Effect of Subsidies and Tax Deductions on Promoting the Construction of Long-Life Quality Houses in Japan

Abstract

Securing a quantity of houses for citizens has been the priority of housing policies in Japan. However, these policies shifted from quantity to quality in the 21st century, including the promotion of “long-life quality housing (LLQH)”, which contributes to a sustainable and healthy society for the residential sector. Since then, various policies have been introduced at the national and prefectural (local) levels to promote the construction of LLQH. Using panel data for 47 prefectures across seven years, this study aims to analyze the factors that Japanese households choose when constructing LLQH. Although various research on LLQH and similar housing exists, this study is the first attempt to empirically explore the factors that promote LLQH. We found that policy measures covering only LLQH were generally effective in promoting the construction of LLQH, and these policy measures were more effective than those covering both LLQH and other types of housing. National-level measures tended to be effective, whereas prefectural-level measures were not. Furthermore, although the effects of individual measures differed, the overall effects of policy measures were confirmed. In conclusion, providing economic incentives had a positive effect on promoting LLQH, and such measures were successful in achieving the intended purpose.