DOI: 10.5176/2425-0112_UPPD15.27
Authors: Takeshi So and Yuta Arai
Abstract:This study is the first large-scale quantitative analysis of private rental housing rent arrears in Japan. The study data are from the Leasing Information Communication Center (LICC), which operates a private rental housing rent arrears information database. There are 728 759 data items used in this study, which is the largest scale with the smallest bias. This study aims to provide analysis results required for the discussion of a housing safety net and social loss due to rent arrears. We define new indicators of rent arrears and analyze them. The main findings are as follows. First, the rent arrears rate is about 3{6e6090cdd558c53a8bc18225ef4499fead9160abd3419ad4f137e902b483c465}, and in particular, long-term rent arrears are a serious issue for lessors. Second, 0.73{6e6090cdd558c53a8bc18225ef4499fead9160abd3419ad4f137e902b483c465} of contracts for long-term rent arrears account for 67{6e6090cdd558c53a8bc18225ef4499fead9160abd3419ad4f137e902b483c465} of the total loss. Small lessors cannot always accept loss of long-term rent arrears. Third, social loss due to rent arrears is estimated to be about 68.3 billion yen in Japan. Serious rent arrears do not occur very infrequently, but bring great loss to lessors once they arise. Small-scale lessors are affected more by rent arrears than others. Rent arrears are a social problem that must be solved in Japan.
Keywords: private rental housing, rent arrears, housing safety net, credit information
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