When Jesse and I arrived in Japan, living and renting an akiya house, one of Japan’s many abandoned or vacant houses, quickly became one of our dreams. It was an invigorating challenge that allowed us to break into the unknown terrain of house renovation, be a part of a countryside community, and experience house ownership for the first time.
Do you want to read more about our personal experiences living in an akiya house? Check out our We Moved into a Traditional Akiya House in Japan for some of our first impressions of living in one of these vacant homes.
However, as we embarked on our own house hunt, we encountered some challenges with finding our own “forever” akiya house. So, in the hopes that this may shed some light on others facing the same journey, here are some of the most frequently asked questions we have been asked (and have, in turn, asked ourselves) about these abandoned houses:
- What is an akiya house?
- Why are there so many of these abandoned houses in Japan?
- Can I, a foreigner, buy an akiya?
- Is Japan really giving away houses?
- Akiya banks, city halls & networking: How we started our house hunting journey
- What are some challenges we’ve learned about dealing with an abandoned house?
What is an akiya house?
In Japan, the term “akiya” (空き家) pertains to vacant homes left unoccupied. Whether it be inheritance issues or some of the inconvenient realities of living in an old house (renovations, cost of upkeep, remote location, just to name a few), there are various reasons for why a house is left abandoned or vacant in Japan.
However, these properties also present a unique opportunity for potential buyers, as they are frequently sold at significantly reduced prices or even offered for free for those seeking to divest themselves of these vacant assets.
Why are there so many of these abandoned houses in Japan?
According to government data from 2018, 8.5 million units of akiya houses are available, equivalent to 14% of Japan’s overall housing stock. There are many reasons why akiya houses remain unoccupied, including Japan’s aging population, declining birth rate, urbanization, inheritance issues, and economic factors. As younger generations seek job opportunities in the city and prefer urban living, rural areas are left with a surplus of these empty homes, with few people willing to return to give these homes a new life.
Inheritance laws can make it challenging to track down an individual homeowner. Family members not willing to pay property taxes associated with their inheritance may abandon properties, also contributing to the prevalence of unoccupied properties.
Can I, a foreigner, buy an akiya?
Yes, you can! Akiya properties are available for purchase even if you’re not a Japanese citizen. You don’t need a Japanese visa to buy one. However, you’ll still want to consider a long-term visa solution, such as work, cultural, spousal, and dependents visa, or permanent residency (PR) if you want to be able to live in your house for more than the three to six-month period allowed by a visitor visa.
Also, while you can buy an akiya house as a foreigner, it’s still a good idea to work with professionals who can help you navigate the legal and administrative aspects of the purchase. Buying one of these abandoned houses can be quite complicated, involving legal and financial complexities such as unpaid property taxes, inheritance disputes, and the search for long-lost family members entitled to inheritance.
Also, if you happen to be using an online akiya bank, some may require you to contact the relevant municipality and register with their system before you can use their services. Therefore, a majority of akiya properties on these online banks may not be available to buyers who are currently residing overseas.
Is Japan really giving away houses?
Yes, there are opportunities to get a free akiya house in Japan. Sites like Zero Estate is dedicated to listing these free houses in Japan. While it’s definitely tempting to jump at the chance to own a free house, we think it’s also important to keep in mind that acquiring one of these old houses may have substantial expenses associated with renovating and maintaining an older dwelling. You will also have to overcome the legal procedures and language barriers.
If you want to read more, Michael from CheapHousesJapan.com shares some words in his Japan’s $500 houses are, on the whole, often more trouble than they are worth, pointing out that some houses don’t meet quake-proofing standards, might have structural problems, and could require a lot of money to fix up before you can live there comfortably.
Akiya banks, city halls & networking: How we started our house hunting journey
One of the most buzzed-about terms you may have already heard is the akiya bank system. These akiya banks (空き家バンク, akiya banku) are online services either provided by local governments at the city, town, village, and municipality levels or even by real estate agents listing vacant homes. These can vary from text-based pages with PDFs of photos to online platforms providing detailed information on location, condition, price, and even virtual tours.
Some things to consider when using online akiya banks
When looking through some of the larger akiya bank websites, most will allow the casual visitor to browse the house listings for free. However, we have found that some municipal-run akiya banks may require you to register for their akiya program to receive more information about houses listed in their area.
This registration process can vary, ranging from a straightforward online or in-person sign-up with basic contact details to a more comprehensive procedure, such as composing a biography detailing your work, plans for the house area, and reasons for desiring to reside in the respective area, designed to assess your genuine interest in the living and working in the area.
While this process may be more time-consuming, it does provide a deeper look at the houses available for purchase, which may not be listed on larger real estate-run akiya banks. Keep in mind that many of these registration-only akiya banks require that you currently live in Japan with a valid form of Japanese ID.
Also, the municipalities responsible for managing these properties don’t act as real estate agents, so you will still be responsible for sourcing your own legal advice from professionals to help you navigate the house ownership process. Language barriers will also be a big one, and negotiations may also require direct communication with the house owner.
With that out of the way, here are some of the resources we have used for our house hunt, plus a list of English and Japanese akiya banks:
Akiya listings in Japanese
- Akiya-At Home website is one of the large-scale databases for registered vacant houses. There is a handy map categorizing each prefecture in Japan, which then brings up a list of photos of akiya houses, with the ability to search via city name to fine-tune your search.
- Lifull Homes, like Akiya-At Home, is another large-scale database of registered vacant houses. Lifull Homes is also organized in a similar way (map, prefecture, list of akiya houses with photos), and while there is an overlap in houses on both sites, we do occasionally stumble on a few new house listings here.
- The Ministry of Land, Infrastructure, and Transport might be one of the most bureaucratic-looking akiya banks, listing each local government-run akiya bank sites in text format, organized by prefecture and then city. What it lacks in good looks, it makes up for it (somewhat) that it links you directly to the local government-run akiya bank sites in the area in question, making this a decent starting point it you know exactly what area you are searching in.
- Zero Estate is another Japanese website listing houses that are available for free. However, as I mentioned above, these free houses often come with their own substantial expenses and maintenance tasks.
- The Japan Organization for Internal Migration (JOIN)
Akiya listings in English
The alternatives to a Japanese akiya bank are English akiya bank listings. While these tend to have fewer listings, I find them to be overall better-curated selections of abandoned houses, with English support for those interested in exploring the potential of akiya houses and resources on how to acquire and renovate these properties.
- CheapHousesJapan.com founder Micheal sifts through thousands of listings and selects the top 20 akiya listings for his paid newsletter subscription.
- Akiya Mart allows you to explore the akiya bank market using their map-focused platform. You can search via the map and click on the pins for more details about each house. To access all of their listings, you need a subscription, which costs 15 USD per month or 11 USD per month if you commit to a whole year.
- The English-friendly Koryoya has an excellently curated selection of traditional kominka houses (Japanese folk houses) and merchant townhouses.
Register at your city hall (if you’re already living in Japan)
If you are a resident of Japan, you might have the option to register for the akiya program at your local city hall. The services will depend on each government office, though we have encountered ones that send you a printed list of registered abandoned houses.
Some local governments even have departments that can assign you a government employee to provide one-on-one recommendations and assistance, though I think this is typically the exception, not the rule.
Get a real estate agent or broker specializing in akiya houses
I will be honest—finding a real estate agent or broker specializing in akiya houses can be quite challenging. These houses present unique challenges, such as locating family members who have inherited them, and they offer a small margin for commissions due to their low purchase costs. This makes it less profitable for brokers to deal with the challenges of akiya houses.
However, if you can find one, these professionals can provide valuable insight into the available houses in your area of interest and offer expertise and knowledge to help you find the perfect home that meets your requirements.
Anton in Japan has a great video detailing working with a broker specializing in akiya houses in his video, Buying a Cheap Japanese House – FULL Akiya Documentary.
Be here physically and network with the local community
The importance of being physically present, especially in rural areas, cannot be overstated. While this may be less of a concern in larger urban centers, it has become clear to us living here that building connections within the community and getting the support of residents has been an essential step in finding these houses, especially in areas like ours where so few housing listings end up on real estate or akiya bank sites.
Being here not only showed our sincere desire to live here, but it also gave us the valuable support of being endorsed by the locals. This endorsement is crucial in gaining introductions to individuals who might be aware of, or perhaps even own, an akiya house.
For instance, we found our current akiya rental with the help of a local resident who knew the owner personally. This connection allowed us to meet the owner in person. We brought gifts and expressed our sincere desire to make this place our home. Additionally, our local contact introducing us was the default assumption that they were also vouching for us, a valuable assurance to the owner on our behalf.
What are some challenges we’ve learned about dealing with an abandoned house?
As you may have guessed, purchasing an akiya house has its fair share of challenges. Depending on the house’s condition, it might need significant renovations, skilled labour, and a considerable investment of time and money. Before leaping into akiya house ownership, it’s crucial to consider these factors.
Unclear family ownership of houses
When it comes to seeking a single house owner to purchase a house in question, especially one abandoned for an extended period, it can become complicated… fast.
For example, many of these properties may not have a clear owner. If the homeowner passes away without establishing an individual to inherit, the property can end up being passed down to all descendants, their children, and subsequent generations. This can require you or a professional to track down all the descendants in order to obtain the necessary approvals for the property and house to be sold to you.
Tracking down all of these descendants is a challenge — not all will want to be contacted, and getting their hanko stamp (a personal seal similar to a signature) can be difficult on its own.
There are taxes, acquisition, and other hidden costs for buying an akiya
Since we are still renting our akiya house, purchasing one of these old homes is still a big mystery to us. Real Estate Japan’s So You’ve Bought an Akiya Vacant House in Japan and Want to Walk Away from it has a great breakdown of the fees and registration processes that I would recommend reading to learn more. Here, I will list some of the items their article mentions:
- Registration tax (登録免許税, touroku menkyozei) is required to transfer the akiya house ownership.
- The property acquisition tax (不動産取得税, fudosan shutoku zei) is also necessary.
- Pay the fixed asset tax (固定資産税, koteishisanzei) annually.
- Pay the city planning tax (都市計画税, toshi keikakuzei) annually.
- To handle with the legal filings and registrations, hire a judicial scrivener (司法書士, shihoushoshi)
There is cost and time required to renovate and maintain any akiya house
Although these abandoned homes offer an opportunity for affordable housing, they often require extensive renovation work, including structural repairs, plumbing and electrical updates, and cosmetic enhancements.
In addition to the financial costs, renovating an akiya house also requires a significant investment of time, taking months or even years to complete, depending on the extent of the renovations needed. This can be difficult if you’re looking for immediate housing solutions or have tight deadlines.
Many akiya are in remote locations in Japan
Many akiya houses are located in remote areas, which may necessitate having a car and a valid driver’s license. These rural locations also tend to lack convenient access to restaurants, bars, and grocery stores. Additionally, forging meaningful connections with neighbours in these rural areas may prove to be a challenge for individuals accustomed to the anonymity of urban environments.
I hope this article has helped answer some of your akiya house questions. In truth, we still have a lot of questions, and we will probably learn more as we continue our akiya house hunt ourselves. So you can be assured that this article will be updated as we continue our search. Have you ever had any experiences with akiya houses? I’d love to hear your thoughts and stories!
Hello, I’ve been watching all your videos and I don’t know if I missed something… I’m really wondering if you have some return on investment for all the costs of the renovation, given you can’t buy the house… Do you have them paid back by the owner or something like that?
Hi Florence, I appreciate your question! Since our annual payment is only 30000 yen (approximately 300 CAD), we essentially enjoy a free-living situation here. Therefore, contributing a little effort, even without a guarantee of compensation, is a valuable investment of our time. While we’re not planning to spend thousands on this house, making a few enhancements for comfort is absolutely worthwhile in our opinion.