Japan offers families 1M yen to relocate from Tokyo to rural areas

Japan’s government is offering families 1 million yen (apx. $7,500) per child to move from Tokyo to other towns and villages with declining birth rates and aging populations. 

The program is part of Japan’s Infrastructure Development Plan for a Digital Garden City Nation, which aims to revive areas that are seeing a steep decline in birth rates and aging populations by bringing in new residents through digitalization. 

For the first time, Japan’s population fell last year. Japan’s population is expected to continue to plummet from 125 million residents today to 88 million inhabitants in 2065, according to government data. In 2021, there were only 811,604 births—the lowest number since records have been kept. 

To be part of the program, applicants must meet one of three conditions: get employment at a small or midsize company in the area they relocate to, be able to work remotely for their current company, or start a new business. 

Families who join the program, however, must live in their new homes for at least five years. If they move out before that time frame, they will have to return all of the money that was awarded to them. 

The recent offer, which will be introduced in April, is a 300% increase from the old measure introduced in 2019, which offered 300,000 yen per child, according to local media.

During Fiscal Year 2021, 1,184 families joined the relocation program, increasing from 290 families in 2020 and 71 in 2019, according to Nikkei Asia. Officials hope that more money will incentivize at least 10,000 to move to rural areas by 2027.