In more than half of Japan's regions, the price of new homes is over ten times the annual income.

In Japan, the increase in prices of newly built residential buildings outside Tokyo has also become apparent. Against the background of rising construction costs and land prices, sales prices have risen, with the average price in 24 prefectures, which account for more than half of Japan, exceeding ten times the local annual income. Throughout Japan, newly built residential buildings are becoming unaffordable for ordinary salaried families.

The real estate research company Tokyo KANTEI has calculated the “price-to-income ratio” by dividing the average price of newly sold residential buildings in 2024 (converted to 70 square meters) in each prefecture by the local average annual income. The national average in Japan is 10.38 times, up from 10.09 times in 2023, marking two consecutive years above 10 times.

A price-to-income ratio exceeding 10 times indicates that families with only one working member find it difficult to afford a new home. Takashi Saltzawa, a director of MFS, which offers housing loan consultation services through “MogeCheck,” pointed out that “considering a 35-year loan, a house price of 5 to 7 times the annual income is more realistic. If it exceeds 8 times, life becomes difficult.”

To continue reading, please click here to visit the Nikkei Chinese website.

Japan Economic News Agency merged with the Financial Times in November 2015 to form a single media group. An alliance formed by the two newspapers, Japan and the UK, which were founded in the 19th century, is promoting collaboration across a wide range of fields under the banner of “high quality, the strongest economic journalism.” As part of this effort, the Chinese websites of both newspapers have implemented article exchanges.