On July 31st, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released updated nationwide housing starts statistics for June 2024.
The number of new nationwide housing starts in June was 66,285 units, a 6.7% decrease compared to the same month last year, marking the second consecutive month of year-on-year (YoY)decline.
By property category, custom-built single-family home (SFH) housing starts totaled 19,181 units, a 5.6% year-on-year decrease, continuing a 31-month straight downward trend.
Rental housing starts were 28,233 units, a 6.2% decrease, marking the second consecutive month of decline.
Strata-title housing starts came in at 18,361 units, an 8.6% decrease, also falling for the second month in a row.
Within this category, strata-title condominium starts were 8,241 units, a 2.1% decrease, the first decline in three months, while strata-title (or subdivided) SFH housing starts were 10,017 units, a 13.8% decrease, continuing a 20-month downward trend.
The Significance of Housing Starts
Housing starts refer to the beginning phase of construction for new residential properties.
This phase represents a substantial capital investment and is a crucial driver of consumer spending on items such as household appliances and furnishings.
The health of the housing sector greatly impacts employment rates and the prices of commodities like lumber and copper.
Moreover, housing starts reflect builders' confidence in the market, as their willingness to allocate resources to new projects hinges on their perception of housing demand.
Consequently, the trend in housing starts can offer insights into market risk appetite and consumer sentiment.
Sources:
R.E. Port News (Japanese only)
Ministry of Land, Infrastructure, Transport and Tourism (Japanese Only)
