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

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 all Japan, exceeding ten times the local annual income. Nationwide, newly built residential buildings are becoming unaffordable for average working families.

Real estate research company KANTEI Tokyo has calculated the “price-to-income ratio” by dividing the average price of newly sold new residential buildings (based on 70 square meters) in 2024 by the local average annual income, by prefecture. 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 times 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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