Determinants of Tenure Choice in Japan: What Makes You a Homeowner?

23 Pages Posted: 5 Jan 2017

See all articles by Toshiaki Aizawa

Toshiaki Aizawa

Asian Development Bank Institute

Matthias Helble

Asian Development Bank; ADBI; ADBI

Date Written: December 19, 2016

Abstract

Despite Japan’s highly developed housing market, little is known about the determinants of renter-to-home-owner tenure transition. Exploiting the Japanese longitudinal household data of the Keio Household Panel Survey (2004–2013), this paper aims to close this gap. Our results show that income level and increase in family size are the strongest determinants for home-ownership in Japan. We find that although both rural and urban households with higher incomes are more likely to transition to home-ownership, access in rural areas is more equally distributed over various income groups. Since most of the previous empirical studies on tenure choice pay little attention to wealth as a measure of purchasing power, possibly due to data limitation, we draw attention to it and its relative levels. We find that household wealth levels matter, particularly in urban areas, whereas in rural areas home-ownership is more equally distributed. Nonetheless, given the relatively low levels of household wealth among renters, our results suggest that income is a more important determinant of successful tenure transition.

Keywords: home-ownership, housing tenure, tenure choice in Japan, Japanese home-owner

JEL Classification: R21; R30

Suggested Citation

Aizawa, Toshiaki and Helble, Matthias, Determinants of Tenure Choice in Japan: What Makes You a Homeowner? (December 19, 2016). ADBI Working Paper 625, Available at SSRN: https://ssrn.com/abstract=2893407 or http://dx.doi.org/10.2139/ssrn.2893407

Toshiaki Aizawa (Contact Author)

Asian Development Bank Institute ( email )

Kasumigaseki Building 8F
3-2-5, Kasumigaseki, Chiyoda-ku
Tokyo, 100-6008
Japan

Matthias Helble

Asian Development Bank ( email )

Philippines
006326831120 (Phone)

ADBI ( email )

Kasumigaseki Building 8F
3-2-5, Kasumigaseki, Chiyoda-ku
Tokyo, 100-6008
Japan

ADBI ( email )

Kasumigaseki Building 8F
3-2-5, Kasumigaseki, Chiyoda-ku
Tokyo, 100-6008
Japan

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
32
Abstract Views
313
PlumX Metrics