Forecast: Housing Cost Overburden in Japan

In 2023, the percentage of households in Japan devoting more than 40% of their income to housing costs stood at 54%. The data forecasts a significant downward trend from 2024 to 2028. Specifically, it is expected to decline from 49% in 2024 to 24% in 2028. This represents year-on-year variation rates: -14.29% in 2025, -14.29% in 2026, -16.67% in 2027, and -20% in 2028. The compound annual growth rate (CAGR) over the five years is approximately -14.48%, indicating a substantial yearly decrease in the burden of housing costs on Japanese households.

Future trends to watch for include the impact of government policies aimed at reducing housing costs, potential changes in household income levels, shifts in demographic patterns, and broader economic conditions that could influence housing affordability.