Japan is facing a demographic crisis, with its population falling rapidly. Yet, demand for new houses is increasing greatly too. These trends seem incongruous, with a falling population seemingly offsetting the need for new housing. However, the relationship between population and housing is complex, involving elements of place, both economic and cultural.
Japan has the world’s oldest population, measured by the proportion of people aged 65 and over. National data for 2020 show that 29% of the total population of the country (125 million) is aged 65 and over, with more than 10% aged 80 and over. The proportion aged 65 and over is expected to reach 35% by 2040. Japan also has one of the world’s lowest birth rates, with fewer than 1 million babies born in 2022, the lowest since records began. Its total population is projected to fall significantly in the coming century (see Figures 1a and b, above, and Table 1, below).
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