[claudeganon]

It’s actually pretty simple: housing isn’t an investment vehicle like it is in many parts of the West. The social and historical reasons why this is so in Japan are complicated, but the overall circumstances are not.

You can either have affordable housing that’s not an appreciating asset or let finance/real estate Capital run roughshod over everything in speculative flurries, leading to the insane state of affairs in many western cities today. You can’t have both.

[diet_mtn_dew]

I read today that Fortress Investments purchased over 100,000 affordable units from the Japanese government for 60bn JPY in 2017 and plans to spend about as much on renovation. [1] Apparently firms like this usually expect an 18% return on these kinds of investments.

[1] https://www.wsj.com/articles/fortress-becomes-japans-biggest...

[claudeganon]

Yes and if all of its housing tilts this way, Japan too will spiral into unaffordability. But most families still live in single family homes that depreciate in value over time.

[roymurdock]

you can have both as long as productivity is growing, increasing labor's bargaining power and wages

unfortunately productivity is pretty stagnant across developed economies, including japan

if capital and business owners have no need for new/enhanced labor as is the case in many developed economies where offshoring/new hire cycling is rampant, then a housing affordability crisis definitely builds up, unless:

(1) the municipal/federal government steps in to regulate rent as it has done in Berlin

(2) there is a good architectural/geological/tax incentive that prevents NIMBYISM

(3) cultural/work factors allow the younger gen to live at home/work remotely

[orthecreedence]

Wait, housing is socialized in Japan? Or is there some kind of non-socialized-but-non-privatized ownership situation? Do you have any further reading on this?