Anton Wormann, 32, has always had a passion for DIY projects and creating beautiful spaces. So, after discovering that his neighbor’s property was abandoned, he decided to buy it and bring it back to life.
Upon inspection, Wormann discovered the property had been vacant for about 10 years after its elderly owners died.
This property was one of 9 million “akiyas” – empty houses – across Japan, according to the official government data from 2023.
While many countries face a housing shortage, Japan sees something completely different – an oversupply problem.
From its bustling cities to its beautiful and lush countryside, these abandoned estates are scattered across Japan, and here’s the kicker—they cost just $10,000 a drink.
Abandoned houses of Japan
Japan’s unprecedented demographic crisis has resulted in millions of empty homes. The country’s population continues to fall as its fertility rate decreases to a record low 1.2 births per woman by 2023.
Meanwhile, Japan’s elderly population is growing rapidly with people aged 65 and over estimated to account for around 30% of the country’s total population by 2024 data.
Death rates they have overcome birth rates in Japan, contributing to abandoned properties. Some people, like Wormann, have recognized this trend as an opportunity to buy real estate cheaply and are trying to save beautiful Japanese architecture from being lost..
An “akiya” discovery.
Wormann, who grew up in Sweden and has lived in major cities such as Paris, London, Milan and New York for nearly a decade, fell in love with Japan when he visited in 2015 on a work trip.
After that visit, Wormann made it a point to return to the Asian country every year. “Every time I was going to leave, I never felt like I was ready to leave,” he said. He was in awe of the beautiful scenery, the delicious food and the culture in general.
“I really wanted to stay here and spend more time here. I really can’t put it into words, but it just resonated with me.” So, in October 2018, he took the leap of faith and moved to Japan.
Once he became more familiar with Japanese culture and language, Wormann discovered a great opportunity to buy “akiyas”, renovate them and turn them into beautiful short-term rental properties.
“I read some articles about it … and it fascinated me, but I never realized how big a problem, and also for me, how big an opportunity it was until I actually moved here, learned Japanese, and got integrated into society,” he said.
Wormann as a child explored ideas with his father for renovating old houses they came across and was always interested in such projects. Before discovering his neighbor’s house, he already had experience renovating several properties in Sweden and Japan.
“Making something beautiful takes time … and it becomes something that no one else can replicate,” he said. “I want to create something very, very good that you’re very proud of — that makes me very happy.”
The renovation process
After discovering the vacant property next door, Wormann was able to contact the owner’s children with the help of a neighbor.
Wormann bought the 86-year-old property for about 8 million yen (about $54,000), excluding closing costs and commissions, according to documents reviewed by CNBC Make It.
The property still had the belongings of its previous occupants, a common occurrence among abandoned properties in Japan. The house was infested with termites and needed major structural upgrades.
“I was definitely horrified … and I’ve only seen it from the outside, so I could only imagine what it looked like from the inside,” she said. “I expected it to be clean, empty [and] quite tiny, but it wasn’t like that.’
“There were a lot of uncertainties, but I liked the location, I liked the sunlight, I liked the size, and there’s nothing you can’t really fix if you have those things in place,” he said.
It took Wormann 15 months to renovate the property.
“When renovating in Tokyo, the pieces of land are so narrow, so it’s like you have to demolish a piece and then throw it away as you go, because if not, the renovation won’t go ahead,” he said.
“For demolition, rent a car, take it to the dump, come back,” and it was this rinse and repeat that had to go on throughout the months-long process.
Design choices for the home “came over time,” he said. “You feel where and how you want things to be. You feel the sunlight. You feel the space… What can you salvage from the original details?”
“All these little choices [came] from spending 1000 hours in this house,” he said.
Wormann spent a total of about 1,500 hours working on the house over about a year. “It blew my mind. I lived for this house for a year,” he said, and in total, he says he spent another 8 million yen (about $54,000) on the renovation.
In total, it cost about $110,000 to purchase and renovate the property. It has now become popular with tourists visiting Tokyo and costs around $500 a night Airbnb. Each month, it brings in about $11,000 in rental income, according to documents reviewed by CNBC Make It.
The project of passion became a business
What started for Wormann as a passion project is now turning into a sustainable business. The 32-year-old now owns eight properties in Japan, seven of which were once abandoned houses. He has completed renovations on three of the properties and is currently working on renovating four others.
With a lot of love and effort, these abandoned houses that may be considered “old” and dilapidated by some can be revived and turned into something beautiful once again, Wormann said.
“There are villages that are dying [in Japan] … I think, culturally, there are a lot of beautiful houses that will be lost.”
“There are a lot of things that were thriving, maybe 30, 35, 40 years ago, that are now being abandoned and forgotten and it’s exciting, but it’s also kind of sad,” he said. “But you can save them, you can save them,” he said.
Looking to get your money’s worth this fall? Sign up for CNBC’s new online course. We’ll teach you practical strategies to hack your budget, reduce your debt, and increase your wealth. Get started today to feel more confident and successful. Use code EARLYBIRD for an introductory 30% discount, which now extends through September 30, 2024, for the back-to-school season.
Plus, subscribe to CNBC Make It’s newsletter to get tips and tricks for success at work, with money and in life.