Why Some Houses in Japan Are Surprisingly Cheap: The Akiya Phenomenon

While Japan’s major cities see rising property prices, a parallel reality exists across the country’s rural areas and smaller towns: millions of houses sitting empty, often selling for shockingly low prices—sometimes under $10,000. These properties, known as “akiya”, tell a story of demographic shift, cultural preferences, and economic forces that have created one of the world’s most unusual housing markets.

The Numbers Don’t Lie

Japan has approximately 8.5 million empty houses scattered across the country, representing roughly 13.6% of all housing stock. In rural areas, the percentage climbs even higher, with some villages seeing nearly one in three homes sitting vacant. These aren’t just properties temporarily between owners—many have been abandoned for years or even decades.

The Perfect Storm of Demographics

The root cause is Japan’s dramatic population shift. The country’s rural population has been hemorrhaging for decades as young people migrate to cities for work and education. Combined with Japan’s aging society and declining birth rate, entire communities are literally dying out. When elderly homeowners pass away, their children—often living in distant cities—inherit properties they neither want nor can practically maintain.

As of 2022, 92% of Japan’s population lives in urban areas, a massive concentration that has left rural regions struggling with depopulation. The result is a surplus of houses with no local buyers.

Cultural Attitudes Toward Housing

Perhaps more surprisingly, Japanese culture strongly favors new construction over existing homes. There’s an “overwhelming cultural preference for new builds” that treats houses more like cars than investments—depreciating assets that lose value over time rather than appreciating real estate.

Japanese property prices depreciate almost the moment you move into your new home, a stark contrast to most Western housing markets. This cultural norm means that even well-maintained older homes struggle to find buyers at attractive prices.

The Hidden Costs Reality

Before anyone gets too excited about $5,000 houses, there’s a crucial caveat: “The cheapest properties are that way for a reason,” whether due to undesirable locations or renovation costs that exceed the property’s value.

Many akiya require extensive repairs to be habitable. House renovations in Japan can sometimes cost the same as building new, particularly given the wooden construction common in older homes. Add in challenges like outdated electrical systems, earthquake retrofitting needs, and potential structural issues, and that bargain house can quickly become expensive.

Geographic Reality Check

The cheapest akiya are typically located in areas experiencing severe depopulation—places where basic services like hospitals, schools, and even grocery stores may be scarce or disappearing. Many akiya are in less-populated areas that young Japanese have abandoned for urban opportunities.

While this might appeal to remote workers or retirees seeking rural tranquility, it’s important to understand you’re buying into communities that may lack the infrastructure and amenities most people take for granted.

The Inheritance Tax Factor

Japan’s inheritance tax system also contributes to the akiya problem. High taxes on inherited property can make it financially difficult for heirs to keep family homes, especially when they’re already established elsewhere. For many, the simplest solution is to let the property sit empty rather than deal with the bureaucratic and financial complexities of sale or maintenance.

A Tale of Two Markets

The key to understanding Japanese housing is recognizing it’s really two distinct markets. Urban areas, particularly Tokyo, Osaka, and other major cities, have seen strong price growth with Tokyo home prices up 10.7% year-over-year. Meanwhile, rural akiya represent the other extreme—properties that can barely find buyers at any price.

The Bottom Line

Japan’s cheap houses aren’t cheap because the country has solved housing affordability—they’re cheap because they represent the byproduct of massive demographic and cultural shifts. For the right buyer with realistic expectations, adequate budgets for renovation, and a genuine desire for rural Japanese life, akiya can offer unique opportunities.

But for most people, these bargain prices come with significant trade-offs in location, condition, and ongoing costs that explain why they remain empty in a country where urban housing is increasingly expensive. The cheap house phenomenon is less about housing abundance and more about the uneven effects of modernization on traditional communities.

The akiya market offers a fascinating glimpse into how demographic change, cultural preferences, and economic forces can create seemingly paradoxical outcomes—a country where you can buy a house for the price of a used car, but finding someone to sell it to later might prove nearly impossible.