I lived there in the 90’s but I was not as economically astute (not that I am now but slightly better than I was in the 90’s). IMO what’s happening is almost identical. In the 80’s and early-to-mid 90’s there was a bubble period not only in housing but in consumer spending in general. Many people had 2 or 3 cell phones and all kinds of blinking, shiny gadgets which gave rise to electronic towns the likes of Akihabara. Lots of Mercedes, BMWs, and even huge American autos started to appear. Divorce rates rose, birth rates fell, and many people left their jobs to pursue entrepreneurship and better pay.
All of Japan is smaller than 1/2 the size of California but the population is 3 times the state of California. As you might imagine, “they never make more land” was a popular argument for investing in real estate. Japan is a perfect example against this simplistic view.
One difference which struck me is that many Japanese companies have housing as a perk of the job. If you are married the company will help you pay rent or part of a mortgage. Many companies also own and operate dormitories where their single employees reside. I lived for free in one of those, it was like a shoe box.
Wiki has a brief excerpt about Japan’s recession here.
