Small Business Resources, Business Advice and Forms from AllBusiness.com

Performance expectations and needs of the Japanese house consumer.

By Vidal, N.
Publication: Forest Products Journal
Date: Sunday, May 1 2005

Abstract

Despite the economic slowdown in Japan, the country remains a very important market for wood products exporting regions. However, events such as the Kobe earthquake have led to changes in building regulations and practices which, in turn, have impacted consumer requirements.

To better understand these changing consumer requirements, 362 consumers from the age group that purchases new houses were surveyed from 4 key urban regions in Japan during the summer of 2001. Of the 21 percent who expected to purchase or build a new house within 5 years, 72 percent expect to live in single-family detached housing larger than their current house and 55 percent expect to pay more than [yen]30 million. The majority (70%) expect a new house to last two generations (at least 50 yr.), a substantial increase over current house longevity (less than 30 yr.). After price, the most important considerations in purchasing a house were proximity to a train station, structural integrity, access to natural light, and security of the neighborhood, with actual house performance characteristics ranking relatively low. This sort of information, in addition to regional comparisons, can help wood producers in targeting products and creating promotional programs for the Japanese housing market.

**********

Over the past decade, Japan has experienced decreased population growth, a stagnant economy, and an aging population. These factors, along with increasing concerns regarding the safety of buildings in the wake of the Great Hanshin (Kobe) Earthquake of 1995, have led to both changing building regulations and changing consumer requirements. Much has been written about this evolution of building standards, but very little in the way of primary consumer research has been provided in the public arena. Some of the changing consumer requirements for housing were uncovered in a survey of 362 Japanese consumers conducted in 2001. The results reported here can be used by exporters to target their products toward meeting these new consumer demands.

Background and objectives

The Japanese residential construction sector is very attractive for any company involved in supplying wood-based building materials. Despite a reduction in housing starts in the mid 1990s, annual housing starts have surpassed 1.1 million annually for the past 5 years (JAWIC 2003). Approximately 45 percent of all new houses are built with wood structural members, a proportion that has been stable for the last 10 years. In addition, almost all houses use wood in architectural finish applications (Anonymous 1998, JAWIC 2003). Despite the attractiveness of the Japanese residential construction sector, there are serious economic and financial concerns with the overall Japanese economy. These concerns, along with increased global competition, have made Japan a much more challenging export target market. A better understanding of the changing consumer preferences for housing can serve to improve opportunities for wood products exporters.

There are two key factors that have contributed substantially to changing consumer preferences in housing. The first is the economic shift in Japan from a world leader in economic development to a perennial drag on the world economy due to repetitive recessions or flat growth (four official recessions since 1990) and domestic deflation (The Economist 2002b). The general economy of Japan is in a state of stagnation with a government deficit of 8 percent of Gross Domestic Product (GDP) and a gross public debt of 128 percent of GDP, up from 69 percent in 1990 (The Economist 2000). Prices have been falling since 1995, contributing to global concerns regarding deflation (The Economist 2003a). In the midst of this economic malaise, the residential construction industry has been in a state of flux due to extensive legal changes aimed at improving the overall quality of housing in Japan.

Related to this, a second factor that has contributed to changing consumer preferences is the substantial evolution in building regulations to increase the quality of new houses in Japan (Cohen and Gaston 2001). Structural changes that have taken place in the marketplace reflect the far-reaching impacts of these new legislative efforts, including changes to the requirements for loans from the Government Housing and Loan Corporation (GHLC), a revision of the Building Standards Law (BSL), and the Housing Quality Assurance Law (HQAL) passed in 2000 (Cohen and Gaston 2001, Cohen et al. 2001).

As part of a larger study in Japan, 362 consumers were surveyed in 2001. Information was collected regarding their housing plans and expectations to identify current and future market trends. A key objective was to identify current and future changes in consumer demand in Japan for housing performance. Following a discussion of the research methodology, the results for the following three objectives are presented: 1) characterize Japanese consumers who purchase houses; 2) identify their house performance expectations and requirements; and 3) determine the importance of various attributes in their house purchasing decisions.

Understanding the changing Japanese consumer of housing can help wood products export firms better position themselves to compete in the changing Japanese market for building materials and products.

Methods

The population for the consumer survey consisted of all potential homebuyers in Japan who were between 30 and 59 years of age and who lived in one of four major urban areas. The consumer population was stratified into this age group since it comprises the highest proportion of first-time homebuyers (Fuji Research Institute 1997). The study concentrated on major urban areas that represent over 50 percent of Japan's annual housing starts (Lampert and Ikehata 2000) and more than 60 percent of Japan's population (Japan Statistical Yearbook 2003). Table 1 shows the regions selected and their associated prefectures. Stratified random sampling based on regional population levels ensured a geographically representative sample shown by the regional comparison between respondents and the actual population also shown in Table 1.

The survey instrument was prepared in English and translated into Japanese using an iterative process with a panel of experts both in Canada and Japan to ensure accurate translation of the meaning and not just words. The questionnaire was designed to take into account differences in consumer behavior, decision-making processes, psychographics, lifestyle, and demographics (Malhotra 1999). A Japanese marketing research company personally administered the written survey at central locations in each region to ensure that respondents' answers were not influenced by the research sponsors (auspices bias) and that all questions were properly understood. Data were collected from 362 consumers between June 29 and July 22, 2001.

Results

Results are presented in three sections. The first presents general results on the respondents and housing in Japan. The second section presents results on housing preferences (performance expectations and requirements) as indicated by the respondents. The third section presents results relating to the importance of attributes when buying or building new houses.

Demographics and general housing characteristics

Eighty-seven percent of the respondents were married, 65 percent were female, and 88 percent were between 30 and 59 years in age. Most (76%) had some post-secondary school education and over half (52%) were in households where the employment of the primary wage earner was classified as professional, technical, or managerial.

Most of the 362 respondents (85%) lived with their spouse/partner and 73 percent lived with their children. There were two children per household, on average, and 17 percent of respondents lived with their elderly parents. It is interesting to note that, in all regions but Kanto, more than 10 percent of the respondents already live with their parents. This illustrates the recent trend towards multi-generational housing (three or more generations under the same roof) in Japan as a way to look after the elderly in a rapidly aging population.

Fifty-two percent of the respondents lived in apartments, 43 percent in detached houses, and 3 percent in townhouses, with the remaining 2 percent residing elsewhere. When each region is considered separately, Hokkaido (60%) and Kansai (49%) have the highest proportions of respondents living in detached houses instead of apartments (Table 2).

The majority of the 362 respondents (57%) lived in a home with a floor area of between 46 [m.sup.2] and 95 [m.sup.2] (Fig. 1). (1) Another 36 percent lived in houses larger than 95 [m.sup.2]. Hokkaido was the only region that differed, with two sizes accounting for 30 percent (each) of responses: areas of between 46 [m.sup.2] and 70 [m.sup.2], and 96 [m.sup.2] and 120 [m.sup.2].

Seventy-five respondents (21%) were planning to build/rebuild or buy a house in the next 5 years. For these respondents, the majority (72%) expect to purchase a detached house, while only 27 percent indicated a preference for an apartment. (2) Except for Kyushu, where there was an even split among respondents between detached houses and apartments, respondents in the other three regions showed a strong preference for detached homes (Table 2).

Of the respondents intending to build/rebuild or buy a house within 5 years, 47 percent considered the need for more space as the key reason for doing so (Fig. 2). Decay of current dwelling was the second most indicated reason for investing in a new home, at 18 percent of the responses. Regional responses were similar to the total responses for all regions, ranking these two as the top reasons for house replacement.

Generally, the respondents who were planning on building/rebuilding or buying a house in the next 5 years expected the average house size to increase. Almost a third (32%) were planning to build or purchase a house that was between 96 [m.sup.2] and 120 [m.sup.2], while 28 percent were planning on an area of between 71 [m.sup.2] and 95 [m.sup.2] (Fig. 1). There were substantial regional differences (Table 3). Respondents in Hokkaido and Kanto followed this response pattern regarding larger houses; however, in Kansai and Kyushu, respondents preferred smaller houses. Forty-three percent and 60 percent of the respondents in Kansai and Kyushu, respectively, stated that the area of their new house should be between 71 [m.sup.2] and 95 [m.sup.2].

Despite a decline in house prices in Japan, an almost equal number of respondents indicated that they expected to pay more than [yen]40 million ($CAN 533.000) (3) (28%) and between [yen]30 million and [yen]40 million (27%) for a new home. An additional 24 percent expected to pay between [yen]20 million and [yen]30 million and the remaining 21 percent expected to pay between [yen]20 million and [yen]30 million. Responses varied greatly among regions, with Hokkaido having the lowest expected price range; 62 percent of its respondents expected to pay between [yen]10.1 and [yen]20 million for a new house. Kanto had the highest expected price range; 39 percent of its respondents anticipated paying more than [yen]40 million for a new house (Table 4).

Housing performance expectations and requirements

Many of the questions regarding housing performance were based on the HQAL first implemented in 2001. This law established a voluntary system for comparing the performance of a new house against a set of standards in nine critical areas (Japan Lumber Journal 1999). Companies in Japan are currently using some or all of these standards in their promotional efforts. The nine performance characteristics are: structural performance, fire safety, durability, ease of maintenance, energy efficiency, light environment, acoustic insulation, indoor air quality, and access for the elderly and impaired (Cohen and Gaston 2001).

[FIGURE 1 OMITTED]

For the purposes of the survey, the nine performance indicators were collapsed into three categories of housing performance attributes: energy savings, durability/longevity, and barrier-free design for the elderly and the impaired. Respondents were then asked about the minimum performance levels that they would require in their new homes.

For the energy-saving attribute, respondents were asked about the location and thickness of their insulation, window requirements, and the need for airtight construction. The majority of respondents (59%) stated that they would require the ceiling and exterior insulation to be thick and 11 percent wanted it to be very thick. Most of the remaining 30 percent would accept moderate insulation. There were few regional differences. The majority of respondents required double sash windows (72%), with a small number (4%) requiring triple sash. The remaining 24 percent would be satisfied with single sash windows. While the majority (73%) required airtight construction, most interesting is the fact that a sizable minority (27%) preferred non-airtight construction, despite the official policies in Japan promoting airtight housing. This may be due to concerns regarding indoor air quality.

In the durability/longevity category, the majority of respondents (70%) indicated that they expected their house to last at least two generations (more than 50 yr.). This is much longer than the current average lifespan of houses in Japan, which is less than 30 years or only a single generation (the preference of only 13% of respondents). As previously stated, the main reason for building/purchasing a new house was lack of space, which is a design issue and not a performance issue. There was a sizable minority (17%) who had a minimum requirement for a three-generation house (more than 75 yr.). Expectations were highest in Hokkaido, where 23 percent of respondents expected a three-generation house, while only 12 percent did so in Kyushu (Table 5).

In the barrier-free design for the elderly and the impaired category, 72 percent of the respondents stated that they required daily living facilities (bedroom, toilet, and bathroom) located on the same floor and an additional 19 percent expected to have an elevator available. This means that 91 percent of the respondents expected easy movement between floors for the impaired and elderly. Only 9 percent would accept these amenities located on different floors without easy transport between floors. The majority (84%) required passages and entrances to be at least 1.1 m wide, with the remainder wanting them at least 0.75 m wide. Handrails were expected in the bedroom, stairs, corridors, bathrooms, and toilets by 71 percent of respondents. Only 2 percent expected no handrails and the remainder expected handrails in all rooms, stairs, and corridors. Half of the respondents required the bedroom for the elderly/impaired to be at least 9 [m.sup.2] in size and two-thirds required easy wheelchair access. Results were very similar across all regions.

Importance of attributes when buying/building a house

Respondents were asked to rank the three most important factors in deciding to purchase a house from a list that included the nine performance indicators and additional key decision factors related to house buying in Japan. The additional factors were chosen based on previous exploratory interviews and surveys in Japan on housing decisions (Cohen and Gaston 1998a, 1998b, 1998c). To facilitate comparisons, rankings were transformed into evaluation points by assigning three points to the most important factor, two points to the second most important factor, and one point to the third. While this is an arbitrary scale and does not allow for statistical analyses, it is useful for comparative purposes.

For all respondents, price range was considered the most important variable when purchasing/building a house (Fig. 3). Following price were a closely grouped set of factors, including proximity to a train station, structural integrity, access to natural light, and security of neighborhood. It is interesting to note that price and location were the most important criteria, a seemingly universal concern of house purchasers. It is also interesting to note the relatively low level of importance of some of the nine HQAL performance criteria (such as energy efficiency or indoor air quality) relative to factors that have little to do with the construction of the house (such as size of plot of land, neighborhood prestige, and ease of maintenance).

In Hokkaido, energy efficiency ranked very low despite the harsh winter climate, while access to natural light and size of house ranked very highly. In Kanto, proximity to a train station and structural integrity ranked very highly, while many of the environmental aspects were ranked relatively low. Results for Kansai were very similar to those of Kanto. However, in Kyushu, barrier-free design ranked higher than in the other regions.

Respondents were also presented with 29 statements pertaining to housing, house attributes, and general beliefs. They were asked to identify their level of agreement with each of the statements on a five-point Likert scale: 1 = strongly agree; 5 = strongly disagree. Responses were similar across all regions and respondents strongly agreed, on average, with the following:

* Preserving the environment is of the utmost importance to me.

* Current logging practices are a serious threat to the world's environment.

* The structural strength of the house is its most important feature.

* I will deal with barrier-free design when I grow older.

* I am aware of wood adhesive fumes and I am very worried about them.

* I prefer reading and working with natural light during the day.

* Noisy neighbors are a great annoyance.

A one-way analysis of variance with a Tamhane (4) post hoc test (alpha = 0.05) was conducted on all 29 statements. Results are shown in Table 6. The statements concerning two environmental concerns (environmental preservation and the threat of logging practices) had the strongest level of agreement. This was followed by agreement with statements about structural strength and the quality of living in the house (air quality, natural light, noise from neighbors and the street). Respondents were relatively unconcerned with noise between rooms in their own house, accessibility of the pipes, the sources of wood used in their house, or energy efficiency. While respondents were concerned about the strength of their house, they were not concerned that it could collapse due to earthquakes, which reflects confidence in current building standards.

Discussion

Despite a stagnant economy, little population growth, and financially strapped construction industries in Japan, the second largest economy in the world still builds approximately a half million wood houses a year. Japan is far from self sufficient in wood building materials and in 2002, imported over 12 million [m.sup.3] of logs and 8.5 million [m.sup.3] of lumber (JAWIC 2003). The majority of these wood imports are used in home construction, which is experiencing restructuring due to both the state of the economy and changing regulations. These factors are exacerbated by changes in consumer requirements for housing that create a derived demand for different types of wood products.

It is interesting to note that, in a survey of 275 Japanese consumers conducted in 1998, only 21.7 percent indicated that decay was the main reason for replacing their existing home (Cohen and Gaston 1998a). The short life span of a Japanese house (less than 30 yr.) appears to be more attributable to changing size and style requirements than either the durability or structural longevity of the house. However, consumers who were planning to build/rebuild/purchase a new home within the next 5 years expected to move into a larger home that will last twice as long as their current house (at least two generations, or 50 yr.). Since most houses are replaced due to style or size limitations and not due to structural or durability problems, it will be important for new houses to be both large and flexible enough to accommodate changing (and aging) families over several generations. This needs to be a new and important element in both building materials and secondary wood products destined for the Japanese market.

There is a movement toward the increased use of thick or very thick insulation and airtight houses. This, combined with increased longevity requirements, suggests a continuation of the shift toward very stable building materials such as kiln-dried lumber and engineered wood products. Proper moisture control through design, construction, and maintenance will become increasingly important. Lessons already learned in North America due to moisture problems in airtight houses can be transferred, along with building materials and systems, to provide solutions for Japanese builders.

Most respondents preferred a detached house and over half expected to pay over [yen]30 million for a new home (not including cost of land). However, there were regional differences that not only impact the types of housing built, but also the types of materials used. Respondents in Hokkaido expected to pay less for their homes, while those in Kyushu and Kanto expected to pay the most. This suggests that the higher priced building products should be targeted toward the Kyushu and Kanto regions. However, Hokkaido respondents did expect to build larger houses with a higher proportion of respondents (92%) favoring detached housing. This is most likely due to the increased availability of land on the relatively sparsely populated island of Hokkaido.

Respondents clearly indicated their price sensitivity by ranking price as the most important variable when purchasing a house. Given the sustained deflationary period in Japan, suppliers must recognize the need to maintain low prices or even decrease them. An alternative would be to increase the value to the end user through performance enhancements rather than through declining prices. Given the increasingly competitive nature of all import markets, currency exchange fluctuations between competing suppliers become all the more important in such a price sensitive market.

It is interesting to note that house prices in Japan have increased by only 15 percent in over 20 years from 1980 to 2001, with a decline of 3.6 percent in 2001 and another 4.8 percent in 2002 (The Economist 2002a, 2003b). (5) While prices for Japanese houses may seem high by North American standards, land makes up a large share of the price and the Land and Water Bureau, Ministry of Land, Infrastructure and Transport has reported that residential land prices declined between 1.6 and 4.1 percent annually since 1991 (Japan Statistical Yearbook 2003).

Building design, materials, and products that make a house more suitable for an aging population are becoming increasingly important. This provides additional opportunities for products such as wood handrails, heated flooring systems, wider pre-hung doors, easily accessible kitchen and bathroom cabinets, and non-skid wood floor systems, to name a few examples.

While the structural integrity and strength of a house were very important factors to consumers, previous research clearly indicated that consumers were not willing to pay a premium for these attributes, but rather expected these as standard performance characteristics (Cohen and Gaston 1998b, 1998c). Respondents indicated a preference for access to natural light, indicating opportunities for well-insulated windows that would be opaque, allowing for light to enter into the house while retaining privacy. However, most of the performance indicators from the HQAL ranked low compared to more universal variables like location, security, and size. Attitudinal results indicated high consumer interest in the environment, indoor environmental factors (e.g., air quality, noise, and light), and structural strength. These variables could be stressed in any promotional campaign to create comfort among Japanese consumers for specific building products.

While consumers indicated a strong concern with current logging practices, there was only moderate interest in knowing about the sources of the wood in their houses (Table 6). This reinforces the disconnect in Japan between general environmental concerns and their impact on actions. A previous study on Japanese homebuyer attitudes toward the environment found that concern with the environment decreased as consumers approached the signing of a construction contract (Trade Commissioner Service 2003).

Conclusion

Despite the generally gloomy performance of the Japanese economy in recent years, the residential construction sector remains robust, with the number of annual wood housing starts second only to the United States. That said, the decade-long stagnant economy has had an impact on both building regulations and customer requirements for homes in Japan. While the changing regulatory climate in Japan is well understood, little in the way of direct marketing research has been conducted to gauge the changing needs of the Japanese house buying consumer.

The results of this study show that many opportunities exist for wood products manufacturers, home builders, and building materials suppliers trying to enter or increase their share of the Japanese residential market. For example, the findings obtained here suggest that longevity and flexibility, as well as new concerns over price and performance, must be key components of any product or promotional package directed at Japanese house buyers. It is recommended that wood products manufacturers conduct ongoing market research in this important export market to further refine future product offerings and promotions and, ultimately, increase their market shares.

Table 1. -- Sample sizes of respondents by region and proportion of
total population. (a)

Region
(northernmost to                                    Sample size
southernmost)     Prefectures                       per region

Hokkaido          Hokkaido                           30 (8) (b)
Kanto             Tokyo, Saitama, Kanagawa, Chiba,  182 (50)
                    Gumma, Tochigi, Ibaraki
Kansai            Nara, Shiga, Kyoto, Osaka,         90 (25)
                    Hyogo, Wakayama
Kyushu            Fukuoka, Saga, Nagasaki, Oita,     60 (17)
                    Miyazaki, Kumamoto, Kagoshima
Total                                               362

Region            Actual percent
(northernmost to  of population
southernmost)     30 to 59 years
                   (%)

Hokkaido            7.2
Kanto              50.9
Kansai             25.8
Kyushu             16.0
Total             100.0

(a) Source: Japan Statistical Yearbook, 2003 Japan Census Statistics,
Statistics Bureau, Japan Statistical Association (1999).
(b) Values in parentheses are percent of total sample.

Table 2. -- Existing and planned dwelling type by region (proportion of
respondents). (a)

                Hokkaido     Kanto         Kansai       Kyushu
                n = 30 (13)  n = 182 (38)  n = 90 (14)  n = 60 (10)
                                         (%)

Apartment       33 (8)       59 (24)       43 (36)      53 (50)
Detached house  60 (92)      36 (74)       49 (64)      45 (50)
Townhouse        3 (0)        3 (0)         4 (0)        2 (0)
Other (b)        3 (0)        1 (3)         3 (0)        0 (0)

(a) Numbers in parentheses in the body of the table represent the
proportion of houses that respondents are planning to buy or build.
Example: of the 30 existing respondent dwellings in Hokkaido, 33 percent
are apartments; of the 13 planned dwellings, 8 percent are apartments.
(b) Two-generation house, 4-story building (owned), shared home,
heritage property.

Table 3. -- Sizes of planned new houses by region (proportion of
respondents).

                               Hokkaido  Kanto   Kansai  Kyushu
                               n = 13    n = 38  n = 14  n = 10
                                             (%)

Less than 45[m.sup.2]           8         0       0       0
Between 46 [m.sup.2] and 70    15         3       0      10
  [m.sup.2]
Between 71 [m.sup.2] and 95     0        24      43      60
  [m.sup.2]
Between 96 [m.sup.2] and 120   38        42      21       0
  [m.sup.2]
Between 121 [m.sup.2] and 145  23        21      21      10
  [m.sup.2]
Between 146 [m.sup.2] and 175  15         5       7       0
  [m.sup.2]
More than 175 [m.sup.2]         0         5       7      20

Table 4. -- Expected price ranges for new houses by region (proportion
of respondents).

                               Hokkaido  Kanto   Kansai  Kyushu
                               n = 13    n = 38  n = 14  n = 10
                                              (%)

Below [yen]10 million           0         0       0       0
[yen]10.01 to [yen]20 million  62        13       7      20
[yen]20.01 to [yen]30 million  23        24      36      10
[yen]30.01 to [yen]40 million  15        24      36      40
More than [yen]40 million       0        39      21      30

% of total respondents

Need more space                            47%
Decay of current dwelling                  18%
Job relocation                             10%
Other                                      10%
Sharing cost with family members            8%
Need new house floor plan                   8%

Figure 2. -- Reasons for building/rebuilding or purchasing houses.

Note: Table made from bar graph.

Table 5. -- Minimum requirements for the durability of new houses by
region (proportion of respondents).

                            Hokkaido  Kanto    Kansai  Kyushu
                            n = 30    n = 181  n = 90  n = 60
                                           (%)

One generation (25 yr.)     13        10       21      10
Two generations (50 yr.)    63        71       63      78
Three generations (75 yr.)  23        18       16      12

evaluation points

Price range                     394
Proximity to train station/bus  278
Structural integrity            272
Access to natural light         252
Security of the neighbourhood   228
Size of home/floor area         198
Durability                      106
Size of the plot of land         86
Prestige of neighbourhood        80
Ease of maintenance              65
Proximity to shopping            43
Barrier-free design              41
Indoor ventilation/air quality   35
Acoustic insulation              27
Proximity to schools             25
Exterior appearance/style        12
Energy efficiency                11
Access to central sewerage        6
Fire resistance                   6

Figure 3. -- Most important variables considered when purchasing/
building a house.

Note: Table made from bar graph.

Table 6. -- Results from ANOVA with Tamhane post hoc test (alpha = 0.05)
on level of agreement with attitudinal questions (1 = strongly agree and
5 = strongly disagree). Mean scores for each statement are ordered from
most to least agreeable in eight significantly different groups. (a)

                                                   Group number
                                               1     2     3     4

Preserving the environment is of the utmost
  importance.                                  1.50
Current logging practices are a serious
  threat to the environment.                   1.62  1.62
The structural strength of the house is its
  most important feature.                            1.75
I will deal with barrier-free design when I
  am older.                                          1.78
I am aware of wood adhesive fumes and I'm
  very worried.                                      1.80
I prefer reading and working with natural
  light in the day.                                  1.84  1.84
Noisy neighbors are a great annoyance.               1.88  1.88
Pipe repairs can be expensive and disruptive.        2.08  2.08  2.08
Every few years, I paint my house to prevent
  decay.                                                   2.21  2.21
I sometimes worry about the quality of the
  air my family breathes in my house.                      2.27  2.27
I will build my house to last for many
  generations.                                             2.33  2.33
I would definitely install fire alarms and
  smoke detectors.                                         2.33  2.33
I get very frustrated when I can hear noise
  coming from the street.                                  2.33  2.33
Fire-sprinklers are effective in putting out
  house fires.                                                   2.36
Having pipes and plumbing readily accessible
  saves a lot of time and money during
  repairs.                                                       2.37
I have a problem seeing with artificial
  lighting.                                                      2.41
My family discusses environmental issues
  regularly.
Homes should be 100 percent wheelchair
  accessible.
I care about the source of wood in my house.
Too many window openings can compromise my
  house's structural stability.
I worry about my house being destroyed by
  an earthquake.
I save money because my house is properly
  insulated.
Strong windstorms are frequent in my area.
The amount of money I could potentially save
  in heating costs is very small.
Plywood and other wood panels are a safety
  concern.
I care about how accessible my pipes and
  plumbing are.
I'm usually very concerned about my house
  burning.
I never hear noise coming from other rooms.
A heavy snowstorm could collapse my roof.

                                                   Group number
                                               5     6     7     8

Preserving the environment is of the utmost
  importance.
Current logging practices are a serious
  threat to the environment.
The structural strength of the house is its
  most important feature.
I will deal with barrier-free design when I
  am older.
I am aware of wood adhesive fumes and I'm
  very worried.
I prefer reading and working with natural
  light in the day.
Noisy neighbors are a great annoyance.
Pipe repairs can be expensive and disruptive.
Every few years. I paint my house to prevent
  decay.                                       2.21
I sometimes worry about the quality of the
  air my family breathes in my house.          2.27
I will build my house to last for many
  generations.                                 2.33
I would definitely install fire alarms and
  smoke detectors.                             2.33
I get very frustrated when I can hear noise
  coming from the street.                      2.33
Fire-sprinklers are effective in putting out
  house fires.                                 2.36
Having pipes and plumbing readily accessible
  saves a lot of time and money during
  repairs.                                     2.37
I have a problem seeing with artificial
  lighting.                                    2.41
My family discusses environmental issues
  regularly.                                   2.64
Homes should be 100 percent wheelchair
  accessible.                                  2.65
I care about the source of wood in my house.   2.65
Too many window openings can compromise my
  house's structural stability.                2.68
I worry about my house being destroyed by
  an earthquake.                               2.69
I save money because my house is properly
  insulated.                                         3.08
Strong windstorms are frequent in my area.           3.14  3.14
The amount of money I could potentially save
  in heating costs is very small.                    3.29  3.29
Plywood and other wood panels are a safety
  concern.                                           3.32  3.32
I care about how accessible my pipes and
  plumbing are.                                      3.36  3.36
I'm usually very concerned about my house
  burning.                                           3.41  3.41  3.41
I never hear noise coming from other rooms.                3.71  3.71
A heavy snowstorm could collapse my roof.                        3.98

(a) These post hoc results show that there were eight groups that were
statistically different from each other. Group membership is not
mutually exclusive. For example, while Group 1 is statistically
different from Group 2, item 2 belongs in each group.

(1) The traditional Japanese measure for housing is the tsubo which is equivalent to 3.26 [m.sup.2]. For this paper, all house sizes have been converted to metric measures, whereby 1 [m.sup.2] = 10.764 [ft.sup.2].

(2) This may indicate that the proportion of wood houses, which make up the vast majority of detached houses, may increase beyond the current level of 45 percent.

(3) An exchange rate of [yen]75 to $1 Canadian (current at the time of the survey) is used throughout this analysis.

(4) The Tamhane test was used because variances between the 29 statements were found to be unequal. Although one-way ANOVA is fairly robust to mild violations in the assumption of variance homogeneity (Kleinbaum et al. 1988), a recommended course of action for the post hoc multiple comparison of means is the Tamhane test (Tamhane 1979).

(5) Percentages are based on real and not nominal prices, meaning that they have been adjusted for inflation based on the consumer price index.

Literature cited

Anonymous. 1998. A quick look at housing in Japan. 4th ed. Building Center of Japan, Tokyo, Japan. 50 pp.

Cohen, D.H. and C. Gaston. 1998a. Japan's value added market: Wood product attributes and competition--attribute analysis, building systems. Forintek Canada Corp Rept. Prepared for the Province of British Columbia, Victoria, BC. Canada. 32 pp.

______ and ______. 1998b. Japan's value added market: Wood product attributes and competition--attribute analysis, building systems. Forintek Canada Corp Rept. Prepared for the Province of British Columbia, Victoria, BC, Canada. 32 pp.

______ and ______. 1998c. Japan's value added market: Wood product attributes and competition--attribute analysis, wood structural members. Forintek Canada Corp Rept. Prepared for the Province of British Columbia, Victoria, BC, Canada. 24 pp.

______ and ______. 2001. Trends and changes in Japanese building regulations. Canadian Mortgage and Housing Corp., Ottawa, ON, Canada. 35 pp.

______, I. Macdonald, and R.A. Kozak. 2001. The Japanese distribution system for finished building products: In transition. Prepared for The Province of British Columbia, Victoria, BC, Canada. 91 pp.

The Economist. 2000. Into the whirlwind. www.economist.com/displaystory.cfm?story_id=275247. Originally in the Jan. 20, 2002 print ed. 6 pp. Accessed June 30, 2003.

______. 2002a. Going through the roof. www.economist.com/PrinterFriendly.cfm? Story_ID=1057057. Originally in the March 28, 2002 print ed. 6 pp. Accessed June 30, 2003.

______. 2002b. The non-performing country. www.economist.com/displaystory.cfm? story_id=987746. Originally in the February 14, 2002 print ed. 6 pp. Accessed July 1, 2003

______. 2003a. Seeking the right medicine. www.economist.com/PrinterFriendly.cfm?Story_ID=1864972. Originally in the June 19, 2003 print ed. 3 pp. Accessed June 30, 2003.

______. 2003b. Hot property. www.economist.com/displaystory.cfm?story_id=2056927. Originally in the September 11, 2003 print ed. 1 p. Accessed September 27, 2003.

Fuji Research Institute. 1997. Chuchokiteki shiten kara mita jutaku chakko (Housing Starts from a Mid to Long-Term Point of View). Tokyo, Japan, 52 pp. (Original in Japanese, with a private English translation).

Japan Lumber Journal. 1999. "Housing big bang" what and how will change? (2) Housing Quality Assurance Law -1-. Japan Lumber J. 40(24):11.

Japan Statistical Yearbook. 2003. Change in land price by use and region. Statistical tables. Statistics Bureau, Ministry of Public Management, Home Affairs, Posts, and Telecommunications, Tokyo, Japan. Accessed July 1, 2003. www.stat.go.jp/english/data/nenkan/1431-17.htm.

Japan Wood Products Information and Research Center (JAWIC). 2003. Wood supply and demand information, May 2002, Tokyo, Japan. 16 pp.

Kleinbaum, D., L. Kupper, and K. Muller. 1988. Applied Regression Analysis and Other Multivariable Methods. PWS--Kent Publishing Co., Boston, MA. 718 pp.

Lampert, G. and S. Ikehata. 2000. Trends in the Japanese Housing Market. Publication NHA 2514. Canada Mortgage and Housing Corp., Ottawa, ON, Canada. 45 pp.

Malhotra, N. 1999. Marketing Research: An Applied Orientation. Prentice Hall, Upper Saddle River, NJ. 763 pp.

Tamhane, A. 1979. A comparison of procedures for multiple comparisons of means with unequal variances. J. of the Am. Statistical Assoc. 74(366):471-480.

Trade Commissioner Service. 2003. Housing--Market Brief--Japan, August 2003. Prepared by the Canadian Embassy, Tokyo, Japan. 7 pp.

D.H. Cohen*

R.A. Kozak*

N. Vidal

W. Spetic

R. Ide

The authors are, respectively, Associate Professors, Faculty of Forestry, Univ. of British Columbia, 2900-2424 Main Mall. Vancouver, BC Canada V6T 1Z4; PhD Students, Univ. of British Columbia; and Partner, Global Forest Partners LP, Brazil. The authors would like to acknowledge the support of Canadian Mortgage and Housing Corp. and Fuyu Soken (Winter Research Institute), Hokkaido, Japan. This paper was received for publication in December 2003. Article No. 9814.

*Forest Products Society Member.

In addition, make sure to read these articles: