Blog
5 min read

The Future of Rural Japan

Written by
Derek Cirillo
Published on
July 17, 2026

— Hey guys, quick plug before we start:

First, something serious: Our Otaru Investment Guide & Myoko Investment Guide. We spent half a year on these, they are packed with data and everything you need if you’re considering buying a ski home, in my two favorite towns.

Second, something silly: The YukiHomes Beanie. If you want to look as dumb as me, hit the preorder link, shipping Summer 2026, only making 50 because we are not sure how many people actually want them, so they will be limited. —

No matter what you do in life, you’ll have haters. I think haters are universal.

When it comes to our business, the criticism usually falls into the same buckets: gentrification, colonialism (which makes no sense), and exploitation.

And look, this is a business. We need to make money. But that doesn’t automatically make it exploitative. I genuinely believe what we’re doing is a net positive for Japanese society.

But let’s entertain the argument.

If the Japanese government banned all foreigners from buying homes tomorrow… what would the future of rural Japan actually look like?

Because we see it every single day and it’s not pretty.

There simply aren’t enough Japanese buyers to absorb and restore the number of vacant homes out there. That’s not an opinion, that’s demographic reality. So what happens?

These homes don’t just sit quietly. They collapse.

Slowly, month by month, rural towns fill with empty, deteriorating houses. What used to be neighborhoods become stretches of silence and decay. And we’re not talking about a few homes here and there, there are places trending toward 30%, 40%, even 50% vacancy.

What does a town feel like when half the homes are abandoned?

It’s hard to imagine anything thriving in that environment.

Small businesses struggle. New ones don’t open. Investment disappears. And the entire place starts to feel… forgotten.

And that’s the part people miss.

These weren’t just “properties.” These were family homes.

Places where kids ran around during summer holidays. Where grandparents hosted dinners. Where friends gathered for board games that went too late into the night (I really have no idea how popular board games are in Japan, my American is showing here). But I do know for certain there was thousands of Karaoke songs sung in these places. There was life in these homes.

There were memories.

And now, many of them are turning into collapsed shells, dangerous, expensive to clean up, sometimes even hazardous with things like asbestos as they deteriorate.

Japan is the small business capital of the world. These towns once supported thousands of local shops, restaurants, craftsmen, and services.

But no young person is looking at a town full of decaying homes and thinking, “Yeah, I want to build my future here.”

The reality is this: without major intervention, the future of rural Japan is bleak.

And it’s honestly hard for me to imagine homeowners, locals, and small business owners being upset at the idea of foreigners coming in, restoring these homes, and bringing life back into these places.

Now, of course, I haven’t spoken to every rural Japanese resident. I’m just one person with my own experiences.

But from what I’ve seen, those experiences support what I’m saying.

Locals are happy to see enthusiastic, younger energy, regardless of race, color, or background, coming into their towns and breathing new life back into them.

So I’ll ask the people who are against foreign buyers.

If foreigners can’t buy and restore these homes… what’s the alternative?

Because the government can’t realistically clean this up at scale. The problem is too big, too widespread, and growing every year.

From what we see on the ground, foreigners aren’t the problem.

They might actually be one of the only viable solutions.

Curious what you guys think.

Browse opportunities yourself: Check out current listings at Nipponhomes.com

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This content is for informational and educational purposes only and reflects my personal opinions and experience. I am not a licensed financial advisor, tax advisor, or attorney. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.

Derek Cirillo
July 6, 2026

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Our team

Meet the founders.

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Derek Cirillo
Co-founder

Derek has been working in the Airbnb space for the past 10+ years and recently purchased a home in Japan. He is excited to bring this investment opportunity to others in the States & abroad.

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Nick McLoota
Co-founder

Nick has a passion for adventure and has always dreamed of owning a property in Japan. His dreams finally came true when Derek brought him in on a deal of a lifetime in Hokkaido, Japan - one of Nick's favorite places on Earth.