Japan's Akiya Problem: Millions of Vacant Homes Driven by Tax and Inheritance Issues

Across Japan, something unusual is happening in plain sight. Entire neighbourhoods have houses that still stand, but nobody lives inside them anymore. Windows stay closed for years. Gardens grow wild, and paint fades slowly in the weather and over time. Reportedly, Japan has around 9 million vacant homes, a figure that keeps increasing. It feels surprising at first, almost unreal for a developed country. Yet the numbers are official. Experts suggest this is not a simple housing surplus. It appears to be a deeper structural issue tied to population decline, inheritance problems, and outdated policy incentives that no longer match present-day reality.

What is driving the rise of abandoned homes in Akiya, Japan

Japan’s vacant houses, often called akiya, are spread across the country. They are not only found in remote villages. Many exist in suburban areas and even near busy cities. The 2023 housing survey shows that around 13.8% of all homes in Japan are empty, which is a record high level. Out of the 9 million vacant homes, a large portion is not available for rent or sale. Some are second homes or temporary properties. But a significant share falls into the category of completely unused and abandoned houses. These are homes where no one lives, no one rents, and no clear plan exists for their future use. It is not always due to neglect. In many cases, families inherit a house and move to another city. Over time, the property is left behind. In other situations, ownership becomes unclear across generations. Slowly, the number of unused houses keeps rising year after year.

Japan’s tax system that quietly keeps empty houses standing

One of the biggest reasons these houses are not demolished is related to Japan’s property tax system. Land that has a residential building on it receives a significant tax reduction. In some cases, the tax on residential land can be reduced to around one-sixth compared to cleared land. This creates a strange situation for owners. If they demolish the house, the land tax can increase sharply. If they leave the building standing, even if it is unused or damaged, the tax remains lower. As a result, many owners choose not to demolish properties, even when they are no longer needed. Demolition itself is also expensive. A simple wooden house can cost around one to one-and-a-half million yen to remove. For many families, this is a major financial burden, especially when the property has little or no resale value. Experts say this combination of tax rules and demolition costs creates a strong incentive to do nothing. And in many cases, doing nothing becomes the most practical option for owners.

Why inheritance issues are leaving homes empty across Japan

Another major factor behind Japan’s vacant homes problem is inheritance complexity. When property passes from one generation to another, ownership is often divided among multiple heirs. Over time, this can involve dozens of people. In some cases, heirs do not live in the same region or even the same country. Some may not even be aware they have inherited a share of a property. Others may disagree on what should be done with it. As a result, decision-making becomes extremely difficult. Selling the property requires agreement from all owners. Demolition also needs approval. Even basic maintenance becomes complicated when ownership is unclear. Experts say that a large number of properties in Japan are affected by incomplete inheritance registration. This leads to what is often described as “frozen ownership,” where no action can be taken for years.

What happens to abandoned houses over time

When homes are left empty for long periods, they begin to deteriorate. Without regular maintenance, roofs can leak, wooden structures can weaken, and mould can develop inside the property. Gardens often become overgrown, and pests may appear. Local authorities sometimes become concerned when abandoned houses pose safety risks. In certain cases, structurally unsafe buildings can affect nearby properties or public areas. Communities may also face financial pressure when trying to manage or demolish severely damaged homes. It is reportedly common for some akiya to remain untouched for years or even decades, slowly becoming more difficult and expensive to restore.

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