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Important to note that, unlike in many other countries, housing in Japan is a depreciating asset, like a car. Their value goes to zero over time. This is somewh

Important to note that, unlike in many other countries, housing in Japan is a depreciating asset, like a car. Their value goes to zero over time. This is somewhat contrary to what many of us are accustomed to, where houses are appreciating (or at least stable) assets which maintain or grow in value.

highwaylights 4y ago
When you say “goes to zero”, does this mean they really trend to zero or a way of saying that declining population means the demand keeps decreasing? I’m trying to figure out if it’s a population thing or a short-lived construction thing.
- lapetitejort 4y ago
  Short-lived construction. The average lifespan of a house in Japan is 20-30 years [0]. Honestly, I like the approach. I'm living in a 100+ year old house. It costs a fortune to heat and cool. Any renovation brings the risk of toxic substances released into the air. But it's got lots of character, right? I guess so, but it's overrated. I dream of living in a new house with good insulation and easy to access electrical conduits. [0]: https://en.wikipedia.org/wiki/Housing_in_Japan https://en.wikipedia.org/wiki/Housing_in_Japan
  - fomine3 4y ago
    > The average lifespan of a house in Japan is 20-30 years [0] This is a myth that I've seen many times. It's true for taxable value, but people just live there longer, like 30-50 years. House quality is improving since 80s (in -80s, they built crappy houses massively after houses were gone by the war) so lifespan will be expanded in the future. You can find older houses by using Google street view at random street. https://www.google.com/maps/@38.0624007,139.9893573,3a,75y,184.28h,91.01t/data=!3m6!1e1!3m4!1sJYyfLUGm3lx6OAIplgFO-A!2e0!7i13312!8i6656 https://www.google.com/maps/@38.0624007,139.9893573,3a,75y,1...
jutrewag 4y ago
This doesn’t make any sense to me. Why wouldn’t a really poor family buy it when it’s really close to zero then, especially if it’s a perfectly habitable house.
- maxerickson 4y ago
  It's likely not perfectly habitable as the price heads to zero.
  - jutrewag 4y ago
    If it’s a depreciating asset there’s a good chance it’s maintained while the price is dropping. How bad could it get as long as it’s not abandoned? The whole thing is built on a cultural premise where people don’t want to live in houses that have been lived in. It’s fickle and it’s amazing to me that it has persisted for so long.
    - midoridensha 4y ago
      People buy used houses all the time, at least in major cities. They just properly recognize that the value of the house goes to zero after ~40 years, but the land it's on retains (or even gains) value. Honestly, I don't see how this is that much different than America: in the richest cities there, people frequently buy up some shitty old 1950s house on valuable land, tear down the house, and build a bigger and nicer one. Of course, a bunch of the elderly neighbors whine and complain about how the shitty old 50s house had "character"...
- sn9 4y ago
  Because the land still has value so it's cheaper to just build a new house on the land.
- deleted 4y ago
  [deleted]

highwaylights 4y ago

When you say “goes to zero”, does this mean they really trend to zero or a way of saying that declining population means the demand keeps decreasing? I’m trying to figure out if it’s a population thing or a short-lived construction thing.

lapetitejort 4y ago
Short-lived construction. The average lifespan of a house in Japan is 20-30 years [0]. Honestly, I like the approach. I'm living in a 100+ year old house. It costs a fortune to heat and cool. Any renovation brings the risk of toxic substances released into the air. But it's got lots of character, right? I guess so, but it's overrated. I dream of living in a new house with good insulation and easy to access electrical conduits. [0]: https://en.wikipedia.org/wiki/Housing_in_Japan https://en.wikipedia.org/wiki/Housing_in_Japan
- fomine3 4y ago
  > The average lifespan of a house in Japan is 20-30 years [0] This is a myth that I've seen many times. It's true for taxable value, but people just live there longer, like 30-50 years. House quality is improving since 80s (in -80s, they built crappy houses massively after houses were gone by the war) so lifespan will be expanded in the future. You can find older houses by using Google street view at random street. https://www.google.com/maps/@38.0624007,139.9893573,3a,75y,184.28h,91.01t/data=!3m6!1e1!3m4!1sJYyfLUGm3lx6OAIplgFO-A!2e0!7i13312!8i6656 https://www.google.com/maps/@38.0624007,139.9893573,3a,75y,1...

jutrewag 4y ago

This doesn’t make any sense to me. Why wouldn’t a really poor family buy it when it’s really close to zero then, especially if it’s a perfectly habitable house.

maxerickson 4y ago
It's likely not perfectly habitable as the price heads to zero.
- jutrewag 4y ago
  If it’s a depreciating asset there’s a good chance it’s maintained while the price is dropping. How bad could it get as long as it’s not abandoned? The whole thing is built on a cultural premise where people don’t want to live in houses that have been lived in. It’s fickle and it’s amazing to me that it has persisted for so long.
  - midoridensha 4y ago
    People buy used houses all the time, at least in major cities. They just properly recognize that the value of the house goes to zero after ~40 years, but the land it's on retains (or even gains) value. Honestly, I don't see how this is that much different than America: in the richest cities there, people frequently buy up some shitty old 1950s house on valuable land, tear down the house, and build a bigger and nicer one. Of course, a bunch of the elderly neighbors whine and complain about how the shitty old 50s house had "character"...
sn9 4y ago
Because the land still has value so it's cheaper to just build a new house on the land.
deleted 4y ago
[deleted]