Understanding vacant home demolition costs and subsidies in Japan

Nationwide, vacant homes have doubled in 30 years, reaching approximately 9.02 million in 2023, with the vacancy rate hitting a record high of 13.8%. Demolition costs for vacant homes vary, with a typical wooden two-story house costing around 1.5 to 2.5 million yen, excluding additional fees. Recycling efforts are made for demolition waste. While some municipalities offer demolition subsidies for dangerous vacant homes, property taxes on land with a house are reduced, potentially discouraging demolition. A new system allows the government to take over inherited land, but not land with buildings.