This is what many years of low fertility levels and no migration does to your real estate market. In Japan, where the median residential home or apartment sells for a low price just North of 200,000 dollars, there are reports of millions of empty houses in the country that can be had for a mere 25,000 dollars. In some regions the municipal governments are auctioning empty homes for just 500 dollars.

Japanese fertility rates are far below replacement levels and as a result the overall population continues to fall. The country also suffers from very low in-migration so the net effect is a very dampening effect on housing prices that is starting to bite.  Canada has similarly low fertility rates however the high immigration numbers will offset the lack of births meaning this housing depression seen in Japan is not likely to play out there. But for China its another story. China faces a crash starting just about any day now as its real estate market goes the way of Japans.

Not many are rushing to live there, the elderly population is in rapid decline and births per woman are a dismal 1.3 which is far lower than the 2.1 needed to maintain the population. When the tipping point arrives for China is anyones guess but the writing is on the wall. This is going to come as a considerable shock to the average Chinese who has all his net worth tied up in second and third homes. But in the future we should expect to see similar discounts on property there as the millions upon millions of empty homes and apartments there finally become too big a burden to be carried.

Anyone still saying “its different in China” needs to have his head examined. Its not different there. Its going to eventually mirror exactly what is happening in Japan today.

Want a fixer-upper in Japan? You could nab one of millions of country houses for sale for just $25,000.

https://www.businessinsider.com/old-houses-for-sale-japan-akiya-prices-fixer-upper-2023-4?op=1