The inflation is mostly because of the devaluation of the yen compared to the USD, mostly because the BOJ refuses to raise interest rates. There is some real e

The inflation is mostly because of the devaluation of the yen compared to the USD, mostly because the BOJ refuses to raise interest rates. There is some real estate inflation in very desirable parts of the biggest cities because of foreign investment, but I'd say it's limited. There's still lots of new construction going on, though it's slowing due to labor shortages. The foreign investment can only go so far: real estate isn't a great investment here because structures depreciate rapidly, and it's relatively easy to build new housing just about anywhere if you own the land.