2022.03.13 UpDate

SUNDAY, MARCH 13, 2022

The Renovation Market Forecast for Japan Projected to Go Over 6 Trillion yen in 2022

According to Rethinktokyo.com, the Yano Research Institute conducted a survey and released its findings. The survey was aimed at the home renovation market and its projection for 2022. Based on the research, the market is estimated to be in the ranges of about 6.5 to 7 trillion yen, for the year 2022. Depending on the pandemic cases for this year and if things are relaxed, more spending on travel, leisure, food and beverages is expected to rise. Should this occur, that means that the renovation market is also expected to be  a bit limited.

The renovation market has been experiencing an increase since the year 2020. While other industries suffered immensely during the pandemic, real estate was experiencing an increase in demand. The importance of enhancing one’s living environment is what increased the demand for more housing and in turn, increased the renovation needs of houses.

The renovation market size, for the previous year in 2021, was estimated at around 6.9 trillion yen, an increase of 5.7 percent, YoY. When looking at the renovation market within the past 10 years, it has remained fairly steady and strong.  The research conducted also predicts the possibility of an upward swing because of the houses owned by the Gen x population. These are the adults that are between the ages of 40-49 years old. Most of the homes owned by these individuals are due for renovations. This generation is also considered to have the highest purchasing and spending power within Japan population. Based on the stats, the total spending power of the Gen X equates to roughly 48 trillion yen per annum!


Source: RethinkTokyo