Japan Housing Starts Slow Sharply, Still Beat Expectations
2026-07-31 05:14
By
Farida Husna
1 min. read
Japan’s housing starts increased 18.6% year-on-year in June 2026, easing significantly from a 33.9% surge in the previous month but marking the third consecutive month of growth.
The latest reading also comfortably exceeded market expectations of a 12.8% increase, suggesting housing construction remained resilient despite the moderation.
Growth slowed across major categories, including owner-occupied homes (15.7% vs. 31.8% in May), rental housing (24.6% vs. 33.3%), and built-for-sale homes (14.2% vs. 39.2%).
Meanwhile, starts for two-by-four homes fell 7.4%, reversing a 24.8% increase in May.
In contrast, prefabricated housing starts rebounded strongly, rising 13.7% after a 3.4% decline in May.