FX.co ★ Japan Housing Starts Slump Eases in December, Signaling Possible Stabilization

Japan’s housing sector showed signs of stabilizing at the end of 2025, as the pace of decline in housing starts slowed sharply in December. Year-over-year housing starts fell 1.3% in December 2025, compared with an 8.5% drop in November 2025, according to data updated on 30 January 2026.

Both figures are based on year-over-year comparisons, measuring each month against the same month a year earlier. While construction activity is still contracting, the markedly smaller decline in December suggests that the downturn in Japan’s housing market may be losing momentum after a steeper fall in November.

Investors and policymakers are likely to watch upcoming releases closely to see whether December’s moderation proves to be the start of a more sustained stabilization in residential construction, or merely a temporary pause in a broader weakening trend.