AI Data Insight

In 2025, the contribution of Japan's private residential investment to GDP remained at -0.1%, unchanged from 2024, indicating that the housing market has been a drag on the economy for two consecutive years. In addition to construction costs pushing new home prices to historical highs, the Bank of Japan (BOJ) ended negative interest rates and raised rates consecutively to 0.75%, significantly cooling home buying demand and housing start momentum.

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