If Tokyo can figure it out so can we. Affordable housing is a huge problem for a large percentage of the U.S. population. It inhibits economic growth and lowers quality of life. Let’s consider the consequences of our regulatory policies in addition to our good intentions.
Affordable housing is definitely one of the biggest problems we face today in the US
Not so sure that you can compare Tokyo to the united states. I have been Tokyo entirely different system and culture
There is no immigration and declining population in Japan that is the difference.
Lets note that Japans population is falling. Flip to a different article and hear economists bemoaning their "demographic crisis". Truth of the matter is, population growth makes the economy grow, but it also puts upward pressure on scarce commodities. The scarcest of all those is land..they are not making any more of it! So sure, you can build up, on the small percentage of land dedicated to multi-family housing, and if you wait years or decades, you'll see those units come on-line.?
I've been thinking about this for some time now and I cannot escape the conclusion that where there is too much regulation with something -- it is insulated from market fluctuations. When that happens you get the same deal with government healthcare and any other public institution; which is, the prices rise, and RISE some more.
Housing is a depreciating asset in Japan. The shotty materials and the never-ending?modifications to the building codes make it so the structure needs to be torn down or renovated after so many years.? Price is essentially for the land.?
Yeah, as others have noted: low urban population growth, a stagnant economy for 2 decades, and several years of deflation make Japan a unique case. In addition, the values of homes decline in Japan as they age so, to compensate,?housing materials are cheaply made and the quality of many cheap apartments and houses is very low in comparison to elsewhere. The sizes of homes are also extremely small.?