The Average Family In Tokyo Can Buy A Home With No Money Down And Pay Just $850 USD Per Month

In many cities around the world the cost of owning a home is very unaffordable but recent studies show that the average middle-class family in Tokyo can still afford to buy a new, single-family detached home for around $300,000 USD. In most major cities around the world like New York, Sydney, London and Hong Kong the cost to buy a 3 bedroom detached house is simply a dream not afforded to the normal family.

There are multiple factors that keep Tokyo housing costs low. In other parts of the world housing is used as a speculative investment. In Japan families still view their home as a place to live, not simply an investment to be cashed in. The Japanese banks also offer loans with very low interest rates on homes over a 35 year period, sometimes with 100% financing, so no money down. Japan was even famous for having a negative interest rate at one point!

Lastly the zoning laws in Japan are national and not regional. So this means no red tape in dealing with local construction rules as there is a set standard across the nation. This makes it relatively easy for companies to build new homes in Japan unlike in other countries. With an increasing population of foreigners as well as reports that Japan is relaxing current immigration rules to allow in more foreign workers, the housing prices have been steadily trending upwards. Only time will tell if Tokyo's housing market will become unaffordable in the near future.

sources: core77