Japan: order value for home renovations 2023

The value of orders for the renovation of dwellings received by construction companies in Japan amounted to around 4.3 trillion Japanese yen in the fiscal year 2023. This represented a year-on-year increase of nine percent. The total value of orders for building renovation rose by 14.9 percent.

Home renovation market in Japan

Japan’s home renovation market, which included costs for refurbishments, facility repair and maintenance, and furniture and interior, reached 7.3 trillion yen in 2022 and was forecast to expand to 7.7 trillion yen by 2030. Home renovations only account for a small share of new home constructions in Japan, as consumers tend to prefer new homes over used ones. This is because housing policies of the past decades have encouraged the supply of new homes instead of focusing on utilizing the existing housing stock. However, the situation could change, as recently, new homes have become increasingly expensive due to soaring material prices and labor costs.

Japan’s housing stock

Due to the focus on new constructions, Japan has a massive stock of around 62 million housing units. Policies have emphasized quantity over quality, and many homes do not meet the current standards for insulation performance, which is a reason for consumers to avoid second-hand homes. Improving the quality of Japan’s housing stock could become a driver for growth in the renovation market, especially considering the government’s goal to achieve carbon neutrality by 2050. Next to repair and maintenance works, energy-saving measures, disaster prevention, and home modifications for the elderly were already the main purposes of home renovation orders in fiscal 2023.

Order value for the renovation of dwellings in Japan from fiscal year 2014 to 2023 (in trillion Japanese yen)

Characteristic	Order value in trillion Japanese yen
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Release date

June 2024

More information

Region

Japan

Survey time period

fiscal years 2014 to 2023; the Japanese fiscal year starts on April 1 of the stated year and ends on March 31 of the following year

Number of respondents

5,000 respondents

Special properties

among licensed construction companies that received orders as prime contractors*

Method of interview

Postal questionnaire

Supplementary notes

*Including all large-scale businesses and a randomly selected sample of other companies.

Renovation works surveyed include extension works (excluding the construction of separate buildings), partial reconstruction works (excluding full reconstructions), remodeling and renovation, as well as maintenance and repair works.

Figures prior to fiscal year 2021 come from previous report.

100 Japanese yen equal 0.64 U.S. dollars or 0.59 euros as of June 2024.

Values have been rounded.

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