Graph and download economic data for Residential Property Prices for Japan (QJPN628BIS) from Q1 1955 to Q4 2024 about Japan, residential, HPI, housing, price index, indexes, and price.

In 1985 the international exchange rate intervention known as “The Plaza Accord” was carried out between the G-5 countries, the US, Japan, Germany, France, and the UK. In this study I employ the synthetic control method (SCM) to examine if there was a causal effect of The Plaza Accord on residential housing prices in Japan. Following the agreement Japan experienced a bubble in urban real estate and the stock market. I find small and insignificant effects of the Plaza Accord on real housing prices in the several years following it, providing evidence that the Accord did not exacerbate the bubble.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

Estimated commercial land price bubble sizes of Japan’s prefectures (%).

Estimation results in Japan (1980–1999).

Prefabricated Houses Market Outlook

The global prefabricated houses market size was valued at approximately USD 153 billion in 2023 and is projected to reach an impressive USD 265 billion by 2032, growing at a CAGR of 6.5% during the forecast period. This robust growth can be attributed to several factors, including increased demand for affordable housing, rapid urbanization, and advancements in construction technologies. The prefabricated housing market is gaining momentum as it offers a cost-effective, time-efficient, and sustainable solution to traditional construction methods.

One of the primary growth factors for the prefabricated houses market is the surging demand for affordable housing solutions across the globe. With urban populations swelling and the cost of traditional construction rising, prefabricated houses offer a more economical alternative. Governments and private entities are increasingly investing in prefabricated housing projects to address housing shortages and provide quality living spaces at a fraction of the cost and time required by conventional construction. This trend is expected to continue, driving the market forward.

Another significant driver for market growth is the technological advancements in the construction industry. Innovations such as Building Information Modelling (BIM), 3D printing, and advanced materials have revolutionized the prefabricated housing sector. These technologies enable higher precision in manufacturing, enhance the structural integrity of prefabricated components, and provide greater customization options. As these technologies become more accessible and integrated into construction practices, the adoption of prefabricated houses is likely to accelerate.

The growing emphasis on sustainability and environmental conservation is also fueling the demand for prefabricated houses. Compared to traditional construction methods, prefabricated houses generate less waste, reduce carbon emissions, and make more efficient use of materials. Additionally, prefabricated homes can incorporate energy-efficient designs and renewable energy systems, aligning with global efforts to combat climate change. As consumers and governments alike prioritize sustainable living, the prefabricated housing market stands to benefit significantly.

Regionally, the Asia Pacific region holds a substantial share of the prefabricated houses market, driven by rapid urbanization, a burgeoning middle class, and government initiatives to promote affordable housing. Countries like China, Japan, and India are at the forefront of this growth, with significant investments in prefabrication technologies and large-scale housing projects. North America and Europe are also key markets, propelled by technological advancements and a growing preference for sustainable construction practices. Meanwhile, regions such as Latin America and the Middle East & Africa are expected to witness gradual growth as economic development and urbanization progress.

Type Analysis

The prefabricated houses market can be segmented by type into Modular, Panelized, Pre-Cut, and Manufactured homes. Among these, modular homes hold a significant share due to their versatility and ease of assembly. Modular homes are constructed in sections or modules in a factory setting and then transported to the site for final assembly. This method allows for better quality control, reduced construction time, and fewer delays caused by weather or labor shortages. The modular housing segment is expected to witness robust growth as it caters to both residential and commercial needs efficiently.

Panelized homes, which involve assembling large wall, floor, and roof panels on-site, are also gaining traction in the market. This type offers a middle ground between modular and traditional construction methods, combining the speed of prefabrication with some level of on-site customization. Panelized homes are particularly popular in regions with stringent building codes and where customization is a key requirement. The adaptability of panelized construction to different architectural styles and climates makes it a favorable choice for many developers.

Pre-Cut homes, often referred to as kit homes, involve manufacturing building components in a factory and then assembling them on-site according to a specific design. This type of prefabrication allows for a high degree of customization and is particularly popular among DIY enthusiasts and in regions with a strong tradition of self-built homes. Pre-Cut homes offer cost savings and reduced construction time, although the

Prefabricated House Market Outlook

The global prefabricated house market size is expected to reach approximately USD 153.7 billion by 2023 and is projected to grow to USD 243.5 billion by 2032, exhibiting a CAGR of 5.2% during the forecast period. This growth is largely driven by the increasing demand for affordable housing and the need for rapid urbanization. The market's expansion is further bolstered by technological advancements in prefabrication, which enhance the quality and efficiency of construction processes. As construction costs surge and urban populations swell, the prefabricated housing sector is gaining attention as a viable solution to meet housing demands efficiently and sustainably.

One of the primary growth factors for the prefabricated house market is the rising need for cost-effective housing solutions. Traditional construction methods often involve higher labor costs, longer construction times, and significant material wastage. Prefabricated houses address these issues by offering a streamlined and efficient approach to housing development. Prefabrication reduces construction time by up to 50%, leading to lower labor costs and minimized on-site disruptions. Additionally, the precision in manufacturing components results in less material waste, making prefabricated houses an environmentally friendly choice. This cost-effectiveness is particularly appealing in regions facing housing shortages and budget constraints.

Another significant driver is the increasing emphasis on sustainability within the construction industry. Prefabricated houses are inherently more sustainable due to their efficient use of materials and energy. The off-site construction process allows for better quality control and less environmental impact compared to traditional methods. Moreover, prefabricated homes can incorporate eco-friendly technologies such as solar panels and rainwater harvesting systems, aligning with the global shift towards green building practices. Governments and organizations worldwide are implementing stricter environmental regulations and incentives for sustainable construction, which further accelerates the adoption of prefabricated houses.

Technological advancements in prefabrication are also propelling market growth. Innovations such as 3D printing, advanced robotics, and digital modeling are enhancing the design and construction of prefabricated houses. These technologies allow for greater customization and precision, enabling the production of complex structures with high-quality finishes. As a result, prefabricated houses are no longer limited to basic designs and can now meet diverse architectural preferences and requirements. This technological evolution not only improves the aesthetic appeal of prefabricated houses but also increases their acceptance among consumers who traditionally favored conventional construction methods.

Regionally, the Asia Pacific market is poised for substantial growth, driven by rapid urbanization and increasing disposable incomes. Countries like China, India, and Japan are witnessing significant demand for affordable and efficient housing solutions, and prefabrication offers a compelling answer to these needs. In North America, the drive towards sustainable construction practices and smart city initiatives is fueling the adoption of prefabricated houses. Europe is also experiencing growth due to strong governmental support for sustainable housing and stringent building standards. Meanwhile, Latin America and the Middle East & Africa are gradually embracing prefabricated constructions, although at a slower pace compared to other regions, due to varying economic conditions and infrastructure development levels.

Log Cabins have emerged as a unique and appealing option within the prefabricated house market, particularly for those seeking a rustic and natural living environment. These structures, often crafted from high-quality timber, offer an aesthetic charm that blends seamlessly with natural surroundings, making them a popular choice for vacation homes and rural retreats. The construction of log cabins benefits from the prefabrication process, which allows for precision in crafting and assembling the logs, ensuring durability and insulation. This type of housing not only provides a cozy and inviting atmosphere but also aligns with sustainable building practices, as wood is a renewable resource. As interest in eco-friendly and nature-integrated living spaces grows, log cabins are gaining traction among consumers looking for a harmonious blend of traditional design and modern constru

With the collapse of the U.S. housing market and the subsequent financial crisis on Wall Street in 2007 and 2008, economies across the globe began to enter into deep recessions. What had started out as a crisis centered on the United States quickly became global in nature, as it became apparent that not only had the economies of other advanced countries (grouped together as the G7) become intimately tied to the U.S. financial system, but that many of them had experienced housing and asset price bubbles similar to that in the U.S.. The United Kingdom had experienced a huge inflation of housing prices since the 1990s, while Eurozone members (such as Germany, France and Italy) had financial sectors which had become involved in reckless lending to economies on the periphery of the EU, such as Greece, Ireland and Portugal. Other countries, such as Japan, were hit heavily due their export-led growth models which suffered from the decline in international trade. Unemployment during the Great Recession As business and consumer confidence crashed, credit markets froze, and international trade contracted, the unemployment rate in the most advanced economies shot up. While four to five percent is generally considered to be a healthy unemployment rate, nearing full employment in the economy (when any remaining unemployment is not related to a lack of consumer demand), many of these countries experienced rates at least double that, with unemployment in the United States peaking at almost 10 percent in 2010. In large countries, unemployment rates of this level meant millions or tens of millions of people being out of work, which led to political pressures to stimulate economies and create jobs. By 2012, many of these countries were seeing declining unemployment rates, however, in France and Italy rates of joblessness continued to increase as the Euro crisis took hold. These countries suffered from having a monetary policy which was too tight for their economies (due to the ECB controlling interest rates) and fiscal policy which was constrained by EU debt rules. Left with the option of deregulating their labor markets and pursuing austerity policies, their unemployment rates remained over 10 percent well into the 2010s. Differences in labor markets The differences in unemployment rates at the peak of the crisis (2009-2010) reflect not only the differences in how economies were affected by the downturn, but also the differing labor market institutions and programs in the various countries. Countries with more 'liberalized' labor markets, such as the United States and United Kingdom experienced sharp jumps in their unemployment rate due to the ease at which employers can lay off workers in these countries. When the crisis subsided in these countries, however, their unemployment rates quickly began to drop below those of the other countries, due to their more dynamic labor markets which make it easier to hire workers when the economy is doing well. On the other hand, countries with more 'coordinated' labor market institutions, such as Germany and Japan, experiences lower rates of unemployment during the crisis, as programs such as short-time work, job sharing, and wage restraint agreements were used to keep workers in their jobs. While these countries are less likely to experience spikes in unemployment during crises, the highly regulated nature of their labor markets mean that they are slower to add jobs during periods of economic prosperity.

Ratios of the average apartment price to the average monthly salary per capita in Tokyo and Osaka in Japan*.

From the onset of the Global Financial Crisis in the Summer of 2007, the world economy experienced an almost unprecedented period of turmoil in which millions of people were made unemployed, businesses declared bankruptcy en masse, and structurally critical financial institutions failed. The crisis was triggered by the collapse of the U.S. housing market and subsequent losses by investment banks such as Bear Stearns, Lehman Brothers, and Merrill Lynch. These institutions, which had become over-leveraged with complex financial securities known as derivatives, were tied to each other through a web of financial contracts, meaning that the collapse of one investment bank could trigger the collapse of several others. As Lehman Brothers failed on September 15. 2008, becoming the largest bankruptcy in U.S. history, shockwaves were felt throughout the global financial system. The sudden stop of flows of credit worldwide caused a financial panic and sent most of the world's largest economies into a deep recession, later known as the Great Recession. The World Economy in recession
More than any other period in history, the world economy had become highly interconnected and interdependent over the period from the 1970s to 2007. As governments liberalized financial flows, banks and other financial institutions could take money in one country and invest it in another part of the globe. Financial institutions and other non-financial companies became multinational, meaning that they had subsidiaries and partners in many regions. All this meant that when Wall Street, the center of global finance in New York City, was shaken by bankruptcies and credit freezes in late 2007, other advanced economies did not need to wait long to feel the tremors. All of the G7 countries, the seven most economically advanced western-aligned countries, entered recession in 2008, before experiencing an even deeper trough in 2009. While all returned to growth by 2010, this was less stable in the countries of the Eurozone (Germany, France, Italy) over the following years due to the Eurozone crisis, as well as in Japan, which has had issues with low growth since the mid-1990s.

From the Summer of 2007 until the end of 2009 (at least), the world was gripped by a series of economic crises commonly known as the Global Financial Crisis (2007-2008) and the Great Recession (2008-2009). The financial crisis was triggered by the collapse of the U.S. housing market, which caused panic on Wall Street, the center of global finance in New York. Due to the outsized nature of the U.S. economy compared to other countries and particularly the centrality of U.S. finance for the world economy, the crisis spread quickly to other countries, affecting most regions across the globe. By 2009, global GDP growth was in negative territory, with international credit markets frozen, international trade contracting, and tens of millions of workers being made unemployed.

Global similarities, global differences

Since the 1980s, the world economy had entered a period of integration and globalization. This process particularly accelerated after the collapse of the Soviet Union ended the Cold War (1947-1991). This was the period of the 'Washington Consensus', whereby the U.S. and international institutions such as the World Bank and IMF promoted policies of economic liberalization across the globe. This increasing interdependence and openness to the global economy meant that when the crisis hit in 2007, many countries experienced the same issues. This is particularly evident in the synchronization of the recessions in the most advanced economies of the G7. Nevertheless, the aggregate global GDP number masks the important regional differences which occurred during the recession. While the more advanced economies of North America, Western Europe, and Japan were all hit hard, along with countries who are reliant on them for trade or finance, large emerging economies such as India and China bucked this trend. In particular, China's huge fiscal stimulus in 2008-2009 likely did much to prevent the global economy from sliding further into a depression. In 2009, while the United States' GDP sank to -2.6 percent, China's GDP, as reported by national authorities, was almost 10 percent.