The government plans to create a financial framework to provide loans to businesses that turn vacant houses into affordable homes for young families and low- and middle-income households. The move comes as the number of akiya, or empty dwellings in the nation, continues to rise. The Land, Infrastructure, Transport and Tourism Ministry — which included the plan in its budget request for fiscal 2027 beginning next April — said a lack of funding opportunities for developers was a major roadblock for them renovating vacant homes.
The plan calls for the government-affiliated Japan Housing Finance Agency (JHF) to work with local governments and developers to help finance the renovation of vacant houses that are in relatively good condition. The funding plan is part of the ministry’s long-term goal to turn the increasing number of akiya in the nation into affordable housing for young people and child-rearing families, particularly in urban areas, and to help prevent existing houses from deteriorating or being abandoned. The ministry hopes to limit the number of dilapidated and damaged vacant houses with no plans to be used to around 1 million by 2035, although this would still be an increase from the 900,000 recorded in 2023, the latest year with available figures.
Funding to support the program will come out of a ¥2.1 billion ($13.7 million) budget request that is earmarked for the JHF in the next fiscal year. In 2023, there were 3.86 million abandoned or vacant dwellings that were not for rent, sale, or in use as a secondary home, which made up 5.9% of the total of existing houses in the country. That number is about 370,000 higher than in 2018 and up by over 1 million compared with 2008.
The trend is expected to continue in the future, as Japan’s population shrinks and buildings age. According to the Japan Research Institute, there will be nearly 6 million empty dwellings not on the market or in use by 2043, which would represent over 8% of all housing in Japan.
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