In Japan, “akiya” (空き家) refers to vacant homes that have been abandoned due to a growing phenomenon driven by demographic shifts and economic changes. Low birth rates over the past few decades, rapid urbanization as well as an ageing population has decimated rural areas. This has led to many traditional houses being left empty. These properties are often inherited by heirs who cannot afford to maintain or renovate them.
Indeed, approximately 59% of akiya are bequeathed properties (Tochibayashi & Kutty, 2024) and tax policies discourage demolition (in Japan, vacant land is taxed more heavily than land with buildings). This has led to an increase in the number of akiya across the country.
By the end of 2023, Japan will have approximately 9 million akiya homes (roughly 13,8% of all Japanese households!The number of akiya has doubled since 1993 (Iizuka 2024; Nippon.com 2024).
Even urban areas like Tokyo have tens of thousands of houses that have been vacant for years.
Akiya Investment Opportunity
Although akiyas appear as bargain real estate for investors at first glance, they are not without their challenges.
The majority of these homes are in rural areas that have little economic activity and limited population, which can lead to uncertain rental demand or resale opportunities. Although purchase prices can be low, renovations costs are high, especially if the home is older and needs structural repairs, new utilities, or to comply with strict building codes.
The legal complexities, fragmented ownership, low liquidity, and ongoing maintenance are all risk factors. An akiya may quickly become a liability if there is no local demand for the property or no clear business plan.
Investors with a passion and strategic vision for restoration will find that akiya have cultural and lifestyle benefits far beyond the monetary value.
Repurposing Akiya Homes for Hospitality
Investing shrewdly in akiya can be a great way to get a high return on investment. Many akiya feature kominka, which are traditional pre-WWII Japanese farmhouses that showcase classic Japanese craftsmanship. These homes appeal to tourists looking for authentic rural experiences.
Western real estate agents The market has shifted to cater to foreigners who are looking for a slice of Japan. Renovated Akiya have been transformed into guesthouses or boutique inns. Common models include:
- Airbnb-style short-term rentals in renovated kominka and machiya townhouses are listed on many specialized platforms. Old Houses Japan.
- Boutique hotels (called ryokan in Japan) This design preserves the traditional look while incorporating modern features.
- Digital nomads can find a peaceful environment and high-speed internet in co-living hubs for remote work. (Richardson).
Albergo diffuso (scattered hotel) is an innovative concept that transforms villages into hotels.
Guests can stay in a restored akiya located throughout a town or hamlet, while sharing centralized reception services. Local communities also benefit from the renovation of buildings.
Examples like NIPPONIA in Sasayama showcase this blend of heritage preservation and sustainable tourism (murabito.nipponia.or.jp).
What are some of the challenges?
Despite its appeal, investing an akiya has risks.
- Renovation Costs: Many akiya are plagued by structural issues, such as rotting timbers, termites or mold, or an outdated infrastructure. Renovations for heritage homes require special skills and may exceed the initial budget.
- Legal and Zoning Restriction: Many properties located on agricultural land need to be converted into lodging. Minpaku’s 2018 law limits short-term rentals to 180 days without a hotel licence, but some municipalities provide exemptions for tourism. It takes diligence to navigate these regulations.
- Ownership and bureaucracy The ownership may be unclear because of fragmented heirships, complicating sales. Legal and language barriers are additional obstacles for foreign investors. Local partnerships, therefore, are advised.
- Market Demand and seasonality: Rural hospitality ventures often depend on seasonal factors, such as festivals, natural attractions, or cultural attractions. A year-round solution to making an akiya more sustainable is to be close to hot springs and to appeal to digital nomads.
- Return on Investment and Financing Banks might hesitate to lend money for remote properties because of the uncertain resale values. ROI can vary widely. Urban luxury rentals have higher margins while rural projects are aimed at budget travelers, and take longer to break even.
Due to these hurdles, investors must conduct thorough feasibility analyses, engage with local stakeholders, and maintain financial flexibility.
Investing in akiya can help revitalize a community and offer unique hospitality experiences.
Akiya Investments – Government Initiatives & Incentives
In order to combat rural decline, Japan’s national and municipal governments encourage akiya revitalization through a variety of incentives. Most municipalities compile lists of vacant homes for sale or rent (known as “akiya banks”). Some towns offer houses to new residents for as little as $500 (approx. To attract new residents, some towns offer houses for a pittance (approx.
Tax incentives, grants, and renovation subsidies are all ways to support the restoration effort (Nippon Tradings International 2024).
Mayors can force property owners to fix or demolish dangerous and dilapidated properties, or even revoke their tax breaks.
Startup visas are granted to entrepreneurs in cities such as Imabari who invest in local business (Goh, 2020). The mix of free listing, legal support, tax relief and subsidies encourages investors and newcomers alike to breathe new energy into akiya.
The Ministry of Land, Infrastructure, Transport and Tourism of Japan provides a platform online that offers comprehensive information about Akiya.
Looking for Japanese Fixer-Upper Investments?
Here is some advice for hospitality investors who are considering akiya:
- Find property via akiya banks: Search municipal registries for real estate and verify ownership.
- Renovation needs assessment: Spend generously on repairs, termite treatments, seismic retrofittings, and modern amenities. Don’t forget Japan’s 10% tax on services.
- Understanding regulations is important Check the zoning requirements, building codes, and registration requirements before renting out your property. Verify visa and work regulations if you’re managing operations as an outsider.
- Leverage local assistance: Contacting tourism offices or planning offices early can help facilitate grants, loans and advice.
- Prioritize authenticity, experience and quality: Stand out from the conventional hotel by preserving traditional features such as shoji screens, tatami, and onsen baths.
Successful akiya to hospitality ventures require meticulous planning, a creative vision, and alignment with local tourism patterns.
Even without language, cultural or regulatory barriers, renovating an old building can be a difficult task.
Intrepid investors who are willing to leverage government programs while respecting local contexts will be able to unlock Japan’s hidden riches and contribute towards rural revitalization.
References
Goh, A. Goh, A. They purchased an abandoned house for $6,500 in rural Japan. They are renting out the house on Airbnb at $130 per night. Business Insider. https://www.businessinsider.com/millennial-couple-moved-to-japan-abandoned-home-akiya-renovation-guesthouse-2024-11
Iizuka, N. (2024, November/December). What is the status of Japan’s empty house problem? Japan Spotlight Japan Economic Foundation https://www.jef.or.jp/journal/pdf/258th_Economic_Indicators.pdf
Nippon.com. 2024 (April 30) Japan’s number of vacant homes will reach record levels in 2023. https://www.nippon.com/en/japan-data/h01987/
Nippon Tradings International. (2024, June 8). Akiya, a Japanese phenomenon. https://nippontradings.com/akiya-a-japanese-phenomenon/
Nipponia. Retrieved May 19, 2020, from https://murabito.nipponia.or.jp/
Richardson, J. 2025, 5 February Japan offers new subsidies to attract digital nomads. Essential Japan. https://essential-japan.com/news/japan-launches-digital-nomad-initiative/
Teh, C. (May 31, 2021). Japanese government selling houses for $500 in rural areas. Business Insider. https://www.businessinsider.com/japanese-government-selling-rural-homes-cheap-akiya-banks-2021-5
Tochibayashi, N., & Kutty, N. (2024, March 18). Turning Japan’s burgeoning empty homes into community assets. World Economic Forum https://www.weforum.org/stories/2024/03/turning-japan-s-surging-empty-homes-into-community-assets/
