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According to a survey conducted by the Statistics Bureau of Japan in 2018, the number of abandoned houses reached a record high of 8,489,000, accounting for 13.6% of all dwellings in the country. Which means, the total number of empty houses exceeds the total number of households. In the survey, Yamanashi prefecture recorded the lowest rate of occupancy, with 21.3% of houses standing empty.
One of the reasons is because of the strong preference in Japan for new homes over old ones, but the most part is Japan's declining population. Moreover, since the life expectancy has increased in the country, more and more people move to live in nursing homes, which resulted in accelerating the number of vacant houses. Even when a home is inherited by younger family members, they often relinquish management of it due to complex tax codes.
Abandoned houses are, of course, poorly maintained, and so are vulnerable to weather-related events and natural disasters. Japan is one of the most earthquake-prone countries in the world, and houses more prone to collapse may cause further collateral damage. In addition to the environmental risks, damage to the landscape and the subsequent lowering of property values is of great concern to people living in the area.
‘Akiya Bank’ is a local government-led service where people who want to rent or sell a vacant house they own can register it with the municipality, which provides information via its platform. As a non-profit service there are no brokerage fees, however buyers have to negotiate directly with the owner of the vacant house, which can be time-consuming and inconvenient - especially when the owners are old and do not use the internet.
Additionally, the Japanese government enforced ‘The Vacant Houses Special Measures Act’ in 2015. The law applies specifically to vacant houses which are heavily damaged or pose a significant danger to safety.
Akiya-Katsuyō was founded in 2014 in Osaka. The company offers the SaaS platform ‘AKIDAS’ which is a data system that connects real estate companies with owners of vacant homes. This platform makes it easier for real estate companies to find their prospective clients. The startup is also collaborating with local governments, providing data to local Akiya Banks.
The startup also provides the media platform ‘Aki-katsu Magazine’ which specializes in vacant house information. The content covers various information (property tax, reforms, latest events etc.) for not only real estates companies but people who are interested in buying abandoned houses.
Launched in 2018, ADDress is a startup based in Tokyo. ADDress provides subscription services for renting abandoned houses for 44,000 yen per month including bills and WiFi. It offers more than 120 houses to stay in Japan, with each house having an owner referred to as a “Yamori (家守)”. Yamori support the users in moving in, and sometimes offer local activities such as farming, fishing, and handicrafts. The purpose for using the service is varied: workations (work + vacation), sightseeing, and city dwellers trying out more rural living. The number of customers increased elevenfold between 2020 and 2022 due to an increase in remote workers after the COVID19 pandemic.
Renoveru was founded in 2010. It provides one-stop support for the entire process of finding and renovating a second-hand condominium, from the property search to mortgage, renovation design, construction, and interior design. They also provide business partners with technology to optimize renovation and help companies involved in renovation to digitalize their operations, making effective use of Japan’s existing housing stock.
In 2021, the company conducted research with the Kanazawa Institute of Technology to assess the effect of renovations on reducing CO2 emissions and waste. The results shows that renovation reduces CO2 emissions by up to 76% and waste generation by up to 96% compared to rebuilding and new construction (PDF).
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