2025 Japan Construction Starts Report Year End Summary
2025 Japan Housing Starts Report Year End Summary
Housing starts in the first quarter of 2025 started out strong as builders sought to obtain permits before Building Standards Law revisions came into effect April 1,2025. In Q2 as additional permitting requirements took effect, housing starts plunged and recovered slowly by Q4. Total housing starts for the year fell 6.5% to 740,297 units. Total wooden housing fell 4.1% to 433,655 units. Post and beam housing fell 4.3% to 331,588 units. Wooden pre-fab housing edged 0.5% lower to 10,619 units. Total pre-fab homes declined 4.6% to 88,835 units. Two by four homes fell 3.8% to 91,448 units. Total 2×4 homes exceeded the number of pre-fab homes for the first time ever. The market share for 2×4 homes increased from 12.0% to 12.4%. Non-wood homes fell 11.3% to 228,426 units. The market share of all wooden homes increased from 57.1% to 58.6% for the year and consistently broke through 60% of all starts in the second half of the year. In short, challenging market conditions prevailed with total starts finishing under the 750,000 level. The declines were partially offset by relative market share gains in 2×4 and wooden housing.
2025 Japan Non-Residential Construction Year End Summary
Total non-residential starts increased 5% to 43,653 units however total floor area decreased 3% to 30,971,166m2. While non-residential wooden starts decreased 2% to 15,467 units, total wooden floor area increased 2% to 3,034,655m2. Wood’s market share of non-residential total floor area increased to its highest level yet at 9.9%. Looking at building types, noticeable increases in annual wooden floor area were evident in agricultural, transportation and logistics warehouses, medical, elderly care and social welfare as well as other/miscellaneous. While wood use in medical, elderly care and social welfare facilities continues to dominate, reaching as high as 2/3 of starts and 48% of total segment floor area, we are also seeing signs of a broadening base of demand in other building types as well.