New housing starts up 6.6% in 2021

According to the Ministry of Land, Infrastructure, Transport, and Tourism (MLIT), new housing starts across the country reached 865,909 units in 2021, up 6.6% from 2020.

This is the first increase in three years. Housing starts were low in 2020 due to the initial state of emergency declaration which saw a temporary pause in business activity. 

Custom detached home builds increased by 6.9% to 281,279 units, while build-to-sell detached homes increased by 11.4% to 144,124 units. Rental housing, including blocks of flats, increased by 9.2% to 330,752 units. 

Meanwhile, condominium apartments dropped by 5.0% to 102,762 units as developers continued to struggle to secure development sites in a competitive market. In the greater Tokyo area, new starts of condominium apartments dropped by 11.2%. In the Tokyo metropolitan area, the supply dropped by 12.1% to 29,216 units. The shrinking supply and rising construction costs have contributed to the high market price of apartments nationwide.

Sources:
The Ministry of Land, Infrastructure, Transport, and Tourism, April 28, 2022.
The Yomiuri Shimbun, April 30, 2022.

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