Demand Fluctuations Driven by Economic Conditions, Interest Rates and Housing Tax Policy
First written in FY2016. 17 of 35 entries say "Worsened", first in FY2018-Q2. Latest entry: 2026-08-12.
R.C.Core moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 35 of 50 companies on the "Worse" side.
20 other companies' latest entry also says "Worsened".
- 2026-08-12WorsenedEarnings
「The housing market remained weak, as the rush demand following amendments to the Building Energy Conservation Act and other regulations subsided, while soaring home prices resulting from higher construction costs and trends in mortgage interest rates also had an impact.」
The company attributed weakness in the housing market to the unwinding of rush demand, higher construction costs and trends in mortgage interest rates. - FY2026WorsenedAnnual report
「Partly due to the prolonged review period for building confirmation applications, housing starts from April 2025 through March 2026 declined 12.9% year on year, while starts of new wooden owner-occupied detached homes declined 12.3%. Housing starts turned down again after increasing in the previous fiscal year and are expected to remain weak.」
Regarding housing demand, new housing starts decreased 12.9% from the previous fiscal year and new detached wooden owner-occupied housing starts decreased 12.3%, turning to declines again after increasing in the previous period. - FY2025-H1WorsenedAnnual report
「However, downside risks to Japan's economy from weakness in overseas economies are becoming apparent, including the prolonged high interest-rate environment in the US and Europe and stagnation in China's real estate market. The situation also requires close monitoring of inflation, conditions in the Middle East and volatility in the financial and capital markets.」
In addition to the previously identified external-environment risks relating to economic conditions, interest rates and financial markets, the disclosure identifies high interest rates in the US and Europe, stagnation in China's real estate market, inflation and conditions in the Middle East as downside factors. - FY2024WorsenedAnnual report
「New housing starts from April 2023 to March 2024 decreased 7.0% from the previous fiscal year, while new detached wooden owner-occupied housing starts also decreased 10.5%. The market is expected to remain weak going forward.」
In the housing market, new housing starts decreased 7.0% from the previous fiscal year and new detached wooden owner-occupied housing starts decreased 10.5%, indicating continued weakness in demand for owner-occupied housing. - FY2024-Q3WorsenedAnnual report
「In the housing market, new housing starts have weakened due to changes in post-pandemic consumer behavior and higher prices. Conditions remain challenging, particularly as owner-occupied housing starts have been below the same month of the previous year for 2 consecutive years.」
The disclosure states that weakness in the housing market has continued against a backdrop of changes in post-pandemic consumer behavior and higher prices, with owner-occupied housing starts below the same month of the previous year for 2 consecutive years. - FY2024-Q2RestatedAnnual report
「However, the economic outlook is expected to remain uncertain due to the impact on consumption of sharp yen appreciation and higher prices resulting from rising energy costs and raw-material prices, economic trends under global monetary tightening, and developments in Ukraine and Palestine. In the housing market, new housing starts have weakened in recent months. Although rental housing has remained broadly flat, owner-occupied housing starts continue to decline, leaving the market in an uncertain situation.」
While stating that there are no new business or other risks or material changes, the disclosure reconfirms uncertainty in the external environment, including higher prices, monetary tightening, developments in Ukraine and Palestine, and declining owner-occupied housing starts. - FY2024-Q1RestatedAnnual report
「In Japan's housing market, total new housing starts have remained firm due to an increase in rental housing, but owner-occupied housing starts have continued to decline, leaving the market in an uncertain situation.」
The disclosure reconfirms that rental housing remains firm, while the decline in owner-occupied housing starts continues. - FY2023WorsenedAnnual report
「In Japan's housing market, new housing starts decreased 0.6% from the previous fiscal year, while new detached wooden owner-occupied housing starts decreased 12.0%, as support programs such as subsidies and tax cuts that had helped drive demand for owner-occupied housing during the COVID-19 pandemic ended at the end of fiscal 2021, tax reforms including a lower mortgage-tax deduction rate were introduced in fiscal 2022, and construction costs rose due to surging global timber prices, known as the "wood shock," and shortages of construction materials. The market is expected to remain weak going forward.」
Against a backdrop of the expiration or reduction of housing acquisition support measures, surging timber prices and material shortages, detached wooden owner-occupied housing starts decreased 12.0% year on year, indicating further weakness in demand conditions. - FY2023-Q3WorsenedAnnual report
「The global economy faces concerns over an economic slowdown in the US and the euro area due to inflation and higher interest rates. In addition, the outlook for the Chinese economy remains uncertain due to the shift away from its zero-COVID policy and the real estate downturn.」
In addition to the previously identified economic, interest-rate and financial-market risks, the disclosure identifies an economic slowdown in the US and euro area, China's shift away from its zero-COVID policy and its real estate downturn as sources of uncertainty. It also explains that the weakening trend in demand for custom-built owner-occupied housing continues in Japan's housing market. - FY2023-Q2WorsenedAnnual report
「In Japan's housing market, conditions remain challenging, with owner-occupied housing starts in September down 13.3% and declining for the 10th consecutive month.」
Owner-occupied housing starts decreased 13.3% year on year, marking the 10th consecutive month of decline. The deterioration in housing demand conditions continues. - FY2023-Q1WorsenedAnnual report
「However, uncertainty about the outlook due to the conflict in Ukraine remains, and the risk of an economic downturn due to higher raw-material prices, supply constraints, yen depreciation and volatility in the financial and capital markets continues to require close monitoring.」
In addition to the previously identified economic-environment risks, the disclosure identifies the conflict in Ukraine, higher raw-material prices, supply constraints and yen depreciation as downside factors for the economy. It also states that there have been no new business or other risks or material changes to existing risks. - FY2022-Q2Improvement in the housing market and new sources of demandAnnual report
「In Japan's housing market, new housing starts increased as housing acquisition support measures, including the Green Housing Points program and the extension of housing loan tax deductions, supported consumption. New needs relating to lifestyles and housing have also emerged as a result of new living habits and purchasing behavior arising from the COVID-19 pandemic.」
The disclosure states that new housing starts increased against a backdrop of housing acquisition support measures, while new needs relating to lifestyles and housing emerged from changes in living habits and purchasing behavior associated with the COVID-19 pandemic. The Group continues to monitor the impact of infectious diseases and other factors on its business. - FY2022-Q1MaterialisedAnnual report
「The Group will continue to monitor developments concerning the impact on its business of the spread of COVID-19 and the resulting sharp rise in housing timber prices and supply shortages, known as the "wood shock."」
In addition to the pandemic, sharp increases in housing timber prices and supply shortages continue to have a visible impact on the business. - FY2021MaterialisedAnnual report
「In the housing market, total new housing starts from April 2020 to March 2021 decreased 8.1% year on year due to declines in owner-occupied, rental and for-sale housing, while new detached wooden owner-occupied housing starts decreased 6.1%,」
Total housing starts and detached wooden owner-occupied housing starts declined year on year, confirming continued weakness in demand conditions. - FY2021-Q3MaterialisedAnnual report
「The Group continues to operate in a challenging business environment, including by introducing an appointment system and limiting visitor numbers at LOGWAY (showrooms) operated nationwide to avoid the Three Cs. Although sales activities continue through initiatives such as private living-experience sessions that capitalize on the strength of standalone showrooms and online seminars, the spread of the pandemic has also affected construction in various ways, including disruptions to meetings with customers that have extended construction start schedules.」
Visitor restrictions, disruptions to construction-related meetings and longer construction start schedules due to COVID-19 continued. The disclosure states that new contract units decreased 23.8% year on year and consolidated contract orders decreased 11.1%. - FY2021-Q2MaterialisedAnnual report
「The Group was forced to restrict sales activities by introducing an appointment system and limiting visitor numbers to avoid the Three Cs at LOGWAY (showrooms) operated nationwide. As a result, the number of housing units ordered decreased 15% year on year. The spread of the pandemic has also had various effects on construction, including disruptions to meetings with customers that extended construction start schedules.」
Restrictions on sales activities and disruptions to meetings caused by COVID-19 materialized as a 15% year-on-year decline in the number of housing units ordered and longer construction start schedules. - FY2021-Q1RestatedAnnual report
「There were no newly arising business or other risks during the current first quarter. Nor were there any material changes to the business and other risks described in the annual securities report for the previous fiscal year. The Group will continue to monitor developments concerning the impact of COVID-19 on its business.」
While stating that there were no new risks or material changes to existing risks, the disclosure continues to monitor the impact of COVID-19. The effects of the pandemic continued during the quarter, including restrictions on sales activities, delays in government applications and a 6.4% year-on-year decline in orders received. - FY2020WorsenedAnnual report
「As the Group's principal customers are individuals, its business may be affected by declines in personal consumption resulting from employment conditions, land-price trends, interest-rate trends, changes in housing-related tax policies, natural disasters, and the outbreak and spread of epidemics.」
The disclosure explicitly adds the outbreak and spread of epidemics to the previously identified risks of demand fluctuations related to economic conditions, interest rates and tax policies. It states that the COVID-19 pandemic affected visitor numbers and contracts in March, while housing starts decreased 7.3% year on year. - FY2020-Q3WorsenedAnnual report
「In the housing market, total new housing starts from April to December 2019 decreased 6.5% year on year, with the seasonally adjusted annualized rate in December at 852,000 units, while new detached wooden owner-occupied housing starts increased 1.2%.」
The decline in total housing starts widened from 5.1% year on year in the previous period to 6.5%. Meanwhile, the increase in detached wooden owner-occupied housing starts narrowed from 5.2% to 1.2%. - FY2020-Q2Overall decline in the housing market and increase in owner-occupied housing startsAnnual report
「In the housing market, total new housing starts from April to September 2019 decreased 5.1% year on year, with the seasonally adjusted annualized rate in September at 897,000 units, while new detached wooden owner-occupied housing starts increased 5.2%.」
Total housing starts decreased 5.1% year on year, while detached wooden owner-occupied housing starts increased 5.2%. The disclosure updates trends by housing-market segment. - FY2020-Q1Decline in total housing starts and increase in owner-occupied housing startsAnnual report
「In the housing market, total new housing starts from April to June 2019 decreased 4.7% year on year, with the seasonally adjusted annualized rate in June at 922,000 units, while new detached wooden owner-occupied housing starts increased 10.8%.」
Total new housing starts decreased 4.7% year on year, while detached wooden owner-occupied housing starts increased 10.8%. - FY2019Increase in the housing market and an outlook for broadly flat conditionsAnnual report
「In the housing market, new housing starts from April 2018 to March 2019 increased 0.7% year on year, with the seasonally adjusted annualized rate in March at 989,000 units, while new detached wooden owner-occupied housing starts increased 2.5%. The market is expected to remain broadly flat for the time being.」
Both housing starts and new detached wooden owner-occupied housing starts turned to year-on-year growth, and the market is expected to remain broadly flat for the time being. - FY2019-Q3Narrowing decline in the housing market and an increase in owner-occupied housing startsAnnual report
「In the housing market, new housing starts from April to December 2018 decreased 0.5% year on year, with the seasonally adjusted annualized rate in December at 961,000 units, while new detached wooden owner-occupied housing starts increased 1.2%. The market is expected to remain broadly flat for the time being.」
The decline in new housing starts narrowed from 1.1% to 0.5% year on year, while new detached wooden owner-occupied housing starts turned to a 1.2% increase. The market is expected to remain broadly flat for the time being. - FY2019-Q2Narrowing decline in the housing market and an outlook for broadly flat conditionsAnnual report
「In the housing market, new housing starts from April to September 2018 decreased 1.1% year on year, with the seasonally adjusted annualized rate in September at 943,000 units, while new detached wooden owner-occupied housing starts decreased 0.5%. The market is expected to remain broadly flat for the time being.」
Housing starts and new detached wooden owner-occupied housing starts declined year on year, but the declines narrowed from the previous quarter's disclosure, and the market is expected to remain broadly flat for the time being. - FY2019-Q1External uncertainty and continued weakness in the housing marketAnnual report
「Although there are risks of an economic downturn due to developments in trade issues and volatility in the financial and capital markets, imports and exports are expected to continue recovering against a backdrop of a gradual recovery in overseas economies. In the housing market, new housing starts from April to June 2018 decreased 2.0% year on year, with the seasonally adjusted annualized rate in June at 915,000 units, while new detached wooden owner-occupied housing starts decreased 1.3%. The housing market is expected to remain weak for the time being.」
The disclosure identifies the risk of an economic downturn due to trade issues and volatility in the financial and capital markets, and states that housing starts also declined year on year. - FY2018WorsenedAnnual report
「In the housing market, new housing starts from April 2017 to March 2018 decreased 2.8% year on year, with the seasonally adjusted annualized rate in March at 895,000 units, while new detached wooden owner-occupied housing starts decreased 2.9%. The housing market is expected to remain weak for the time being.」
The decline in new housing starts widened from 1.3% year on year in the previous period to 2.8%, and the disclosure states that the housing market is weakening. - FY2018-Q3WorsenedAnnual report
「In the housing market, new housing starts from April to December 2017 decreased 1.3% year on year, with the seasonally adjusted annualized rate in December at 936,000 units, while new detached wooden owner-occupied housing starts decreased 2.9%. The market is expected to remain broadly flat for the time being.」
The decline in new housing starts widened from 0.7% to 1.3% year on year, while the decline in new detached wooden owner-occupied housing starts widened from 2.8% to 2.9%. The disclosure continues to state that the housing market is weakening. - FY2018-Q2WorsenedAnnual report
「In the housing market, new housing starts from April to September 2017 decreased 0.7% year on year, with the seasonally adjusted annualized rate in September at 952,000 units, while new detached wooden owner-occupied housing starts decreased 2.8%. The market is expected to remain broadly flat for the time being.」
The disclosure states that new housing starts and new detached wooden owner-occupied housing starts declined year on year and that the market was weakening. - FY2018-Q1RestatedAnnual report
「Although there are risks of an economic downturn due to overseas economic uncertainties and volatility in the financial and capital markets, the economy remained on a gradual recovery track, with improvements in employment, income conditions and corporate earnings.」
The disclosure continues to identify the risk of an economic downturn due to overseas economic uncertainties and volatility in the financial and capital markets. - FY2017-Q3RestatedAnnual report
「Meanwhile, the outlook remained uncertain due to overseas economic uncertainties, including developments in the financial markets following the US presidential election and the UK's withdrawal from the EU, as well as volatility in the financial and capital markets.」
The disclosure continues to identify overseas economic uncertainties and volatility in the financial and capital markets as sources of uncertainty about the outlook. - FY2017-Q2RestatedAnnual report
「Meanwhile, the outlook remained uncertain due to overseas economic uncertainties, including the UK's withdrawal from the EU, and volatility in the financial and capital markets.」
The disclosure continues to identify previously recognized sources of uncertainty in the economic environment, including overseas economic uncertainties and volatility in the financial and capital markets. - FY2016First statedAnnual report
「The company tends to be significantly affected by employment conditions, land price trends, interest rate movements, changes in housing tax policy, and other factors.」
The company stated that deterioration in economic conditions, employment, interest rates, and tax policy could affect business performance and financial condition as the proportion of homes purchased for owner-occupation increased.