Construction materials in Japan - statistics & facts
There are a variety of materials used in the construction of buildings and infrastructure. Due to a global shortage, construction material prices in Japan started rising significantly in 2021, and soaring wood prices resulted in a so-called wood shock.
Supply chain issues caused by the coronavirus pandemic and rising demand for construction materials due to economic recovery have led to a global shortage of construction materials. As a consequence, construction and building material prices in Japan began to rise significantly in 2021. Prices for some materials such as wood peaked in 2022. Other materials like steel continued to increase in 2023, driven by inflation and a weak yen that let import prices and raw material prices rise.
The government has promoted the use of wood in low-rise public buildings to revitalize the domestic forestry industry and has extended its promotional efforts to private mid- to high-rise buildings in light of its decarbonization goals. Wood has gained attention as a potential substitute for steel and concrete to reduce the carbon footprint of buildings, and major companies in Japan have started to use timber in non-residential mid- to high-rise building projects.
Since 2021, Japan has been affected by a massive wood shortage and soaring prices, referred to as wood shock. Prices for wood peaked in 2022 and started to recover in 2023. Although two-thirds of its land area is forest, Japan is largely dependent on imports to meet the demand for wood in housing construction, as the domestic forestry industry has been unable to compete with cheap imports. As a result, home builders are facing price hikes, which threaten to dampen demand in the housing market.
Construction materials
Different types of materials are used in construction. Some of them occur naturally, while others are manufactured. The most basic materials include concrete, wood, steel, and aggregate. Materials differ in various ways, such as durability and strength. Considerations about safety, longevity, and price trends determine which materials are used in construction projects. Building codes, technological advancements, and material innovation can play an additional role in the choice of material.Supply chain issues caused by the coronavirus pandemic and rising demand for construction materials due to economic recovery have led to a global shortage of construction materials. As a consequence, construction and building material prices in Japan began to rise significantly in 2021. Prices for some materials such as wood peaked in 2022. Other materials like steel continued to increase in 2023, driven by inflation and a weak yen that let import prices and raw material prices rise.
Wood as a construction material
Wood is one of the oldest natural materials used in building construction and still plays an important role in Japan’s housing market. Making up about 80 percent of low-rise residential building starts, timber is the preferred structure in single-family homes. Overall, 58 percent of new houses built every year are wood structure buildings.The government has promoted the use of wood in low-rise public buildings to revitalize the domestic forestry industry and has extended its promotional efforts to private mid- to high-rise buildings in light of its decarbonization goals. Wood has gained attention as a potential substitute for steel and concrete to reduce the carbon footprint of buildings, and major companies in Japan have started to use timber in non-residential mid- to high-rise building projects.
Since 2021, Japan has been affected by a massive wood shortage and soaring prices, referred to as wood shock. Prices for wood peaked in 2022 and started to recover in 2023. Although two-thirds of its land area is forest, Japan is largely dependent on imports to meet the demand for wood in housing construction, as the domestic forestry industry has been unable to compete with cheap imports. As a result, home builders are facing price hikes, which threaten to dampen demand in the housing market.
