommodation, with demand currently surpassing supply, according to Sakata.

The recent multi-decade lows of the yen against major currencies have contributed to a tourism boom, with a record 3 million overseas visitors in March.

Japan is not the only country facing demographic challenges. In neighbouring South Korea, the birthrate per woman dropped to a record low of 0.72 last year, even lower than Japan's 1.26 figure in 2022.

Similarly, both Singapore and Taiwan have fertility rates below one child per woman, while the United States is experiencing its lowest fertility rates in a century.