EP 376 - Why Are Millions of Japanese Homes Abandoned? - Tsuyoshi Domoto - Founder of Akiya Air

Japan is facing a quiet crisis with over 9 million abandoned homes, known as akiya, scattered across the country—a number expected to double in the next decade. This phenomenon is largely driven by an aging population, declining birth rates, and continued migration to urban centers.

ATP spoke to Tsuyoshi Domoto, the Founder of Akiya Air, who has created a platform to help unlock the potential of akiya by offering a one-stop service for buying, renovating, managing, and monetizing these homes.

Some of the topics Tsuyoshi covered in detail:

• Japan’s tax system discourages demolition and incentivizes keeping decrepit houses standing.
• Navigating Japan’s real estate market as a foreigner can be quite challenging. Trying to purchase and renovate a rural home is nearly impossible without local help.
• While many foreigners may not know 'akiya' exist, those who do are enthusiastic. Some want a second home to visit regularly; others see it as an Airbnb-style investment for other foreign visitors.
• Financing can still be a major barrier as Japanese banks are still cautious about lending to foreigners, especially those without permanent residency.
• Akiya Air's vision is to create pockets of innovation and community in Japan’s countryside, akin to what he saw in Bali — digital nomads, creatives, and entrepreneurs co-living and co-working in revitalized areas.