Housing Pathway Divergence in Japan's Insecure Economy

The housing system in post-war Japan has consistently driven the growth of the owner-occupied housing sector, where many people have followed a conventional life-course in terms of ascending the housing ladder towards homeownership. Since the 1990s, however, a more insecure economy combined with the reorientation of housing and social policies has led to divergence in people's housing pathways. The conservative nature of public policy has largely been maintained, advantaging middle-class family households in accessing homeownership. However, in response to economic stagnation and within the context of pervasive neo-liberalism, the government has moved sharply towards accentuating the role of the market in providing housing and mortgages. Neo-liberal policies have become more pronounced while conservative institutions have firmly been ingrained in Japan's post-war society. Conventional middle-class families, protected by conservative policies in moving up the housing ladder, have maintained their relatively advantageous positions in the market economy. Neo-liberal policy has especially affected the housing conditions of specific groups who have been beyond the protection of conservative institutions, i.e. unmarried individuals, low-income households and those in unstable employment. The combination of conservative and neo-liberal approaches in policy practices has thus had strong diverging effects on people's housing opportunities. This paper explores the fragmentation of housing paths in Japan's insecure economy with particular reference to transformations in housing and social policies. Keywords: homeownershiphousing affordabilityhousing policyhousing pathwayseconomic stagnationJapan Acknowledgements The micro-data from the Housing and Land Survey and the National Survey of Family Income and Expenditure were obtained with the permission of the Ministry of Internal Affairs and Communications via the Research Centre for Information and Statistics of Social Science, of the Institute of Economic Research at Hitotsubashi University.