FX.co ★ Japan Housing Starts Rebound More than Estimated

Japan’s housing starts jumped 33.9% year-on-year in May 2026, a sharp acceleration from the 11.4% increase recorded in April and the second consecutive month of growth. This was the fastest expansion since March 2025 and exceeded market expectations of a 31.8% rise. The upturn was broadly based, with gains across most categories: owner-occupied homes climbed 31.8% (vs 19.5% in April), rental housing rose 33.3% (vs 17.3%), built-for-sale units surged 39.2% (vs 3.4%), and two-by-four homes increased 24.8% (though slower than April’s 64.8%). In contrast, prefabricated housing declined 3.4%, reversing an 11.1% gain in the previous month.