Japan’s housing starts rose 8.2% year-on-year in July 2026, a sharp slowdown from the 18.6% jump recorded in June. Even so, this was the fourth consecutive month of expansion and slightly exceeded market expectations for a 7.9% increase.
By segment, owner-occupied housing edged up just 0.4%, following a robust 15.7% rise in the previous month. Growth in rental housing also cooled markedly to 10.0% from 24.6%. In contrast, built-for-sale homes maintained solid momentum, with starts increasing 14.6% after a 14.2% gain in June.
On the downside, starts of two-by-four homes declined further, falling 8.5% after a 7.4% drop in June. Prefabricated housing starts also weakened, sliding 6.9% and reversing a 13.7% increase in the prior month.
