I may misunderstand it but Japan has two important differences: Firstly, a significant number of houses are one family lifetime. People clearfell and rebuild r

I may misunderstand it but Japan has two important differences: Firstly, a significant number of houses are one family lifetime. People clearfell and rebuild routinely. The marginal value of a home is different when it's lifetime is constrained. Not all houses by any stretch, but its far more common. Secondly Japan's population is shrinking. It's further along a pathway the developed economies share absent immigration. Thus, there is far more housing stock to head of population. There is a third reason and it is perhaps more relevant: Japan's zoning laws are bizarre. You can put a house up next to a tire recycling plant, and have a Zen temple across the road and a sofa factory operating out of your front verandah. Nobody seems to care. California take note.