Japan’s housing starts continued to contract in January, with new starts falling for the ninth consecutive month, according to data released by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) on February 28.
Total new housing starts: 56,134 units (down 4.6% year-on-year)
Total floor area of new housing: 4.273 million square meters (down 4.9% YoY)
January 2025 Housing Starts by Property Type
Custom-built single-family homes: 13,525 units (down 8.6% YoY), declining for the first time in four months.
Rental housing: 24,387 units (down 1.2% YoY), continuing a slight downward trend.
Strata-title properties (including condominiums and sub-divided single-family homes): 17,899 units (down 6.0% YoY).
Condominiums: 9,051 units (up 0.3% YoY), marking a return to growth.
Single-family homes (SFH): 8,715 units (down 11.7% YoY), extending a record 27-month decline.
Regional Breakdown
Greater Tokyo Area: 21,984 units (down 5.7% YoY)
Custom-built homes: 2,993 units (down 14.8%)
Rental housing: 9,534 units (down 10.1%)
Strata-title properties: 9,358 units (up 2.4%)
Chubu (Greater Nagoya) Region: 6,981 units (down 4.7% YoY)
Custom-built homes: 2,334 units (down 5.2%)
Rental housing: 2,898 units (up 16.3%)
Strata-title properties: 1,710 units (down 27.6%)
Kinki (Greater Osaka) Region: 9,968 units (up 9.4% YoY)
Custom-built homes: 1,929 units (down 4.3%)
Rental housing: 5,516 units (up 32.3%)
Strata-title properties: 2,479 units (down 14.6%)
Why are Housing Starts Important?
The term "housing starts" refers to the beginning phase of constructing new residential properties.
As a major capital investment, launching new housing projects drives demand for household goods like appliances and furniture while also acting as a crucial economic indicator watched closely by financial market analysts.
The health of the housing sector plays a pivotal role in employment levels and impacts the prices of key materials such as lumber and copper.
Housing starts reflect builders' willingness to commit resources to new developments, a decision shaped by their outlook on housing demand.
Further Reading:
January 2025 Japan Nationwide Housing Starts Data (Japanese only)
Source:
R.E. Port News (Japanese only)
