May 2022 Japan Housing Starts
May 2022 Japan Housing Starts
For the first time in 15 months, May housing starts fell 4.3% to 67,193 units. The weakness was predominant in owner occupied housing as the segment declined 6.9%. In contrast, rental housing gained 3.5%. The mansion condominium market plunged 19.9%. Wooden housing fell 6.6% to 38,427 units. Post and beam starts fell 6.1% to 30,536 units. Wooden prefab starts were down 7.1% to 697 units and total prefab housing remained flat at 8,993 units. Platform frame declined 8.9% to 7,194 units. Results of 2×4 starts by housing type were as follows: single family custom homes fell 14.3% to 2,278 units, rental housing slowed 6.7% to 3,952 units and built for sale spec housing softened 2.8% to 961 units. Rising inflation in Japan, (a term I thought I would never use), appears to be starting to impact consumer confidence and spending.
May 2022 Non-Residential Construction
Total non-residential starts remained flat at 3,880 units and wooden non-residential starts declined 6.3% to 1,402 units. Wooden total floor area fell 3.4% to 276,314m2. Sluggish conditions prevailed irrespective of building type. Elderly care and social welfare facilities, agricultural buildings and mixed commercial-residential buildings were the top categories for wood use.