Japan stands out for its impressive pace of housebuilding, with the housing stock in Tokyo tripling in size over the past five decades. This growth can be attributed to the government’s centralized control over zoning and building regulations, which have been relaxed since the burst of the late-1980s asset bubble.
In contrast, Australia faces a housing affordability crisis due to restrictive planning rules and a lack of medium-density housing. The politics of land-use planning, influenced by older homeowners, hinder the country’s ability to meet increasing housing demands.
While Japan boasts abundant and affordable housing, Australia grapples with rising prices and rents. The Yimby movement in Australia advocates for a Japanese-style approach to housing policy to address supply constraints and improve affordability.
Despite the challenges, some Australian politicians are taking steps to combat Nimbyism and increase housing supply. The contrasting housing policies between Japan and Australia highlight the importance of effective urban planning in addressing housing needs.
Nicholas Spiro, a partner at Lauressa Advisory, reflects on the differences between Japan and Australia’s housing policies.