Shrinking housing market, long-term vacancy, and withdrawal from housing market

Suzuki, Masatomo; Asami, Yasushi

doi:10.1007/s41685-020-00159-3

Cited by 6 publications

(3 citation statements)

References 47 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This supply/demand imbalance has soared in Japan's formerly booming suburbs [12,21,49] and causes the overall depreciation of property values [22]. Put in a comparative light, nonetheless, the correlation that the Japanese literature makes between depopulation, shrinkage, and land/real estate devaluation seems more straightforward than in other mature countries, where the "cold market" phenomenon exists but remains embedded in wider contexts of housing price inflation.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The correlation between depopulation, housing vacancy, and impoverishment has especially garnered the attention of geographers and economists. Their works highlight that a stronger pace of shrinkage systematically implies a further decrease in land prices [9][10][11][12]. An overall depreciation of the value of individually owned properties ensues.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

How Are Tier 2 Metropolises Affected by Housing Asset Value Deflation in the Depopulation Era? A Comparison between the Tokyo and Kansai Metropolitan Areas

Uto,

Buhnik,

Okazawa

2024

Land

View full text Add to dashboard Cite

This study analyzes the differences and similarities between Tier 1 (Tokyo) and Tier 2 (Kansai) metropolitan areas due to shrinking city problems. Both metropolitan areas will see a dramatic decrease in the housing asset value (HAV). Kansai is declining at a faster pace than Tokyo: it is projected that HAVs will register a further decrease of around 38% by 2045, and the decline will be quantitatively more important in the northern suburbs of Osaka. These results raised the question of whether Kansai would be more impoverished by HAV deflation. By focusing on the income multiplier of HAV per household, we find that Tokyo has a higher income multiplier of around 4 (against 2 for Osaka), thus causing much greater HAV deflation per household in Tokyo. Greater HAV deflation per household entails more severe problems for elderly households that need to finance their retirement. Considering our findings, despite earlier and faster trends of HAV deflation in the Tier 2 metropolitan area, the Tier 1 metropolitan area could face big socioeconomic challenges in the future. We conclude that HAV deflation leads to problems of different nature depending on metropolitan rank, rather than just knowing which one is losing more through HAV deflation.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

How Are Tier 2 Metropolises Affected by Housing Asset Value Deflation in the Depopulation Era? A Comparison between the Tokyo and Kansai Metropolitan Areas

Uto,

Buhnik,

Okazawa

2024

Land

View full text Add to dashboard Cite

show abstract

“…Housing units which remain vacant for long durations are considered a waste of housing stock (Molloy, 2016). The reasons for this can range from properties not meeting tenants' expectations (Wheaton, 1990) to not being profitable enough to place on the market (Suzuki and Asami, 2020). Landlords adjust rent prices to approximate the rental price as closely as possible to what the tenant will be willing to pay; the greater the discrepancy between the two, the longer the duration of vacancy (Jud et al, 1996;Ong and Koh, 2000).…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

The impact of apartment vacancies on nearby housing rents over multiple time periods: application of smart meter data

Baba

Shimizu

2022

IJHMA

View full text Add to dashboard Cite

Purpose This study aims to explore the spatial externalities of apartment vacancy rates on housing rent by considering multiple vacancy durations. Design/methodology/approach This research uses smart meter data to measure unobservable vacant houses. This study made a significant contribution by applying building-level smart meter data to housing market analysis. It examined whether vacancy duration significantly affected apartment rent and whether the relationship between apartment rent and vacancy rate differed depending on the level of housing rent. Findings The primary finding indicates that there is a significant negative correlation between apartment rent and vacancy duration. Considering the spatial externalities of apartment vacancy rates, the apartment vacancy rates of surrounding buildings did not show any statistical significance. Moreover, quantile regression results indicate that although the bottom 10% of apartment rent levels showed a negative correlation with all vacancy durations, the top 10% showed no statistical significance related to vacancies. Practical implications This study measures the extent of spatial externalities that can differentiate taxation based on housing vacancies. Originality/value The findings indicate that landlords have asymmetric information about their buildings compared with the surrounding buildings, and the extent to which price adjusts for long-term vacancies differs depending on the level of apartment rent.

show abstract

What types of houses remain vacant? Evidence from a municipality in Tokyo, Japan

Kanayama

Sadayuki

2021

Journal of the Japanese and International Economies

View full text Add to dashboard Cite

Shrinking housing market, long-term vacancy, and withdrawal from housing market

Cited by 6 publications

References 47 publications

How Are Tier 2 Metropolises Affected by Housing Asset Value Deflation in the Depopulation Era? A Comparison between the Tokyo and Kansai Metropolitan Areas

How Are Tier 2 Metropolises Affected by Housing Asset Value Deflation in the Depopulation Era? A Comparison between the Tokyo and Kansai Metropolitan Areas

The impact of apartment vacancies on nearby housing rents over multiple time periods: application of smart meter data

What types of houses remain vacant? Evidence from a municipality in Tokyo, Japan

Contact Info

Product

Resources

About