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

In Japan, price increases for newly built apartment and housing buildings in regions outside Tokyo have also become clearly noticeable. Against a backdrop that includes rising construction costs and land prices, sales prices have increased, and the average prices in 24 prefectures—which account for more than half of Japan nationwide—have exceeded 10 times the local annual income. Across Japan, newly built apartment and housing buildings are increasingly becoming unaffordable for ordinary working families.

Real estate research firm Tokyo KANTEI calculated the “price-to-income ratio” by taking the average price of newly sold newly built apartment and housing buildings in 2024 (converted to 70 square meters) by prefecture, dividing it by the local average annual income. The nationwide average in Japan is 10.38 times, up from 10.09 times in 2023, and it has exceeded 10 times for 2 consecutive years.

A price-to-income ratio above 10 means that it is difficult for a household with only one earner to buy a new home. Takashi Shiozawa, director of MFS, the company behind the housing loan consultation service “MogeCheck,” said, “If you consider it on the assumption of a 35-year loan, it is realistic for the home price to be about 5 to 7 times annual income. If it exceeds 8 times, life becomes difficult.”

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