Housing market contraction and price increases driven by regional population decline, rising land prices and labor shortages
First written in FY2019. 7 of 12 entries say "Worsened", first in FY2020-Q3. Latest entry: FY2026-H1.
Avantia moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 12 of 17 companies on the "Worse" side.
0 other companies' latest entry also says "Softened".
- FY2026-H1SoftenedAnnual report
「In the housing and real estate industry, actual-demand purchasing sentiment, particularly among first-time buyers, remained cautious due to persistently high home prices resulting from rising land prices and construction costs, as well as higher consumer prices and mortgage rates. At the same time, purchasing activity showed signs of recovery in some regions and price ranges, supported by the continued strong preference for homeownership and expectations for future income as wage increases become established.」
Although weak sentiment toward home purchases due to rising housing prices, costs and interest rates continues, purchasing activity has begun to recover in some regions and price bands, supported by a preference for homeownership and expectations for income growth. - FY2025-H1RestatedAnnual report
「In the housing and real estate industry, sentiment among end-user buyers toward purchasing homes remains weak against a backdrop of persistently high home prices resulting from rising land prices and construction costs, as well as rising consumer prices. Uncertainty also continues regarding mortgage rate trends and the outlook for income conditions.」
The company continues to indicate that actual-demand buyers have weak sentiment toward home purchases amid high housing prices, rising prices, and uncertainty over mortgage rates and the income environment. - FY2024-Q3RestatedAnnual report
「In particular, in the housing and real estate industries, concerns about rising mortgage rates are intensifying amid continued pressure for higher housing prices. Sentiment toward home purchases among actual-demand buyers, primarily first-time buyers, has remained depressed for an extended period, and the business environment, including the outlook ahead, remains extremely challenging.」
The company continues to recognize that sentiment toward home purchases among actual-demand buyers, primarily first-time buyers, has remained depressed for an extended period due to pressure for higher housing prices and concerns about rising mortgage rates. - FY2024-Q2WorsenedAnnual report
「In the housing and real estate industry, sentiment toward home purchases among actual-demand buyers, particularly first-time buyers, has remained weak. In addition, concerns about rising mortgage rates have recently intensified, and the extremely challenging business environment is expected to continue, including in the outlook ahead.」
Sentiment toward home purchases among first-time buyers remains depressed, and the difficult environment surrounding the housing market continues amid concerns about rising mortgage rates. - FY2024-Q1WorsenedAnnual report
「In the housing and real estate industry, demand for detached homes remains weak, while higher land and construction-material prices are driving up home prices. Long-term interest rates are also on an upward trend, making the business environment increasingly challenging.」
Weak demand for detached homes has persisted, and pressure on the housing market has increased as the company has also identified rising long-term interest rates in addition to higher housing prices caused by soaring land prices and construction material costs. - FY2023WorsenedAnnual report
「Sentiment toward home purchases, particularly among first-time buyers, has remained depressed amid high land prices, rising housing prices due to higher material and labor costs, rapid inflation and uncertainty about the outlook for long-term interest rates.」
In addition to concerns about rising land and construction costs and a shrinking housing market, inflation and uncertainty about long-term interest rates added to the pressure on the housing market. - FY2023-Q1WorsenedAnnual report
「In the housing and real estate industries, demand for detached homes remains relatively resilient, but consumer sentiment toward home purchases is beginning to weaken as housing prices rise and essential goods and energy costs continue to increase, making the business environment increasingly challenging.」
The company stated that rising housing prices, essential-goods prices and energy costs are beginning to weaken sentiment toward home purchases, and that the housing business environment is becoming increasingly challenging. - FY2022-Q3WorsenedAnnual report
「In the housing and real estate industries, persistent pressure is pushing up housing prices due to high land prices and rising construction material costs. The company must pay increasing attention to future price trends and the impact on consumer sentiment toward home purchases.」
The company stated that persistent pressure to raise housing prices due to high land prices and construction material costs is continuing, and has heightened its vigilance regarding price trends and the impact on sentiment toward home purchases. - FY2022-Q1RestatedAnnual report
「In the real estate industry, housing demand has remained firm due to government support programs for home purchases and the low-interest-rate environment. However, close attention remains necessary because of concerns about a resurgence of COVID-19 infections and rising land prices and construction costs.」
While stating that housing demand remains firm, the company continues to identify concerns about a resurgence of infections and rising land prices and construction costs as risks to the housing business environment. - FY2020WorsenedAnnual report
「A contraction in the housing market due to a decline in the number of households is a concern. In addition, higher land prices and rising labor costs due to labor shortages are affecting new-home prices. Furthermore, given the uncertain outlook due partly to the impact of the COVID-19 pandemic since 2020, the company expects difficult conditions to continue.」
The company identified, in addition to a shrinking housing market and rising land and labor costs, uncertainty about the outlook caused by COVID-19, and stated that the challenging environment for the housing business is expected to continue. - FY2020-Q3WorsenedAnnual report
「The business environment is becoming increasingly challenging, with construction costs rising, construction labor in short supply and the number of new housing starts trending downward.」
In addition to the previously identified structural risks related to regional populations, land prices and labor shortages, the company explicitly identified rising construction costs and declining housing starts, indicating mounting pressure on the housing market and prices. - FY2019First statedAnnual report
「A contraction in the housing market due to declines in regional populations and the number of households is a concern. In addition, population concentration in metropolitan areas, higher land prices and rising labor costs due to labor shortages are having a significant impact on new-home prices.」
The company presented, for the first time, the combined risks of regional population and household declines, population concentration in metropolitan areas, higher land prices and rising labor costs due to labor shortages as structural risks affecting the housing market and new-home prices.