Japan Housing Starts Rebound Less than Estimated

Japan’s housing starts increased 11.4% yoy in April 2026, shifting from a 29.3% decline in the previous month and marking the first expansion since last October. However, the figure fell short of market expectations for a 15.5% rise. Growth was broad-based across all segments, including owner-occupied homes (19.5% vs -27.4% in March), rental housing (17.3% vs -35.2%), built-for-sale housing (3.4% vs -21.7%), prefabricated housing (11.1% vs -4.7%), and two-by-four homes (64.8% vs -28.4%).

Japan’s housing starts plunged 29.3% yoy in March 2026, worsening from a 4.9% decline in the previous month and underperforming market expectations for a 28.5% fall. This marked the fifth straight month of contraction and the steepest decline since May 2025, highlighting persistent weakness in the property sector amid higher construction costs and weak demand. Declines were broad-based across all segments, including rental housing (-35.2% vs -2.7% in February), owner-occupied homes (-27.4% vs -4.7%), built-for-sale housing (-21.7% vs -8.8%), prefabricated housing (-4.7% vs -2.2%), and two-by-four homes (-28.4% vs -7.7%).

Japan’s housing starts fell 4.9% yoy in February 2026, worsening from a 0.4% decline in the previous month and slightly missing market expectations for a 4.7% drop. This marked the fourth straight month of contraction and the steepest decline since last November, pointing to sustained weakness in the property sector amid higher construction costs and soft demand. Declines were broad-based across all segments, including rental housing (-2.7% vs -1.5% in January), owner-occupied homes (-4.7% vs 6.6%), built-for-sale housing (-8.8% vs -4.8%), prefabricated housing (-2.2% vs 5.1%), and two-by-four homes (-7.7% vs 8.7%).