👋👋 Good morning real estate watchers! Today, we are going to talk about...

1. Imagine inheriting a house in rural Japan and thinking, ‘This is my ticket to paradise.’ Then you arrive to find it’s not a house—it’s a glorified barn with walls made of paper and regret. But hey, free is free, right?

2. Fasten your seat belts; we’ve got a return-to-work incentive for you like no other.

3. Grant Cardone launched a Bitcoin real estate fund, because why not stabilize one volatile market with another? It’s like using a flamethrower to fix a leaky faucet—bold, risky, and undeniably entertaining.

Let’s go!

TOP STORY

FREE HOMES

If the idea of owning a house for free sounds too good to be true, welcome to Japan, where the akiya phenomenon—a vast inventory of abandoned houses—has sparked global curiosity.

They say owning an akiya is about ‘embracing rural life.’ Translation: you now live with spiders the size of your fist, a toilet that doubles as an ancient curse, and neighbors who expect you to join their weekly weed-cutting parties.

You didn’t sign up for this, but now you can’t escape.

At first glance, it’s a dream come true for aspiring homeowners. Dig a little deeper, though, and the truth emerges: these “free” houses often come with a price tag, not just in yen but in sweat equity, patience, and cultural adaptation.

Akiya by the Numbers

Japan’s housing surplus is staggering. According to the most recent government data, over 8.5 million homes—or 13% of the country’s total housing stock—are classified as akiya (vacant homes). A combination of urban migration, an aging population, and shrinking family sizes drives the trend. These factors have left rural areas dotted with empty homes, many of which have been abandoned by heirs who would rather write them off than deal with maintenance, taxes, or renovation costs.

In an effort to combat this problem, municipalities across Japan have launched Akiya Banks, an online platform that lists vacant homes for sale or even for free. The goal? To revitalize struggling rural communities and attract new residents willing to take on the challenges of home ownership in the countryside.

What’s the Catch?

While the idea of a free house might make you want to pack your bags, the reality is more nuanced. Most akiya properties require substantial renovation to meet modern living standards. “Think of it like buying a ‘fixer-upper’ on steroids,” quips Anton Wormann, author of Free Houses in Japan: The True Story of How I Make Money DIY Renovating Abandoned Homes. “You’re not just redoing the kitchen; you’re tackling structural repairs, electrical rewiring, and maybe even a new roof.”

The costs add up. Renovating a dilapidated home can easily exceed $30,000, depending on the extent of the damage. And that’s before considering legal fees, property taxes, and ongoing maintenance. For many, the dream of owning an akiya morphs into a costly and time-consuming project.

A Lesson in Demographics

Japan’s free house phenomenon isn’t just about real estate—it’s a demographic cautionary tale. The nation’s population has been declining since 2010, with the total number of residents shrinking by nearly 3 million. Meanwhile, younger generations gravitate toward cities, leaving rural areas with a dwindling and aging population.

“The akiya problem is symptomatic of deeper structural issues,” says Tokyo-based urban planner Ayumi Tanaka. “It’s not just about houses sitting empty; it’s about communities losing their lifeblood.”

Could Japan’s approach hold lessons for other nations grappling with housing challenges? The United States, for example, has seen its own share of housing surpluses in post-industrial towns, while parts of Europe face similar struggles in depopulated rural areas. Japan’s akiya banks demonstrate the potential for creative solutions but also underline the importance of tackling root causes, such as urban migration and declining birth rates.

A Cultural Shift

For those willing to embrace rural life, the rewards go beyond a roof over your head. Many communities welcome newcomers with open arms—provided they’re ready to integrate, contribute, and respect local customs. It’s less about owning a house and more about becoming part of a village.

As Wormann puts it: “You’re not just inheriting a property; you’re inheriting a way of life. If you’re ready for that, it can be incredibly fulfilling.”

Japan’s akiya phenomenon offers a fascinating glimpse into the complexities of housing policy, demographic shifts, and cultural adaptation. For some, these homes represent a unique opportunity to build a new life. For others, they’re a reminder that even free houses have strings attached.

As the old adage goes: If it seems too good to be true, it probably is. In Japan’s case, the akiya might not cost you a yen upfront—but it’ll demand plenty of your time, effort, and a willingness to embrace the quirks of rural life.

SNIPPETS

1️⃣ Return to WoooooOOORRRAHHHHK! The Great Exhibition, a creative studio in Stockholm, has installed a 60-metre indoor office roller coaster called The Frontal Lobe. This unique addition to their workspace symbolizes the company's shift towards creating unexpected experiences and physical installations, moving away from technology-driven content. The roller coaster, which took over a year to design and build, is open to the public and serves as a statement against the perceived threat of technology to creativity in the industry. The studio's founder, Petter Kukacka, emphasizes the importance of creating strong memories and genuine experiences in their creative approach. (Creative Boom)

2️⃣ Home Lease Squeeze: CoreLogic's latest report reveals a significant slowdown in single-family home rent growth across the United States, including major rental markets. October data shows the annual growth rate dropping to 1.7%, its lowest point since June 2020 and well below the decade-long average of 3%. This deceleration is evident in both annual and monthly rate increases, indicating a potential shift in the rental market landscape that could impact landlords and tenants alike. (Globe St)

3️⃣ Rent Control Bites Back: Wall Street landlords who previously favored Montgomery and Prince George's counties in Maryland are now reconsidering their investments due to new rent control laws. The counties have implemented strict limits on rent increases, capping them at either 6% or 3% plus inflation, whichever is lower. This change has significantly impacted the attractiveness of these suburban properties for institutional investors, who had long viewed the area's steady stream of federal employees as a reliable source of rental income. (WSJ)

4️⃣ Not-So-Sweet Home: The U.S. homeless population has risen dramatically in 2024, with over 771,800 people living without housing, an 18.1% increase from 2023. Federal officials attribute this surge to rising housing costs, an influx of migrants, and natural disasters. Despite progress in reducing veteran homelessness, which dropped by 7.5% from 2023 to 2024, the overall crisis continues to worsen. Experts emphasize the need for increased investment in affordable housing and strategies to keep people in their homes, highlighting the success of veteran-specific resources as a potential model for addressing the broader homelessness issue. (USA Today)

5️⃣ Crypto Meets Concrete: Property mogul Grant Cardone has launched a groundbreaking $87.5 million bitcoin real estate fund on Florida's Space Coast, combining cryptocurrency and property investments. The fund aims to stabilize the volatile crypto market by balancing it with steady cash flow from 300 residential units. Cardone will invest $15 million in Bitcoin and $72.5 million in real estate, with plans to reinvest generated cash flow to acquire an additional $14 million in Bitcoin over 48 months. (Realtor.com)

6️⃣ Apartment Market's Supply: The apartment market in 2025 is expected to be primarily influenced by supply dynamics. Initially, an abundance of supply will likely lead to concessions for renters in high-supply markets, with operators focusing on retention to mitigate costs. However, as economic challenges impact developers, supply is anticipated to decrease, potentially resulting in housing shortages in some metro areas beyond 2025. Rental rate growth is projected to be modest in Sun Belt regions due to ongoing supply absorption, while lower-supply metro areas may experience rent growth comparable to the 2010s. (RealPage)

7️⃣ Hot Streak: According to the November CoStar Commercial Repeat Sale Indices report, U.S. commercial property prices are experiencing a positive trend not seen since 2022. The value-weighted U.S. composite index, which measures high-dollar trades in major cities, rose 1.3% over October, marking the fourth consecutive monthly increase. While still down 2.5% year-over-year, the rate of decline is decelerating. (CoStar)

8️⃣ Plastic Meltdown: Credit card defaults in the US have reached their highest level since the 2008 financial crisis, with lenders writing off $46 billion in seriously delinquent loan balances in the first nine months of 2024. This surge in defaults, up 50% from the previous year, indicates a growing financial strain on lower-income consumers after years of high inflation and elevated borrowing costs. (FT)