What a Strengthening Yen Means for Buying a House in Japan

I’m not an economist, and to be honest, predictions about currency markets are all over the place. So, your guess is as good as mine. But here’s what I tell my clients — most of whom are looking to buy houses in Japan for somewhere between 2 to 5 million yen.

Even if the yen strengthens to 100:1 USD, which is roughly where it’s hovered over the past 30 years, houses in Japan are still insanely cheap. Let’s break that down: right now, a 5 million yen house costs about $35,038 USD. If the yen strengthens to 100:1, that same house would cost $50,000 USD. Sure, that’s a noticeable difference, but it doesn’t really change the broader picture of investing in Japanese real estate.

Why? Because if the yen strengthens, you’re also earning in yen. So let’s say you’re using your home as a short-term rental and charging 30,000 yen a night — that’s around $210 USD today. If the yen goes to 100:1, your 30,000 yen a night is now $300 USD. You’ve basically got a built-in hedge against currency fluctuation if you're looking at these properties as investments.

Now, some people argue that a stronger yen might make Japan a less attractive tourist destination, but I’m not so sure. Japan is still relatively affordable compared to much of the world. And especially when it comes to ski properties in Japan, I don’t think we’ve even scratched the surface of what tourism demand could look like.

Let’s be real — for Japan to match the cost of skiing in the U.S. or Canada, the yen would have to strengthen to something like 25:1, and that seems wildly unrealistic. So if you’re thinking about ski rental investments in Japan, a stronger yen really doesn’t change the math all that much.

If you're looking at long-term rental properties in Japan, you’re going to be renting to Japanese tenants, who are paying in yen too — so again, the currency fluctuation doesn’t matter much there either.

Now, if you're just looking to buy a vacation home in Japan or that dream countryside getaway because you love the country (and who doesn’t?), then yes, a stronger yen might change your out-of-pocket costs a little. But even then, I still think Japanese homes are one of the best deals in global real estate right now.

And hey — maybe the yen won’t continue to strengthen. Maybe we’ll be living in a 150:1 world for a while. Who knows? But whether you're looking at this as a lifestyle move, a vacation home, or an income-generating rental, buying property in Japan is still an incredible opportunity.

Like I said — your guess is as good as mine

Here's a summary about Yen exchange rates today from today ww.Fxstreet.com :

“Japanese Yen bulls might refrain from placing fresh bets amid receding safe-haven demand

The global risk sentiment gets a strong boost after US Treasury Secretary Scott Bessent said at a private investor summit that the tit-for-tat tariff war between the US and China would de-escalate soon. Later, White House spokeswoman Karoline Leavitt told reporters that the Trump administration is setting the stage for a deal. This, in turn, contributes to improving investors' appetite for riskier assets and driving flows away from perceived safe-haven assets, including the Japanese Yen.

Meanwhile, US President Donald Trump ruled out the possibility of taking the unprecedented step of firing Federal Reserve Chair Jerome Powell before the expiry of his term in May 2026. This, in turn, triggers a goodish US Dollar recovery from a three-year low, which assists the USD/JPY pair to attract some follow-through buyers during the Asian session on Wednesday. The USD move up, however, runs out of steam amid the prospects for more aggressive policy easing by the Fed.”

It seems as if they are predicting the Yen might have reached its limit on Appreciation for now which is good news. But who knows. I wish we had a crystal ball 😊

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