In Japan, a fascinating trend has emerged among content creators, who are purchasing and renovating abandoned homes known as 'akiyas' at remarkably low prices. Notably, Japan is confronting a significant problem with vacant houses, reaching a record of nine million - exceeding the population of New York City. As per BBC, these neglected properties can be purchased in Tokyo for a fraction of the cost of homes in other major cities worldwide. The bargains become even more enticing outside of Tokyo, where prices plummet further. In some remote locations, the deals are almost unbelievable, with some akiyas being given away entirely for free.
This phenomenon has sparked widespread interest and inspiration among aspiring homeowners and renovation enthusiasts struggling to enter the real estate market. The allure of transforming neglected spaces into cosy abodes has captivated audiences, making content creators showcase these makeovers.
Interestingly, anyone can buy real estate in Japan, regardless of their nationality. Social media platforms have been flooded with videos of foreigners snapping up affordable Japanese homes and transforming them into chic guesthouses and cafes, garnering millions of views and followers.
One such person is Swedish national Anton Wormann who transformed an abandoned akiya into a lucrative vacation rental, generating substantial returns. The property, purchased and renovated for approximately $110,000, now commands $500 per night on Airbnb and yields a monthly rental revenue of $11,000, according to documents reviewed by CNBC Make It. Mr Wormann has also purchased seven other properties in the country and completed renovations on three of them.
''There are dying villages [in Japan] ... I think, from a cultural perspective, there are a lot of beautiful houses that are going to waste. There are a lot of things that used to thrive, maybe 30, 35, 40 years ago, that are now being abandoned and being forgotten and it's, it's fascinating, but it's also kind of sad. But you can save them, you can salvage them,'' he said.
However, the process of buying these homes is not easy. Getting a mortgage from a Japan-based bank is nearly impossible as a non-resident. So non-resident foreigners basically need to buy real estate in cash. Language barriers can also be a significant issue.
Previously, these abandoned houses were found primarily in rural areas. However, the trend is spreading to major cities like Tokyo and Kyoto. Experts say that Japan's declining population is the cause of this significant rise in houses without people. Meanwhile, Japan's elderly population is booming, with people aged 65 and over making up about 30% of the country's total population, according to 2024 data. Death rates have surpassed birth rates in Japan, contributing to abandoned properties.
Experts like Jeffrey Hall, a lecturer at Kanda University of International Studies, emphasise that the abundance of empty homes is a stark reflection of Japan's shrinking population. ''It's not really a problem of building too many houses” but “a problem of not having enough people,'' he said.
'Akiyas' are often passed down through generations. But with Japan's plummeting fertility rate, many are left with no heir to pass to or are inherited by younger generations who have moved to the cities and see little value in returning to rural areas, experts told CNN.
According to figures compiled by the Ministry of Internal Affairs and Communications, 14% of all residential properties in Japan are vacant.
