The rent rise rate in Tokyo is overwhelmingly moderate and excellent compared with major cities such as the United States and the United Kingdom

In recent years, there are large cities hit by remarkably rapid rise in land prices such as San Francisco and London, the Japanese capital · Tokyo is overwhelmingly higher in rent rise than major cities in other countries It is pointed out that it is gentle and excellent.

Why Tokyo is the land of rising home construction but not prices - FT.com
http://www.ft.com/cms/s/023562e2-54a6-11e6-befd-2fc0c26b3c60,Authorised=false.html

Tokyo may have found the solution to soaring housing costs - Vox
http://www.vox.com/2016/8/8/12390048/san-francisco-housing-costs-tokyo

The graph below shows the rent rise rate and population growth rate in 2015 against 1995 in London, Tokyo, Minato-ku, Tokyo, San Francisco, USA. Even in Minato-ku, Tokyo, which has a high population growth rate in Tokyo, the proportion of rent rise is smaller for the population increase in Tokyo as a whole, you can see that the rate of rise rises is suppressed. In contrast, it can be confirmed that although the population growth rate of London is smaller than that of Minato-ku, Tokyo, the rent rise rate is over 400% over incredible rent rise.


However, paying attention to the point that the rent rise rate of this graph does not consider inflation at all. In 1995-2015, Japan was in perfect deflation, while London and San Francisco maintained a constant inflation rate. However, even considering the inflation rate, San Francisco's rate of rent increase is about 100%, so it seems that rent has doubled substantially in just 10 years.

The cause of the rise in rents in London and San Francisco is extremely simple, because the housing supply has not kept up to population inflows at all. For example, in the Bay Area on the West Coast of the United States, 60,000 workers have increased in a single year in 2015, while only 5,000 new home supplies have been supplied. On the other hand, in Tokyo, the number of houses newly supplied in 2014 was more than 140,000 and the California state, which has three times the population of Tokyo, has increased by 83,657 more overwhelmingly than in the new housing It seems that it is said that it appears in the amount of rent rise increase rate that the supply amount of the house is high.


In the first place, why investigate the reasons why housing supplies can not keep up in the United States, it is thought that there is a "Not In My Back Yard (NIMBY)" activity there. This refers to the actions of neighboring residents stopping against the construction of new houses, and "the new housing is the circumstances of strangers who are unknown", so the construction of new houses by neighboring residents is blocked It seems to be in.

On the other hand, regulations on the construction of new houses are loose in Japan, for example, in the case where there is a land owner who tries to demolish a house in Tokyo and make a joint housing with six one-room facilities, most of the laws that neighboring residents can block There is none. Therefore, according to the market principle that new houses are supplied according to vigorous demand, the rate of rise in rent will become naturally moderate.

In big cities such as Boston, San Francisco and New York, which are suffering from rapid rise in rents, urban development circumstances in Tokyo may be helpful for making solutionsVoxI point out.