Japan housing finance: Mortgage trends and rental restoration rules

Recent data and consumer guidance in Japan highlight significant financial considerations for households regarding housing and rental agreements.

According to the 2025 Household Financial Behavior Survey by the Japan Financial Education Promotion Organization, households in their 50s face substantial mortgage burdens. For two-or-more-person households with remaining loans, the average balance is 11.17 million yen, with a median of 10 million yen. Nearly half of these households (49.6%) owe more than 10 million yen, and 20.2% have balances exceeding 20 million yen.

In the rental sector, disputes regarding restoration costs (genjo kaifuku) remain a concern. Guidelines from the Ministry of Land, Infrastructure, Transport and Tourism specify that restoration does not mean returning a property to a brand-new state. While tenants are responsible for damage caused by negligence, intentional acts, or excessive use—such as cigarette stains, pet damage, or large nail holes—they are generally not responsible for natural wear and tear or aging, which are typically covered by the rent.