Japan's housing market: nearly free homes nobody wants to buy

Japanese houses for next to nothing: the myth of the asset that always rises

In Japan, a house on a mountainside costs less than a mid-range car. It's not a joke or a limited-time offer: it's the result of decades of a property culture that treats housing as a consumer good that depreciates, not as an asset that gains value. While in Spain the official narrative insists that "property always goes up", the Japanese archipelago has more than 9 million empty homes (akiya) selling for absurdly low prices. The uncomfortable question is whether Spain could end up in a similar situation.

The main reason is demographic: Japan has spent decades with rock-bottom birth rates and a highly restrictive immigration policy. With no new demand, houses pile up. On top of that, Japanese homes, often built with lightweight materials, lose value quickly after purchase, unlike in Western markets. In rural areas, and especially near Fukushima, prices have fallen to demolition levels.

The contrast with the Spanish mindset is stark. While in Spain buying a home is assumed to be the best store of value, in Japan it is a liability that depreciates like a car. Some analysts point out that taxes and strict seismic standards make maintenance expensive, discouraging purchases. But the truly striking figure is another one: despite 9 million homes being practically given away, many still find no buyer. The market shows no sign of bottoming out.