Middle-Class Senior Housing, 23,300 Units Nationwide in Japan... "Saturation State" [Senior House]

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Elderly Housing Saturated... Price Competition Occurs

Deposit Equivalent to One or Two Months' Rent
Monthly Rent Similar to Average Pension of Elderly

Proposing Solutions to Polarized Han Elderly Housing Market

Grandmother Mio Fukumoto (90), who lives in the elderly care home 'Teresa Care Home' located in Kawasaki City, Kanagawa Prefecture, Japan, is resting in her room. Photo by Yujin Park

Keiko Tanaka, a 71-year-old grandmother living in Tokyo, Japan, starts her day by accessing the elderly housing portal 'Kaigo Home.' Since her husband passed away earlier this year, she has been feeling lonely in her empty house and is looking for senior housing. Tanaka said, "My eldest son introduced me to the website, and if you enter your desired location and cost, it searches according to your conditions," adding, "It also provides detailed information on whether there are any vacancies immediately and when tours are available."

According to data released by Japan's Ministry of Health, Labour and Welfare in September last year, there are a total of 56,692 elderly housing facilities across Japan. Of these, 41% (23,319) are for middle-class seniors. Japan, which entered a super-aged society about 20 years ahead of South Korea, established a housing foundation for middle-class elderly people early on. This is the path that the Korean senior housing market, currently polarized between 'top-tier economic power' and 'lowest-tier,' should follow.

Japan's senior housing market was also polarized in the past, but it changed as the number of late-stage elderly rapidly increased. In 2011, the government fully revised the Elderly Housing Support Act and implemented subsidy and tax support policies for private companies. They provided 10% support for construction costs and reduced acquisition and property taxes. Since then, housing for middle-class seniors has rapidly increased. Now, it has become so saturated that platforms like 'Kaigo Home' have emerged to provide information on senior housing status.

Housing for middle-class seniors includes 'service-provided elderly housing' and 'paid nursing homes.' Compared to other senior housing, these have the highest occupancy rates and popularity. The deposit is about one or two months' rent, and the monthly rent is similar to the average pension received by seniors. Subaru Fukumoto, CEO (40) of a senior housing facility in Kawasaki City, Japan, said, "As the supply of housing for middle-class seniors increased, natural price competition occurred in the market," adding, "Japanese seniors find it very easy to find a home that perfectly fits their health condition and economic capacity."