March 2026 Japan Housing Starts ＆Non-Residential Construction Report
March total housing starts posted an abysmal YOY decline of 29.3% to finish at 63,495 units. However, some context is warranted. In March of last year housing starts surged 39% as builders rushed to break ground before the revised building codes came into effect in April 2025. Excluding this year prior surge and current housing starts have remained relatively consistent in recent months.
Looking first at YOY results owner occupied housing fell 27.4% compared to rental housing which declined 35.2%. The mansion condominium market declined 21.7%. Total wooden starts fell 26.9% to finish at 37,883 units. Post and beam starts slowed 26.2% to 28,970 units. Wooden pre-fab starts fell 37.2% to 810 units. Platform frame starts were down 28.4% to 8,103 units. By housing type 2×4 custom ordered owner-occupied homes fell 14% to 2,526 units, rentals dropped 35.6% to 4,877 units and built for sale spec homes receded 15.1% to 673 units. Alternatively, looking month over month and March total starts and total wooden starts increased 10% and 2×4 starts advanced 16%.
March YOY results for non-residential construction showed by the same trend – with disappointing numbers impacted by the relative surge in starts in March of 2025. March 2026 total non-residential starts finished down 25% to 3,435 units and total wooden units declined 41% to 1,130 units. Year to date through the end of March shows total starts falling 14% to 9,542 units and total wooden starts down 26% to 3,128 units. In order, the top five segments for wood use were: elderly, medical care and social welfare facilities, hotels and restaurants, mixed commercial and residential, business services and commercial wholesale & retail.