Construction materials in Japan - statistics & facts
The building and construction sector is a carbon intensive industry that contributes significantly to global greenhouse gas emissions each year. Given the government’s goal to achieve carbon neutrality by 2050, efforts to reduce carbon emissions have also come into focus in the Japanese construction sector. After skyrocketing in 2021, construction and building material prices remained high in the past year. Rising prices for wood, steel and other materials have resulted in declining demand for new construction.
The construction materials market is influenced by the development of new construction and vice versa. Paired with higher labor costs, price increases resulted in declining demand for new residential construction in 2023. The market for finishing materials in the housing industry remained at the level of previous years, since higher prices offset a decline in demand.
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. Over 50 percent of new houses built every year are wood structure buildings. So far, the use of wood has been predominant in low-rise residential building construction, but it has recently gained attention as a potential substitute for steel and concrete to reduce the carbon footprint of buildings and the government has been promoting its use in mid- to high-rise buildings.
Construction material prices in Japan have remained on a high level throughout the past year. High material prices are considered one reason for the number of new residential construction starts dropping in 2023. Considering the significant environmental footprint of construction materials and Japan’s goal of becoming carbon neutral by 2050, efforts to reduce carbon emissions in the construction sector have come into focus recently.
Construction material prices remain high
Japan saw prices for construction and building materials such as wood, steel, and cement increase significantly in 2021. This was the result of supply chain issues caused by the pandemic and geopolitical tensions, which led to a global shortage of construction materials. Material prices have remained on a high level since, driven by inflation and a weak yen that let import and raw material prices rise.The construction materials market is influenced by the development of new construction and vice versa. Paired with higher labor costs, price increases resulted in declining demand for new residential construction in 2023. The market for finishing materials in the housing industry remained at the level of previous years, since higher prices offset a decline in demand.
Carbon footprint of construction materials
The construction sector is responsible for a substantial share of greenhouse gas emissions globally. Emissions are not only released during the construction, but also throughout the whole lifecycle of buildings and infrastructure and the manufacturing process of materials. These hidden emissions are referred to as embodied carbon. In light of the government’s decarbonization efforts and new regulations regarding the insulation performance and energy consumption of new buildings in 2025, construction companies are required to reduce their carbon emissions.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. Over 50 percent of new houses built every year are wood structure buildings. So far, the use of wood has been predominant in low-rise residential building construction, but it has recently gained attention as a potential substitute for steel and concrete to reduce the carbon footprint of buildings and the government has been promoting its use in mid- to high-rise buildings.
Construction material prices in Japan have remained on a high level throughout the past year. High material prices are considered one reason for the number of new residential construction starts dropping in 2023. Considering the significant environmental footprint of construction materials and Japan’s goal of becoming carbon neutral by 2050, efforts to reduce carbon emissions in the construction sector have come into focus recently.
