Transcription
Japan just lost 3 million people in 5 years, the biggest drop ever recorded. So, buying a house here sounds insane, right? But, stay with me because the real story is the opposite of what you think.
The numbers are brutal. Last year, Japan had the fewest babies since records began in 1899. The birth rate fell to 1.14. To just keep the population flat, you need 2.07. We're nowhere close. And this is happening 15 years faster than the government predicted. And it is not just the countryside. Yokohama, a city of 3 and 1/2 million, just shrank for the first time since World War II. Even parts of central Tokyo, like Shibuya, are losing people. One expert says Japan will now lose about 1 million people every single year.
So, here's the fear. Why buy a home in a country that's emptying out? Fewer people means less demand. Less demand means your house could be worth nothing in 30 years. That is a real argument. And if you buy blind, that is exactly what happens to you.
But, look closer. Japan is not shrinking evenly. Most towns shrank, but 161 towns actually grew. And guess who's driving a lot of that growth? Foreigners. One ski village in Hokkaido is now more than 20% foreign. Towns near new train lines, data centers, and new chip factories in Kumamoto are booming.
Now, here's something personal. I live in Yokohama, the city you just heard shrinking. And I keep buying property here anyway. Why? Because the headlines lie to you. Yokohama only shrank because older residents are passing away. More people actually moved here than left. Think about that. People still want to live here. It is right next to Tokyo, and it is way cheaper. So, when families get crushed by Tokyo rent, this is where they come. That is the whole game. You're not just buying Japan, you're buying one house in one specific town. Rent for a normal family apartment in central Tokyo is now over $2,000 a month. That money has to go somewhere. It flows out to cheaper cities and regions, the exact places with empty homes.
So, a shrinking country is not a reason to run. It is a reason to be precise. Pick the wrong town and you lose money. Pick a growing one and you win big while everyone else is too scared to move. Still interested in buying a home in Japan? Be sure to check out Akiya Hub.