Japanese Home Builders Make Their Way Into US Housing Market

Asian-owned home builders are continuing to find opportunities to invest and grow in the U.S. housing market. Since 2016, housing companies from Asia have purchased 42 American home building businesses, according to investment banking services firm Whelan Advisory.

In particular, Japanese home building companies have expanded their presence across the country. As of 2024, Sekisui House, Sumitomo Forestry, and Daiwa House rank as the sixth, ninth, and sixteenth-largest home builders in the U.S., respectively.

Whelan Advisory suggests several factors driving the influx of Asian-owned companies in the U.S., including:

1. Financial strength and low-cost capital

Access to long-term, low-interest financing from Japan’s historically low-rate environment enables these buyers to execute accretive transactions and offer attractive valuations

2. Long-term orientation

With investment return targets focused on steady growth rather than short-term gains, these firms can underwrite transactions through full housing cycles – creating flexibility in deal structure and pricing

3. Relationship-driven partners

By prioritizing cultural alignment, management continuity, and local relationships, Japanese housing companies allow sellers to retain meaningful roles, preserve company legacies, and maintain operational autonomy post-close

4. Motivated buyers

Japan’s aging population, rapidly declining household formation, and slower GDP growth have made the U.S. housing market an attractive allocation of capital