Housing Assistance Measures in Japan's Changing Market

This report examines the current state of housing assistance measures in Japan, particularly in the context of rising interest rates and a declining population. It outlines the existing support mechanisms, such as mortgage tax credits, which primarily target middle- and low-income households. The report highlights challenges faced by these households, including increased dependence on debt and a surplus of housing stock compared to the number of households. It discusses the anticipated changes in the housing market due to potential interest rate increases and demographic shifts. The government is urged to adapt its financial support strategies to focus on asset accumulation rather than merely reducing debt burdens. Additionally, the report suggests promoting the use of existing homes over new constructions and draws comparisons with international housing support schemes, such as the Lifetime ISA in the U.K., as potential models for Japan's housing policy. Overall, the report emphasizes the need for a strategic shift in housing assistance to better support prospective homeowners.