More than half of the regions in Japan have new home prices that are over 10 times the annual income

SelfStaking · 2026-03-13T09:28:59+00:00

In regions outside Tokyo, Japan, the prices of newly built residential buildings have risen significantly, with average housing prices exceeding 10 times the local annual income, making it difficult for ordinary salaried families to buy homes. The national price-to-income ratio is 10.38 times, indicating that single-income families find it hard to afford new homes. Experts point out that a more realistic range for house prices is within 5 to 7 times annual income.

SelfStaking

2026-03-13 09:28:59

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

Real estate research company Tokyo KANTEI has calculated the “price-to-income ratio” by dividing the average price of newly sold new residential buildings (based on 70 square meters) by the local average annual income for each prefecture in 2024. The average across 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 means that families with only one working member find it difficult to afford a new home. Tsunazawa Takashi, director of MFS, which offers housing loan consultation services “MogeCheck,” pointed out, “Considering a 35-year loan, a house price of 5 to 7 times annual income is more realistic. If it exceeds 8 times, life becomes difficult.”

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