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One important difference to note in your Japan comparison is that Japan is experiencing population decline, which would explain weak demand and decreasing price
by alex_anglin 6y ago
One important difference to note in your Japan comparison is that Japan is experiencing population decline, which would explain weak demand and decreasing prices. Home ownership as an investment in North America has been driven by demand exceeding supply, among other factors, which make a difference from an investment perspective.
- corey_moncure 6y agoThis is incorrect. Many of the factors that make the Japan real estate market what it is are codified into law. Furthermore the qualities attested to by the grandparent post are invariant with the current demographic trends, and have existed for a very long time. Long story short, Japan real estate is weird and unique, not a good subject for off the cuff generalizations.
- alex_anglin 6y agoI would agree with you that real estate is inherently local, with a myriad factors to consider. I would also agree with you about the limitations of generalizations. However, in a conversation about the price of housing, discussing supply and demand seems like a good place to start.
- digianarchist 6y agoJapans housing regulations are also made at the national level rather than the local level which reduces Nimbyism.