A municipality that stopped supporting home construction is changing how you choose your home. Toyama City's shift from 'new construction subsidies to vacant house utilization' has quietly rewritten the rules of the housing market.

*All articles are currently available for free*

The fact that 'vacant houses are increasing' is something everyone already knows.

The vacant house problem has become something we hear about quite often in the last few years. You have surely seen reports at least once saying, 'Vacant houses are increasing all over Japan' or 'Abandoned houses are becoming a problem.' However, many people perceive this as a cleanup issue of 'how to dispose of old houses in the countryside.' As a distant story that has nothing to do with them. The policy shift Toyama City launched in fiscal year 2026 flips that perception on its head. This fiscal year, Toyama City abolished its subsidy system that supported the acquisition of newly built homes. Instead, it has significantly strengthened support for utilizing used homes and vacant houses. It stopped 'subsidies for people building homes' and switched to 'subsidies for people using existing homes.' This is not a story about 'cleaning up vacant houses.' It is a story about 'rewriting the rules of the housing market.' And this change affects everyone: those who own homes, those looking for homes, and those with families who have vacant houses.

Organizing the facts: What has changed?

Until now, Toyama City provided subsidies for the acquisition of new homes to encourage people to live in the city center or along streetcar lines. In fiscal year 2026, it abolished those new construction subsidies. Instead, support for the acquisition and renovation of used homes and vacant houses has been strengthened. There is an additional subsidy for child-rearing households, and further additions if they choose areas along public transport lines or in the city center. In the newly established 'Vacant House Utilization Support Project,' removal and renovation costs are also supported when acquiring and utilizing adjacent land together. It is easy to misunderstand this as 'budget cuts.' That is not the case. The total amount of support has not been reduced; the direction of the support has been changed. From subsidies for increasing to subsidies for recycling. This is not a contraction, but a transformation.

Why did this happen now? The answer lies in simple arithmetic. Even though the population is decreasing, if you continue to provide subsidies for new construction, the total number of houses will only increase. For every increase, a house where no one lives is created. Toyama City faced that contradiction honestly in the form of its budget...

The essence that many people overlook. This is not 'vacant house countermeasures'.

When people talk about vacant house countermeasures, it inevitably brings to mind an image of 'cleanup.' It is often thought of as a story about tearing down or cleaning up dilapidated houses. But what Toyama City is really trying to do is a little different. The core lies in 'getting the housing market moving.' Japan's used housing market is extremely thin compared to Western countries. Because the culture of 'if you buy a house, it should be new' is deeply rooted, used houses do not sell easily. Because they do not sell, owners are left with them. As a result of being left with them, they are abandoned. That is one of the structures behind the increase in vacant houses. Toyama City established incentives to support brokerage and expanded subsidies for acquisition and renovation as a design change to 'move a market that does not move.' It pushes buyers, gives real estate agents motivation, and creates an environment where houses are easily bought, sold, or rented. In other words, this is an intervention in the housing market. By having the municipality change the incentive structure of the market, people move, houses move, and the city is maintained. If you read this not as 'cleaning up vacant houses' but as 'redesigning the housing market,' the meaning of this policy becomes one step clearer.

A reversal of perspective: 'Cities that can use surplus houses are strong'.

Here, let's reverse our perspective a little. There is a view that 'many vacant houses = a declining city.' That is certainly one side of the truth. But from another angle, one can also see it as 'a city that can utilize existing housing stock = a city that can accept residents without incurring new costs.' To build a new house, you need land, construction costs, and infrastructure development. But if you utilize vacant houses, as long as you can promote circulation, you can attract people to existing housing. You can maintain the density of the city without spending money. In the world of housing policy, this way of thinking is called 'stock-oriented.' Instead of producing new things, you circulate what already exists. Japan's housing policy has long treated 'expansion of ownership' as proof of affluence, but Toyama City has switched that direction to 're-editing existing stock.' The strength of cities from now on will shift from 'how much new stuff can be built' to 'how wisely existing resources can be used.' Toyama City anticipated that idea in the form of its budget. In the second half, I will organize how this change connects to your own home selection in the form of concrete judgments. I will start with the case of 'if I were looking for a house today' and provide you with decision-making axes that you can use immediately after reading.

If you were looking for a house in Toyama City today, compare these 3 options.

From here, I will get into the specifics. Let's say you are looking for a home in Toyama City today. There are three main options. Building a new house, buying a used one, or renovating and using a vacant house. In the past, these three were compared on almost equal footing. But starting this fiscal year, that premise has changed. If you choose new construction, there are no longer any subsidies from Toyama City. You will have to cover all construction and land costs yourself or through a mortgage. Of course, you can use national mortgage tax breaks, but the support at the municipal level has disappeared. If you choose a used house, subsidies come into play. Especially if you choose an area near public transport lines or the city center, subsidies will be applied to acquisition and renovation costs. If you are a child-rearing household, there is an additional bonus. The standard of housing you can choose with the same budget will change. The same applies if you utilize a vacant house. If you acquire and use it together with adjacent land, removal and renovation costs are also covered. Depending on the conditions, this can be a significant cost reduction. In other words, in today's Toyama City, the presence or absence of support from the municipality is clearly divided depending on 'what you choose.' It is no longer about whether it is new or not, but the location and how you utilize it have become the axes of judgment.

Organizing judgments by case: Who benefits?

Let's organize this from the perspective of 'which category do I fall into?' For child-rearing households who want to live in the city center or along transit lines, very favorable conditions are in place. There is an additional subsidy, you can use public transport, and there is a possibility of entering an area with a well-equipped child-rearing environment at a relatively low cost. It is worth seriously considering the option of 'used + renovation.' For those who have inherited a vacant house from their parents or have a house that their parents are struggling to manage, there is a tailwind in the sense that it has become 'easier to dispose of.' By establishing a system to promote brokerage, properties that did not move before will become easier to move. The cost of making the decision to move has become lower than the cost of leaving it abandoned. For the younger generation who are about to start living alone or cohabiting, this is a phase where the option of renting or buying used properties becomes more realistic. While purchasing is a prerequisite to directly receive the benefits of the subsidy, if the circulation of used homes increases across the market as a whole, the options for renting may also expand. On the other hand, for those who 'just want a new house,' it has become more disadvantageous than before from the perspective of Toyama City's subsidies. However, the benefits of new construction such as quality, comfort, and earthquake resistance remain the same. It is just a matter of organizing your priorities knowing that there is no subsidy. This is not a question of which is correct, but a question of what you value.

What will happen in the next 5 years. Reading the next move of municipal policy.

Toyama City's move will likely become a leading case study. Population decline is not just a story for Toyama City. Akita, Yamagata, Shimane, Kochi... local cities across the country are facing the same structural problems. And the national government is also beginning to steer toward 'moving houses that do not move,' such as strengthening the Vacant House Special Measures Act and making real estate registration mandatory. What is likely to happen in the next 5 years is that the trend of 'from new construction preference to used home preference' will spread to other municipalities. With Toyama City setting a precedent, it will become easier to consider the same shift. Competition between municipalities may shift from 'where can you build a new house cheaply' to 'where can you design the utilization of used and vacant houses well.' Another thing to pay attention to is that the value of location will be reorganized. In cities where compact city policies continue, the induction of residents to public transport lines and city center areas will continue. If the policy works, it will be easier for people to gather and for housing to circulate in those areas. 'Where you choose' will be more directly linked to the ease of maintaining assets than before. A bright prospect is that the options for housing will increase. Where there was only one choice of new construction, options for subsidized used and renovated homes will be lined up. Price ranges and uses will also become diverse. This is especially a story that lowers the hurdle for the younger generation looking for a home for the first time.

An era where the value of a home is not determined by the building alone

Finally, I would like to talk about something a bit broader.
For a long time in Japan, 'building a new house' was proof of prosperity.
Both the parents' generation and the grandparents' generation lived with the common sense that if you buy a house, it should be a new one. They took out mortgages, built new homes, and called them 'assets'.

However, that view of assets is now quietly being updated.
The value of a home is no longer determined solely by the newness of the building.
Demographics, policy direction, location, and ease of circulation are all complexly intertwined. Even if it is a new build, if it is built in an area that people are leaving, it will be difficult to maintain.
Even if it is a pre-owned home, if it is located in an area where policies are concentrated, it will be easy to live in for a long time and easy to sell.

Toyama City's shift is a visualization of that change in the form of a 'budget'.
When the government declares, 'We place value here,' the market slowly moves in that direction as well.
This is not a threat.
Rather, it is a story of possibilities.
Those who can update how they choose their homes can get a head start on the rationality of the new era. When the binary choice of new versus pre-owned expands into a multiplication of location and utilization, the options actually become richer.
Whether you are looking for a home, thinking about what to do with your parents' house, or haven't decided anything yet, having your own 'criteria for judging a home' will be a strength in the coming era.

That is all for this story. Thank you for reading to the end. If you found it even slightly interesting, I would be happy if you could follow, like, or share. It is a great encouragement for the future. Thank you very much.