The challenge
Big cities struggle to build enough homes to keep up with demand.
The case
Japan sets zoning at the national level with a small number of broad zones, and in most of them buildings that meet the rules can be built without lengthy local approval. Neighbors have little power to block projects. As a result, Tokyo has kept building on the order of a hundred thousand or more new homes a year for decades, and rents in the metro area have stayed broadly flat in real terms while its population grew, in contrast with cities such as London, New York and San Francisco. According to the Tokyo Metropolitan Government, construction began on 129,571 new homes in Tokyo in fiscal 2024, which ran from April 2024 to March 2025.
Why it worked
Predictable, by-right rules that don't let each project be blocked keep supply responsive to demand. Japan's low population growth and short building lifespans also play a role.
Sources
- Sorensen, A. (2002). The Making of Urban Japan: Cities and Planning from Edo to the Twenty-First Century. Routledge.
- Tokyo Metropolitan Government (2025). Housing construction statistics: March 2025, Q1 2025 and fiscal 2024 (住宅着工統計).
Spot an error or know a better source? Tell us