Innovative Land Bank Models for Addressing Vacant Properties in Japan: A Case Study of Six Approaches

Abstract

In Japan, vacant houses are widely recognized as a significant societal challenge. At the same time, the problems associated with vacant lots and land with unknown ownership are escalating and are expected to worsen in the future. In response, community organizations such as NPOs (nonprofit organizations), neighborhood associations, and government agencies have been central in increasing efforts toward effectively utilizing and managing these vacant properties. This study analyzed six cases supported by the MLIT (Ministry of Land, Infrastructure, Transport and Tourism) under the Land Bank initiative, with two cases involving land readjustment and four involving temporary use. A detailed examination of these pilot efforts and their application methods clearly highlights the necessity of integrating land management with urban planning. Furthermore, it has been found that there are several challenges in the Land Bank initiative, including difficulties in assessing market value, ownership issues, and the need for broad coordination. These findings provide important implications for improving Japan’s management of vacant land and houses.

1. Introduction

Many cities worldwide face the common problem of vacant homes and unused land, a consequence of factors such as declining birth rates leading to population decreases. This increasing phenomenon is closely linked to changes in urban population structures, such as accelerated urbanization and aging populations, and to fluctuations in the real estate market and changes in economic policies. For example, although definitions of vacant homes vary by country, a 2024 report by the OECD [1] indicates that excluding seasonal and vacation homes, the proportion of vacant homes exceeds 12% of total housing in Spain, Japan, and Portugal. This highlights the unique challenges these countries face regarding vacant home issues.

According to Japan’s Housing and Land Survey [2], the national vacancy rate reached 13.8% in 2023. Compared to 2018, the number of vacant homes increased from 8.49 million to 9 million, and the vacancy rate rose from 7.6% in 1978 to 13.8% in 2023, nearly doubling over the past 45 years. This increase in vacant homes is closely linked to demographic trends in Japan. The population of Japan has been declining since peaking in 2008, mainly due to the continued low birth rate, making the issue of vacant homes more pronounced.

In rural areas, the proportion of the elderly population is increasing, and it is predicted that by 2050, about 20% of the national land will be uninhabited areas [3]. This aging trend particularly increases the proportion of single-person and elderly households, consequently changing housing demand. Also, with the decline in the working population, the number of households is decreasing, leading to a noticeable increase in vacant lots and homes. These structural changes are believed to lead to an overall decrease in land demand, particularly for residential and productive uses. According to a forecast by the Nomura Research Institute [4], the vacancy rate is expected to rise to about 25.3% by 2043. This reflects the specific implications of an aging population, household structure changes, and low land and housing market birth rates over the long term.

The increase in vacant homes poses significant problems for local communities and society, attracting the attention of policymakers. In November 2014, the Japanese government implemented the Special Measures Law for Vacant Houses to address this, strengthening measures against the problem. However, vacant houses, lots, and land with unknown owners remain insufficiently addressed, leaving a risk of neglect. As the number of properties with low market value increases, some owners feel constraints in management and consider options like selling for zero Japanese yen (hereinafter abbreviated as JPY) using the national treasury land attribution system or donating to local governments. In this context, Japanese researchers are advancing systematic studies on international vacant property measures, notably referencing the efforts of Genesee County’s Land Bank in the United States. This case involves the centralized management of properties acquired due to tax delinquency. The organization employs a triage process to evaluate the real estate’s location and physical condition, promoting usage aligned with urban planning [5,6,7,8].

Concerning such international examples, Japan has high expectations for practical solutions to the neglected property issue. Against this backdrop, with population decline and the increase in poorly managed land, land policy is undergoing significant changes. There is active domestic policy discussion regarding the introduction and use of Land Banks, which drive the development of new land policies. The necessity of utilizing Land Banks and enhancing their functions has been discussed, particularly in the 196th [9] and 208th [10] Land and Transport Committee sessions and the 204th Judicial Committee [11]. The 204th session debated using Land Banks and strengthening their role from the perspective of effective land use.

Additionally, in December 2019, the Land Policy Subcommittee of the National Land Council Planning Division published an interim summary to revise the Land Basic Law established during the bubble period and develop a “new comprehensive land policy” to address society’s declining population. As a short-term measure, it proposed building a community consultation system through cooperation between administration and professionals and setting up a system to share information about vacant lots and homes [12]. Furthermore, the efforts of Land Banks, which undertake functions like matching, coordinating, and managing on behalf of owners, are being advanced to promote the proper use and management of land and real estate. Moreover, in June 2024, the government’s key team of decision makers (cabinet) agreed on the “Basic Policy on Land” [13], which proposed further possibilities for matching and coordination to realize the appropriate use and management of land through Land Banks. It also advocated for the cultivation of mature Land Banks that assume land ownership rights and management functions, indicating a policy of further promoting the efficient use of land resources. Given this situation, the Land Bank initiative could be an effective management tool for Japan’s future. However, the potential of Land Banks as intensive managers of land and surplus properties has not yet been fully realized. Therefore, this study explored how Land Banks function as a mechanism for accepting problematic properties and land, identifying barriers during the dissemination process among exemplary organizations selected by the Ministry of Land, Infrastructure, Transport and Tourism (hereinafter abbreviated as MLIT) and exploring the feasibility of establishing the project. Specifically, the study focused on six exemplary organizations selected by the Land and Construction Industries Bureau of the MLIT in 2020. An empirical analysis was conducted through field surveys and interviews with the following objectives:

• Objective 1: Analyze each Land Bank case study’s organizational structure, career opportunities, and organizational form;
• Objective 2: Analyze each Land Bank case study’s project approach, implementation, and results;
• Objective 3: Evaluate the sustainability and limitations of each Land Bank project.

This thesis begins by analyzing the origins of Land Banks in Japan, followed by a review of the literature on Land Banks and an analysis of initiatives by the MLIT in Section 2.2. It further clarifies the research gaps and details the uniqueness of this study. Section 3 analyzes the approaches, subjects, and scope of Land Banks adopted by the MLIT in 2020. It also outlines the two approaches, land readjustment, and temporary use, focusing on six identified case areas. Section 4 and Section 5 constitute the core of the thesis. Section 4 analyzes two case studies that utilize land readjustment project methodologies, while Section 5 examines four case studies using temporary use methods. In this pivotal part of the thesis, the text first overviews the background and challenges faced by the cities where the six Land Bank projects are located. Then, it analyzes the origins, development processes, and specific details of the Land Bank projects in each case, intuitively demonstrating the operations of Land Banks through actual examples. Moreover, it delves deeply into evaluations of Land Banks by government agencies and residents to gain a more comprehensive understanding through analysis.

2. Literature Review

2.1. Concept Introduction

The concept of Land Banks in Japan is still developing. Mainly, private organizations are addressing the issues of vacant homes and lands, utilizing national support and market frameworks to redistribute and utilize unused land. These efforts are continually evolving and adapting to meet local needs.

The first academic paper on Land Banks in Japan was published in 2010 [14]. This paper highlighted the increase in vacant homes due to the population decline in Japan and focused on American Land Banks as urban planning measures to address these issues. Subsequently, researchers in 2013 [8] provided a detailed report showing the achievements and significance of American Land Banks. Since then, many researchers have reported on the potential of Land Banks as measures against vacant homes and lands, proposing their usefulness in Japan.

In January 2013, the Tsuruoka Land Bank was the first specific initiative to be authorized as a nonprofit organization (hereinafter abbreviated as NPO) in Japan [15,16]. The Tsuruoka Land Bank’s approach involved “small-scale, linked-type land readjustment projects” that collected lands that were difficult to utilize due to non-compliance with legal standards concerning road widths and configurations and reorganized them. This method was recognized as a pioneering effort in Japan. Various trials were conducted to expand this method, but few actual cases materialized due to land ownership issues and a lack of understanding from owners. However, cases have shown that this method can be feasible if conducted within a specific timeframe, and lands in these cases have been utilized temporarily as plazas or farms.

In Japan, private initiatives to utilize vacant homes and lands have preceded the establishment of formal systems. Residents are troubled by vacant homes and lands. The desire to overcome issues that the existing systems could not resolve has driven activities such as Land Banks. The MLIT has compiled and disseminated these activities as case studies [17]. This shows that measures against vacant homes and lands are not led by the government but are advanced by private entities, indicating the expectations placed on the activities of community-based organizations.

In light of these activities, in October 2019, the MLIT identified Land Banks as a method for “creative utilization” in their directive on the future direction of land policy aimed at “Realizing Creative Utilization” [18]. Furthermore, in 2020, the Ministry began supporting the “Model Survey for Constructing Advanced Examples for Promoting Proper Use and Management of Land through Utilization of Land Banks” [19]. The rationale for this support stems from the observation that as Japan enters a full-fledged era of population decline, the trend of increasingly mismanaged lands being left underutilized has been noted. Regarding measures for such mismanaged lands, the government provides partial funding for implementing advanced initiatives independently or in collaboration with non-governmental organizations such as NPOs, private businesses, and legal and real estate experts. This support is delivered through a national direct investigation (the Model Survey for Constructing Advanced Examples for Promoting Proper Use and Management of Land through Utilization of Land Banks). The results obtained through this support are published to expand the implementation of these initiatives to local governments nationwide with the aim of promoting the effective utilization and proper management of mismanaged lands.

This support project was implemented over two years, and the “Measures for Lands with Unknown Owners” project is currently being deployed as a successor [20].

The term “Land Bank” does not have a settled definition in Japan. In the United States, it refers to a system that functions as a “bank” consolidating vacant and underutilized land centrally. In Japan, it often signifies a “project” with a Land consolidation initiative (small-scale, linked-type land readjustment projects). Although the organization “Shima-Hito-Takara” in Amami City includes “Land Bank” in its name, it does not engage in traditional Land Bank projects. The organization primarily focuses on converting vacant houses into new uses, such as transforming them into guest houses. Land Banks are still in their initial phase in Japan.

2.2. Evaluation of Previous Research

2.2.1. Previous Research

In research papers on Japan’s Land Banks, Abe and others [21] have conducted an overview and case analysis of the Tsuruoka Land Bank. They believe that the Tsuruoka Land Bank has successfully converted the city’s underused assets into land that can be redeveloped. Furthermore, they point out that the Tsuruoka Land Bank not only improves the living environment of residents but also provides economic benefits to local governments through housing tax, property tax, and urban planning tax [22]. Next, Kagami conducted a case study on the Kaminoyama Land Bank, noting that the project is widely recognized by residents and governmental agencies [23].

The “Land Bank” plan revitalizes neglected vacant lands and houses in city centers, turning them into attractive places to live. Such steady efforts also prevent the outflow of young people [20]. A Land Bank is a long-term project development in which national governments, local governments, and NPOs each play their roles. Together, they need to jointly search for and nurture successors to address future engaging challenges [23].

Land Bank commercialization faces challenges as it depends on generating income from the sale of residential land. High demolition and development costs reduce expected profits, and when there are few vacant homes or lands, the low land value further complicates commercialization [24]. Additionally, because the private sector primarily leads the projects, the government and related agencies must provide the collection, provision, selection, and distribution of property information as well as organizational management and financial support [21,22].

The papers mentioned above analyze the benefits and challenges faced by projects such as the Tsuruoka Land Bank and Kaminoyama Land Bank through case analyses of their business structures and activities. While the current research primarily focuses on these individual cases, it provides important insights and practical examples for understanding and disseminating Land Banks.

2.2.2. MLIT Initiatives

In Japan, the primary purpose of Land Banks is to effectively utilize vacant homes and lands with complicated ownership rights or unknown owners, particularly in densely populated urban areas. The aim of these projects is to recover land resources and stimulate the local economy by accepting donations or selling low-quality land and conducting demolition, land clearing, and land readjustment. These initiatives focus primarily on lands that are difficult to rebuild on due to their irregular shapes or low market value with the aim of improving and regenerating the existing urban environment.

In April 2020 [19], and again in April [25] and August 2021 [26], the MLIT announced guidelines for the “Model Survey for Constructing Advanced Examples for Promoting Proper Use and Management of Land through Utilization of Land Banks”. This initiative calls for cooperation among diverse entities, including NPOs, private companies, universities, professional groups, and local public entities, to address the use and management of poorly managed lands. These efforts involve constructing consultation systems in communities and sharing information about vacant lots and homes while also focusing on matching and coordinating proper land use and management and taking on management functions on behalf of landowners. The national government supports part of the costs needed for these activities through direct national surveys, with a maximum subsidy of JPY 3 million (including tax) per area depending on budget availability and application adjustments.

In 2020, 17 organizations applied for Land Bank projects in Japan, and 6 were selected. These projects offered diverse solutions to the issues of vacant homes and lands. For instance, the nonprofit Tsuruoka Land Bank in Yamagata Prefecture analyzed successful and unsuccessful consultation cases to explore solutions for land readjustment based on access conditions and geographic factors. The NPO Kaminoyama Land Bank in Kaminoyama City addressed issues of vacant homes and lands in the city center through environmental improvements and land readjustment. Koto Design, an architectural firm in Kobe City, Hyogo Prefecture, supported the third-party management and utilization of vacant lands, building a platform closely tied to local needs and networks. The project in Amagasaki City, Hyogo Prefecture, focused on effectively using homes and lands donated or sold at low prices; carrying out demolition, land alignment, and land readjustment; and evaluating the economic effects of these activities. The general incorporated association Shima-Hito-Takara in Amami City, Kagoshima Prefecture, researched methods to locate landowners and collaborated with experts to explore the effective utilization of vacant lands. The Midorigaoka Nishi Neighborhood Association in Yachiyo City, Chiba Prefecture, enhanced land management efficiency and residents’ quality of life by activating local resources to locate landowners, implementing appropriate land management, and promoting resident participation and land use matching.

Given the detailed analyses conducted in 2020, the trends in project applications for 2021 are notable. In April 2021, ten projects were applied for, and four were selected. Building on the previous year’s projects, three new organizations and the continuing Koto Design in Kobe City expanded their approaches to managing and utilizing vacant lands, offering diverse services ranging from mowing to temporary use. This firm introduced a new business model, including rental gardens, and specifically verified the effects of the services. In August, five organizations received applications, and two projects were selected.

Among the 12 groups supported by the MLIT, Koto Design was counted twice as it was selected once in 2020 and again in 2021. Therefore, there are actually 11 distinct organizations involved. The first round of support by the MLIT included six projects, namely, two NPOs, one general incorporated association, one community-based organization, one private company, and one governmental agency. In the second selection round, one general incorporated association, two private companies, and one governmental agency were chosen. In the third round, one general incorporated association and one private company were selected. These data show that the first selection round had the most balanced composition of participating groups, achieving participation from diverse fields.

2.3. Research Gap

Although research on Land Banks in Japan has attracted some interest in academic and policy circles, the existing literature predominantly focuses on analyzing individual cases [21,22,24]. These studies typically discuss how specific Land Banks operate, their outcomes, and their social impacts, providing valuable insights into the practices of individual cases. However, there is a lack of research that systematically organizes and compares multiple cases to identify commonalities and differences. Consequently, it is challenging to comprehensively understand the diversity and commonality in the organizational structures, operational methods, and sustainability of Land Banks, which hinders a deeper understanding of the overall development trends.

To address these gaps, a comparative analysis of the six Land Banks initially supported by the MLIT as Land Bank projects was performed. The purpose was to elucidate the differences and similarities in their founding backgrounds, organizational structures, operational methods, and sustainability. Specifically, a cross-case comparative analysis of multiple Land Banks in Japan was conducted to provide a systematic perspective lacking in the previous literature [21,22,23,24]. Secondly, through detailed examinations of multiple projects, the efforts of Land Banks adopted in 2020 were categorized into two methods, land readjustment and temporary utilization, evaluating the effects and impact on the sustainability of each approach. Furthermore, by incorporating feedback from various stakeholders, including administrators, local government agencies, and residents, the operational realities and social impacts of Land Banks were explored from multiple perspectives.

3. Research Method

3.1. Research Entities and Scope

Six model cases supported by the MLIT in 2020 were selected to clarify the actual utilization of Land Banks in Japan. These cases were implemented in Tsuruoka City, Kaminoyama City, Amami City, Kobe City, Yachiyo City, and Amagasaki City. They demonstrated advanced efforts to promote the proper use and management of land (Figure 1). Specifically, they focus on concrete measures addressing the issues of vacant lands and vacant homes.

In this study, field research was conducted over the course of one year, starting in September 2023, on the six model cases that received support from the MLIT (Figure 1). The aim of this research was to examine the implementation effects of the Land Bank projects and the evaluations of various stakeholders in detail. The survey focused on three main entities (municipal administrative departments, residents, and Land Bank teams) with the aim of comprehensively capturing each group’s perspectives and opinions through systematic interviews and analysis.

In discussions with the municipal administrative departments, emphasis was placed on three main themes. The first theme was the current state and evaluation of vacant homes and lands, the second was concerned with the outcomes and main challenges of the Land Bank projects, and the third involved plans for specific strategies for the future handling of vacant homes and lands. Additionally, the administrative departments shared their expectations for potential changes in the community brought about by the Land Bank projects and provided detailed explanations of related policy plans.

Next, through informal discussions with residents, their perception of changes in the community was evaluated. Opinions were collected, particularly regarding the impact of Land Bank projects on community development and daily life. Residents’ opinions were diverse, including positive evaluations of the projects and concerns and suggestions for improvement. They were mainly focused on whether the projects contributed to the community’s sustainable development.

Finally, through detailed interviews with the Land Bank teams, a deeper understanding of the challenges they faced while implementing the projects and how they addressed them was obtained. The discussions also covered how feedback from administrative departments and residents was utilized to adjust project strategies. Team members summarized the achievements, reflected on the current progress, and presented preliminary plans for future improvements.

3.2. Specific Approaches of the Initial Land Banks Adopted in 2020

The activities of the six organizations studied in this research demonstrate the local realities of Land Bank methodologies, and they can be broadly categorized into two types.

3.2.1. Land Readjustment: Revitalizing Regions Through Land Reorganization and Development

Land readjustment is a novel method that enhances land use efficiency through land acquisition, assembly, and redevelopment [27]. This approach transforms the layout and conditions of districts, particularly in undeveloped or non-planned urban areas, by constructing or reallocating public facilities [28]. This method has been extensively used in various scenarios ranging from urban to agricultural areas, downtown redevelopment, new town construction, public housing projects, and the development of railways and public transportation since the implementation of the Land Adjustment Act in Japan in 1954 [29,30].

Based on the MLIT classifications, this document defines privately implemented projects conducted by individuals, communities, land readjustment associations, and land readjustment companies. In contrast, those conducted by public bodies, administrative agencies, the Urban Regeneration Authority, and local housing supply corporations are defined as publicly implemented. As of the end of 2020, 3725 km² of projects were under construction, with private implementers responsible for 148,534 km² and public implementers for 159,703 km², totaling 308,237 km² [31].

A comparative analysis was conducted in this research using data from 2020 [32] and referencing data from 1994 [31]. From 1994 to 2020, the responsibility of private implementers increased from 42% to 48.2%, while that of public implementers decreased from 58% to 51.8%. This significant shift reflects changes in policy or market environments, indicating that individuals play a more crucial role in land and project development, especially in mature cities experiencing population decline. This is likely driven by policy support, market opportunities, and technological advancements. Conversely, the decrease in the responsibility of public implementers may be due to adjustments in government policy, fiscal constraints, or increased confidence in the private sector’s capabilities. This trend suggests that land use and urban development strategies are becoming more market-oriented and increasing individual participation.

These activities target regional organizations precisely because of this trend toward market orientation and increased individual involvement. By employing methods such as land reorganization, land redistribution, and road improvements, they aim to resolve local issues, thereby enhancing land values. Examples include projects handled by the Tsuruoka City’s NPO, Tsuruoka Land Bank, and the Amagasaki City Administration. The aim of these projects is to solve regional issues and boost land values through land reorganization, land readjustment, and road access improvement.

3.2.2. Temporary Use: Interim Utilization of Vacant Land and Homes

Temporary use, or provisional use, refers to a strategy for temporarily utilizing land that either lacks a final development plan or is not scheduled for use in the short term. This approach is widely adopted in urban planning and development in Japan, with the primary objectives being to fully utilize spatial resources, prevent land abandonment, and simultaneously positively impact the surrounding area and society. Temporary use typically relates to unused or vacant urban spaces, and its operational process may include signing rental agreements and building collaborative frameworks with the community.

The concept of temporary urbanism has gradually evolved from once informal and tolerated practices to systematic strategies [33]. This method optimizes the efficiency of using vacant lands and offers new means for urban regeneration, and has become a significant trend in contemporary urban planning. This strategy focuses on filling the gaps in the urban development cycle and promoting spontaneous and short-term changes in the physical environment, emphasizing short time frames and the rhythm of change [33,34,35]. This flexibility allows quick response to changes in social and economic demands and the creation of adaptable urban spaces.

In practice, temporary use appears in various forms and functions. Parks, communal spaces, and events are standard options for temporary use, along with parking lots, gardens, and libraries. Insights can be gained from a compilation of cases on the temporary use of unused spaces by the MLIT [36] that cites various examples. For instance, vacant lots are used as parking areas in Obihiro City, Hokkaido, the North Stall, and Fukui City’s Shin-ei Terrace. In Matsuyama City, Ehime Prefecture; Minna no Hiroba in Ube City, Yamaguchi Prefecture; the Youth Creative Container in Sendai City; Miyagi Prefecture’s EKITUZI; Kitazawa, Setagaya District; Tokyo’s Shimokitazawa Cage; and Chiba Prefecture’s HELLO GARDEN in Chiba City, vacant lands are utilized for child markets, parent–child sunset yoga, U salons, garden festivals, and mochi-making festivals, serving as places for multigenerational interaction and event spaces. Furthermore, vacant lots in Miyazaki Prefecture’s Aburatsu Arcade Garden in Nichinan City and Osaka Prefecture’s Minna no Uen in Osaka City have been transformed into gardens where team vegetable cultivation, workshops, and seedling planting activities take place. In Kobe City, the urban disaster prevention vacant lot is designated as an activity base in case of disaster. These cooperative models effectively harmonize public and private interests, enhancing community cohesion and a sense of belonging through extensive community participation.

In summary, the strategy of temporary use, characterized by its flexibility and quick adaptation to socioeconomic demands, has been widely adopted and well received in Japan. These activities promote regional change through temporary utilization with the aim of engaging residents and visitors by using vacant lands and homes to increase interest in and awareness of local resources and current conditions. Examples include Kaminoyama City’s NPO Kaminoyama Land Bank, Kobe City’s “Koto Design”, Amami City’s “Shima-Hito-Takara”, and the “Midorigaoka Nishi Neighborhood Association” in Chiba Prefecture. These organizations have also implemented methods of temporary utilization in their projects. These activities, by temporarily utilizing vacant land and buildings, enhance the interest and awareness of residents and tourists regarding local resources and current conditions, thereby facilitating regional changes.

These six cases were divided into categories as detailed in the following.

4. Findings and Discussion I—Case Study Utilizing Land Readjustment Project Methodologies

4.1. NPO Corporation Tsuruoka Land Bank

4.1.1. Tsuruoka City Background

Tsuruoka City, where Tsuruoka Land Bank operates, is in the northwestern part of Yamagata Prefecture and faces the Sea of Japan. It is a rural city with an area of 1311.5 km², making it the 11th largest in Japan and the largest in the Tohoku region, with 402.8 km² of this being inhabitable land [37]. Despite its vast area, Tsuruoka City is experiencing a declining population, particularly notable for its aging demographic. As of 2020, the total population of Tsuruoka City was 122,347, with seniors aged 65 and over accounting for 35.3% of this number [38]. Over the past 30 years [38], the proportion of the elderly has risen sharply from 17.1% in 1990 to 23.7% in 2000 and 28.8% in 2010. These data indicate a significant shift in the population composition, leading to numerous social challenges.

With these demographic changes, serious issues concerning the living environment in Tsuruoka City have become evident. The increase in vacant homes is particularly significant; according to Tsuruoka City’s vacant home survey [39], in 2020, there were 3582 vacant homes (6.4% of all homes), an increase of 776 homes from 2806 vacant homes (5.1%) in 2015. This increase reflects a rise in the vacancy rate from 5.1% to 6.4% over five years. Thus, as Tsuruoka City faces an aging and population decline, problems such as increasing vacant homes and deteriorating living conditions are becoming more pronounced. Addressing these issues requires cooperation across the community and effective policies.

The investigation results suggest that the leading cause of the vacant home issue in Tsuruoka City is the presence of dilapidated houses over 35 years old. These homes are often situated on plots smaller than 100 square meters, with narrow or dead-end roads that complicate vehicle access. The city center was developed during the Edo period as a castle town, and subsequently, densely packed residential areas have continued to form, leaving behind small, irregularly shaped plots and narrow, winding roads. These features are not well adapted to modern automobile society. Specifically, parcels can extend approximately 1 km in perimeter in areas divided during the castle town era, containing narrow roads and dead ends, which obstruct vehicle traffic, especially during snowy conditions. Additionally, the impact on individuals with limited transportation options is a concern in an aging society. Moreover, the prevalence of narrow roads makes it difficult to construct new buildings or redevelop, thereby delaying the area’s revitalization.

4.1.2. Tsuruoka Land Bank

In 2011, to address the challenges outlined above, academic experts, local real estate agents, and members of the construction industry association’s youth division founded the “Tsuruoka Land Bank Study Group”. A model project targeting densely populated residential areas was implemented as a social experiment by this study group. Their efforts were recognized in 2012 when Yamagata Prefecture awarded them the “Yamagata Hometown Public Interest Grand Prize” for solving regional issues. Following this achievement, the “NPO Corporation Tsuruoka Land Bank” was established in 2012, and it received its official nonprofit status on 22 January 2013. In the same year, it was selected for the “Resident Participation Urban Development Fund” by a private urban development promotion organization, receiving a total of JPY 30 million in funding for urban development projects, consisting of JPY 10 million in grants, JPY 18 million from the city, and JPY 2 million in donations from private companies.

The Tsuruoka Land Bank’s activities involve numerous stakeholders. As of 2023, its members include local real estate agents, construction associations, administrative scriveners, judicial scriveners, and architects. Academic institutions, financial institutions, and Tsuruoka city employees also support their activities. Within this broad cooperative framework, the corporation is undertaking various projects aimed at regional development.

The Tsuruoka City Land Bank initiative is a comprehensive effort to revitalize the area and effectively utilize vacant homes and lands that has achieved various accomplishments. The specific project activities are categorized into the following five areas.

• Land Bank Fund

This fund supports the maintenance of densely populated residential areas through consultations about vacant homes, considering demolition and road widening, refurbishing reusable vacant homes, and collaborating with member businesses to facilitate sales. To date, the Tsuruoka Land Bank has facilitated 11 road donations and land improvements through donations and, in collaboration with demolition contractors, secured orders for 67 out of 251 demolition requests, steadily advancing regional development.

• Conversion of Vacant Homes

This project proposes converting vacant homes into shared or community houses. The project advances regional revitalization by renovating vacant homes to meet local needs. These efforts promote the reuse of vacant homes, bring new vitality to the community, and enhance community functions.

• Vacant Home Management Service

This paid service includes patrolling vacant homes and performing exterior inspections, lock checks, and maintenance of trees and weeds. By ensuring the proper management of vacant homes, the service enhances the sense of security in the area.

• Vacant House Bank

This service collects information about vacant homes and lands from owners, creates a database, and facilitates connections between those wanting to divest and those wishing to acquire or utilize these properties. The cumulative number of properties registered in the Vacant House Bank has reached 624, indicating steady progress in the utilization and proper management of vacant properties.

• Tsuruoka Land Bank Fund

Tsuruoka City, the Private Urban Development Promotion Foundation (MINTO Foundation), and private businesses jointly established this urban development support fund. The fund supports community revitalization and sustainable urban development by granting funds to renovate vacant homes, improve community facilities, and enhance transportation infrastructure.

To date [40,41], the utilization of vacant properties and the renovation and maintenance of vacant lands have progressed, enhancing urban functions and promoting interaction among residents. Additionally, support for coordination activities has been achieved in 26 cases, with proactive adjustments involving residents and stakeholders. Through these grant activities, sustainable urban development is advancing, establishing new models of urban development through cooperation between private businesses and municipalities, thereby contributing to regional development.

4.1.3. Land Utilization in Tsuruoka City: Development of the Tsuruoka Land Bank

In Tsuruoka City, the Tsuruoka Land Bank employs two primary types [42] of land readjustment methodologies: the small-scale “land plot readjustment”, which reorganizes residential plots for construction without involving public infrastructure, and the broader “collective land readjustment”, which comprehensively reorganizes both private residential plots and public lands such as roads and waterways, including the construction of public facilities.

The implementation of the project relies on accurate land data and the support of adjacent rights holders. Figure 2 was created by combining the current maps and cadastral information with registry certificate information, showing the area surveyed by the Land Bank (marked with a blue line). The map details plot numbers, owner names, and land areas, with color-coding by the owners, serving as crucial material for project research. Furthermore, surveys on the land use intentions of adjacent rights holders were conducted. The results were classified into three categories (reservation of interest, desire to sell, and maintenance of the status quo) and recorded on the updated original maps (Figure 3). Within the blue area of Figure 2, the area marked with a red line in Figure 3 is identified as the operational scope of the Land Bank. From this information, a rights holders’ intention map was created, clearly defining the land boundaries of project participants and indicating their intentions.

Based on these analyses, the project team identified potential regional boundaries for the Land Bank project (Figure 4) and formulated specific land utilization and readjustment plans. These plans aim to enhance land use efficiency and regional functionality, addressing the current land use issues and laying a foundation for future urban development in Tsuruoka.

4.1.4. Administration and Residents’ Evaluation

The Tsuruoka Land Bank initiative primarily focuses on operating as a “Vacant House Bank” and has been generally highly regarded by the government. Notable aspects include managing vacant houses and lands, providing grants, and promoting registrations to the Vacant House Bank. The government supports properties registered in the Vacant House Bank by providing coordinator assistance and strengthening connections with citizens. Moreover, with the increase in properties in suburban areas, the use of the Vacant House Bank is playing an increasingly important role and contributing to regional development.

However, the administration faces challenges with properties that are difficult for the private sector to handle which the Land Bank has taken on, leading to low profitability and increased financial burdens. As a result, the administration has introduced a registration fee for the Vacant House Bank (JPY 5000 per property) this fiscal year to reduce financial burdens. Additionally, there are high expectations for the Land Bank regarding road widening and adjacent land adjustments. Efforts to increase land values, collaborate with tax systems based on revised regulations, and use special districts are being considered to address these challenges.

Residents also regard the initiative highly, but awareness is not yet pervasive, and continued awareness campaigns are needed. Residents particularly find the consultations and support concerning the management of vacant houses and land useful, and they are satisfied with the responses from Land Bank members at consultation sessions. This has helped build trust with the community, increasing expectations for future initiatives.

Regarding infrastructure improvements, such as road widening, the Land Bank plays a crucial role as a coordinator, including adjacent land adjustments, and the joint efforts of the administration and residents in regional development are being praised. However, some residents are concerned about the low profitability of properties the Land Bank takes on which the private sector does not handle. The administration plans to introduce a registration fee for the Vacant House Bank to reduce financial burdens and strengthen future operational structures.

Thus, while the Land Bank project has received high praise from the administration and residents, it also highlights financial challenges in operations and coordination with the private sector. Further awareness campaigns to deepen understanding among residents and concrete measures to improve profitability will become increasingly important in the future. Additionally, addressing the issues of vacant houses and lands will require cooperative and sustainable solutions involving the administration, the private sector, and residents.

4.2. Amagasaki City Hall

4.2.1. Amagasaki City Background

Amagasaki City, located in Hyogo Prefecture within the Hanshin metropolitan area, is an urban area in the western part of the Osaka Plain. The city has many densely populated urban areas and small plots, where reconstruction is often challenging. In such areas with low market value, the motivation of property owners to sell is low, and real estate agents are less active, leading to neglected vacant homes and lands. This neglect results in long-term vacant properties that negatively impact the vitality and environment of the community. Therefore, the proper management and reintegration of vacant homes into the market are urgent needs.

From June 2020 to March 2021, Amagasaki City conducted a factual survey [43] of all buildings within the city. The results showed that out of 14,960 surveyed properties, 8245 were identified as “likely to be vacant homes or similar”. The aim of the survey was to understand the actual situation of the vacant home issue and collect basic data necessary for future policy decisions. The results indicated that the area particularly affected by an increase in vacant homes is the Oda district in the southern part of the city, where 1996 of the vacant homes, representing 24.2% of the total in the district, are located.

Considering vacant properties by the type of building, “residential” properties are the most numerous, with 6239 cases, accounting for 75.7% of the total. The Oda district has the highest number of vacant homes within this residential category, totaling 1469. In addition, the Oda district has a significant number of vacant “shops” and “factories/offices” which is exceptionally high compared to other areas, negatively impacting the local economy.

Regarding building materials, most vacant homes are “wooden”, comprising 94% (7679 cases) of the total. The Oda district has 1769 wooden buildings, many of which were built before 1981 and likely lack earthquake resistance. Notably, many vacant homes face narrow roads (2–4 m wide), which may not function as evacuation routes in the event of a disaster.

Thus, the issue of vacant homes in the Oda district extends beyond the simple aging of residences, significantly affecting the area’s disaster preparedness and residents’ safety. The aging of row houses and the specific risks related to wooden construction concerning earthquake resistance and disaster prevention are particularly concerning. Immediate concrete measures, including the development of narrow roads, are urgently needed. Strengthening the earthquake resistance of vacant homes and road construction for disaster prevention are pressing issues to address.

4.2.2. Amagasaki Land Bank

Amagasaki City faces serious challenges in urban redevelopment, particularly in densely populated urban areas with increasing vacant homes and lands. The presence of many small and unconnected plots makes reconstruction difficult, lowering the market value of the land. As a result, owners tend to avoid selling, which could lead to a decline in regional vitality and external economic disadvantages. Traditional urban redevelopment strategies have not resolved these problems, and effective land utilization has not progressed. Furthermore, many properties have complex ownership issues, including some with unknown owners, complicating individual responses. To resolve these issues, the introduction of a Japanese version of the Land Bank model, inspired by the American Land Bank, is being considered, with preparations underway for its implementation.

Specifically, in Amagasaki City, the policy is to purchase vacant homes and lands at low prices and carry out land readjustment and integration to promote effective land use. The aim of this policy is to stimulate the market circulation of land and target regional regeneration. Particularly noteworthy areas within the Amagasaki City Land Bank region include the Imafuku–Kaisejima districts in the Oda area. Despite their proximity to Hanshin Kaise Station and Osaka City, these areas are underutilized, with formerly bustling shopping streets from the high economic growth period now in decline, marked by vacant homes and shops. Additionally, these areas have complicated rights relationships, and many properties have unknown owners, making individual responses challenging. This led to the introduction of the Land Bank project to resolve the issues unaddressed by traditional urban redevelopment strategies.

Amagasaki City’s Land Bank project has been implemented differently from projects in other regions and remains in the planning stage. The project concept was centered on continuously managing and effectively utilizing land, focusing on vacant homes and landowners who wished to donate or sell. Specifically, a Land Bank project involving small-scale and gradual land readjustment was proposed. Preparatory activities included surveying land registry information (including comparison with residential registration), calculating a broad-based rate of unknown ownership, and land readjustment simulations. However, the project did not proceed to implementation due to the cautious evaluation of necessary financial burdens, profitability, and sustainability. Thus, the Amagasaki City Land Bank project has not been established as an actual case.

The implementation of this project is expected to advance the regeneration of vacant homes and lands, restore the region’s attractiveness, and revitalize the city. Additionally, as a new method of urban redevelopment, it may also have a ripple effect on other cities.

4.2.3. Land Readjustment in Amagasaki City: Evaluating the Land Bank

Amagasaki City’s Land Bank activities are still in the preliminary phase, with no concrete cases yet implemented. The current initiative focuses on assessing the profitability, sustainability, and feasibility of potential projects. The proposed area (Figure 5), classified as a Type 1 residential zone, covers approximately 1680 m², involving 13 landowners and containing 30 buildings, 8 of which are vacant [44]. Internal roads in this area fall short of city road standards, making individual reconstruction impractical [44].

Amagasaki City’s primary aim is to reorganize land into plots of at least 70 m², consistent with the local residential ordinances and disaster prevention planning. However, the current challenges include substandard internal roads, insufficient plot sizes, and complications in complying with Article 43’s road-width regulations. To address these issues, the project proposes integrating adjacent plots and widening internal passages. However, such changes could significantly reduce plot sizes, further complicating individual reconstruction, with some plots potentially decreasing to less than 30 m² (Figure 6). Currently, there are 16 residential plots in the district, including a 170 m² plot facing the eastern road. The proposed project considers resident relocation, vacant home maintenance, and retaining-wall repairs. However, requiring landowners—particularly small-scale rights holders—to bear over half of the project costs and the sensitive nature of relocation policies significantly raise barriers to initiating the project. Additionally, landowners’ limited concern about the low marketability of their properties may further delay implementation, increasing risks such as property depreciation and fires. Thus, promoting land readjustment through a publicly led Land Bank organization is essential for developing safe, competitive residential areas.

4.2.4. Administration and Residents’ Evaluation

Amagasaki City has clear policy objectives for the Land Bank initiative but faces multiple operational challenges. While the city aims to consolidate land characterized by low market value, irregular shapes, or difficult utilization, a conservative governmental valuation significantly differs from landowners’ perceptions, causing conflicts. Additionally, unforeseen complexities such as irregular land shapes and high construction costs have led to financial deficits, raising concerns about the economic sustainability of the Land Bank model under the current policy framework.

The survey results reveal that although the government promotes this initiative to enhance land market circulation and regional regeneration, there are serious challenges due to financial and staffing shortages. The difficulty for the government in advancing this initiative increases especially when land and property rights are complex and lack transparency. The quality and sustainability of the project could be negatively impacted if the operation continues to depend on low-cost nonprofits or volunteer organizations. Therefore, the administrative department needs to strengthen coordination with professional technicians and management teams to ensure the project is efficiently managed and economically viable.

Residents exhibit conservative and negative attitudes toward the Land Bank initiative. Many are concerned that land acquisition and building demolition by the Land Bank could affect deep social connections and the current residents’ lives within the community. They feel that such actions are unethical and contrary to social morality, fearing that low-priced land sales or subdividing sales could negatively impact economic benefits. Moreover, land sales can provoke concerns about family honor and future stability, causing strong resistance among many residents. However, land-swapping methods are more acceptable and supported as a means to achieve land circulation without compromising family honor.

Given this situation, it is recognized that while the Land Bank initiative aims to promote land market circulation and regional regeneration, residents face significant challenges in operation and acceptance. The government must prioritize more realistic assessments and dialog with residents to ensure the project’s efficient operation and economic viability.

5. Findings and Discussion II—Case Study of Temporary Use Methods

5.1. NPO Corporation Kaminoyama Land Bank

5.1.1. Kaminoyama City Background

Kaminoyama City is in the southeastern inland part of Yamagata Prefecture, about 350 km from Tokyo. It stretches 23.1 km east to west and 18.8 km north to south, covering an area of 241 km² [45]. The city retains historic streetscapes centered around a castle town formed during the Meiji era. Along with advancing depopulation and aging, the city faces serious urban challenges.

As of 2015 [46], Kaminoyama City had a total population of 31,569, with 11,154 people aged 65 and over (35.3%). With aging progressing, the population decreased further by 2023 [46] to 28,211, with 11,324 people aged 65 and over (40.1%). Over the years from 2015 to 2023, the population decreased annually by 1.3% (10.6% over eight years), and aging increased annually by 0.6% (from 35.3% to 40.1% over eight years). A rapid increase in vacant houses is expected with the impending inheritance from the baby boomer generation.

The city center’s narrow roads and steep slopes around the castle town area impact the living environment. This makes it challenging for families with children, and residents tend to move to the suburbs. As a result, the number of vacant houses in the city has been increasing. In 2008 [47], there were 12,020 housing units in Kaminoyama City, with 1660 vacant, representing a vacancy rate of 13.8%. By 2018 [47], the total number of housing units rose to 12,480, with vacant houses increasing to 1830, pushing the vacancy rate to 14.7%. Overall, from 2008 to 2018, the annual average increase in the vacancy rate was about 0.1%. The number of vacant commercial properties has also been increasing; from 2006 to 2016, the vacancy rate rose from 16% to 22.2%, with an annual average increase rate of about 3.3% over these ten years [48]. In the “Land Bank Area”, vacant houses account for 15%, and many issues arise from narrow streets. Large-scale vacant inns exceed 1000 m², and these facilities are aging [49]. Many of the area’s hot spring inns have closed, becoming vacant houses, and urgent safety measures are needed due to the increasing cases.

The issues Kaminoyama City faces are not limited to the progression of aging and the increase in vacant houses and stores but are directly linked to the decline of the city center and the hollowing out of the region. This situation was a factor in the city ranking lowest in the “Desirable City to Live” ranking, but this evaluation spurred municipal renewal. By 2023, the city was voted among the top two cities favored by the youth, reflecting improvements in the city’s image. The city actively hosts events to create a bustle and attract young people, rejuvenating the town atmosphere and contributing to revitalizing vacant houses and lands. Especially around the train station, new food trucks have been set up, advancing the effective use of vacant spaces.

However, many issues still need to be resolved. There is a demand for better public facilities, road improvements, and enhanced tourist etiquette. Since many owners of vacant houses and lands live outside the city, it is crucial to establish cooperation, provide information, and set up consultation services for inheritance issues. In this context, Kaminoyama City needs to advance measures to reuse vacant lands, houses, and commercial properties and revitalize the community.

5.1.2. Kaminoyama Land Bank

The Land Bank initiative in Kaminoyama City aims to solve the vacant house problem and foster sustainable regional development. The project is designed to facilitate communication within the district and enable high-quality interactions for small groups of 20–30 visitors from outside the area. The chairman of the Land Bank emphasizes dialog with residents and operates with a balance between public and private interests. The goal is to enhance the region’s appeal and especially to encourage the settlement of families with children and increase the number of people interacting in the area. In the city center, efforts are being made to demolish vacant houses and develop vacant lots, with government and private sectors working together for regional regeneration.

The Kaminoyama City Land Bank began operating in November 2016 when it was initiated by the Yamagata Prefecture Real Estate Transactions Association as a “Vacant House Bank”. The following month, a plan to counter vacant houses was formulated. In August 2017, the All-Japan Real Estate Association of Yamagata started its initiatives in the Vacant House Bank. By November, the Yamagata Prefecture Judicial Scriveners Association had become involved in inheritance procedures. In 2018, the Chamber of Commerce and the Silver Human Resources Center began working on properly managing vacant houses, and Meikai University participated in a project utilizing vacant houses and lands. In June 2019, the NPO Kaminoyama Land Bank was established, and the nation’s first Relocation Bank began in July. In October 2020, Kaminoyama Land Bank collaborated with the Tohoku Finance Bureau Yamagata Finance Office to deploy the nation’s first strategy for addressing vacant houses and lands. In 2021, it was recognized as the first municipal city redevelopment corporation in the prefecture, and in August, it was officially certified as an accredited NPO by Yamagata Prefecture. This has allowed Kaminoyama City Land Bank to actively contribute to regional regeneration.

The Kaminoyama Land Bank brings together experts who use a multifaceted approach, including legal and inheritance issues, to address local challenges. The board, comprising experts from various fields, leads efforts to find practical methods to address vacant house issues and enhance regional attractiveness quickly. The board includes vice-chairpersons and directors from administration, academia, the judiciary, architecture, and commerce. University professors, local government officials, and judicial scriveners are among the board members, with financial industry experts participating as auditors, helping to support regional development through collaboration between the government and the private sector. Various initiatives are being undertaken to address Kaminoyama City’s vacant house issues, mainly through the “Vacant House Bank”, “Relocation Bank”, and “Land Bank” projects, which are steadily building a track record of success.

The Kaminoyama Land Bank project is a comprehensive initiative to revitalize the local community and effectively use vacant houses and land. It has achieved various results. The project’s specific activities [50] can be categorized mainly into three areas:

First, the “Vacant House Bank Project” supports housing renovation and community revitalization. Kaminoyama’s Vacant House Bank is a systematic process designed to convert vacant homes into habitable residences, ultimately distributing them to individuals and families needing housing. This process begins with the Vacant House Bank, which collects and manages unused or abandoned properties. Then, these homes undergo necessary repairs and renovations to make them suitable for living. Once the renovations are complete, the homes are transferred to the Housing Bank, which manages and allocates these renovated properties, ensuring they are effectively distributed to residents needing housing.

The project has registered 130 vacant houses, of which 102 have completed contracts [50]. This demonstrates that the project is effectively promoting social and economic development in the community and significantly improving living conditions.

Second, the “Housing Relocation Bank Project” promotes matching residential properties with families raising children. The Kaminoyama “Housing Relocation Bank Project” is designed to effectively use vacant houses and meet the specific needs of residents. This program began in July 2019, and out of the 18 properties registered, 8 have resulted in contracts [50]. The aim of this project is to prevent vacant homes from becoming abandoned. In addition, Kaminoyama has signed a collaboration agreement with the Prefectural Elderly Welfare Facility Council to support the welfare of local elderly residents. Through this partnership, the Relocation Bank system can be promoted to elderly people who wish to enter exceptional nursing homes, providing them with the necessary support.

As a part of this collaboration, promotional activities for the housing relocation system are conducted for those planning to enter nursing homes, along with consultation sessions that include family members. This ensures that elderly residents and their families can consider relocation with peace of mind, contributing further to the welfare of the elderly and solving local housing issues in Kaminoyama.

Third is the “Land Bank Project”, which revitalizes the local community by reusing vacant homes. The “Land Bank Project” is a strategic initiative in Kaminoyama that contributes to regional revitalization and economic development by repurposing vacant homes and unused facilities. The use of rental spaces provided by the Kaminoyama Land Bank has significantly lowered the barriers for those wishing to start businesses, enhancing entrepreneurial opportunities. Additionally, the project offers support for design and construction, and the Kaminoyama Land Bank works with local district associations, chambers of commerce, and tourism organizations to help create communities after businesses open. This system supports the growth of the local economy.

In 2020, an old movie theater located at the entrance of Kaminoyama Onsen, which was at risk of collapse, was designated as a special vacant house. After being demolished, it was rebuilt into a winery and wine bar by a Land Bank member. This facility now serves as a gathering place for residents and tourists and has become popular as the first winery in the area. In addition, the Kaminoyama Land Bank purchased and renovated the communal bathhouse “Sawa no Yu”, which closed in March of the same year in response to local requests for its reopening. During the renovation, local cedar wood was used to transform the second-floor Japanese-style room and create an open, welcoming community space. These efforts show that the Land Bank Project addresses the vacant house problem, effectively enhancing the area’s attractiveness and revitalizing the community.

5.1.3. Kaminoyama City’s Interim Utilization: Case Analysis of Regional Revitalization

The interim utilization plans implemented in Kaminoyama City promote the improvement of the urban landscape and community revitalization through four specific examples (Figure 7). The first example is the restaurant “Umae-to” on Bukeyashiki Street. This restaurant is housed in a wooden building with a 90-year history that was restored using the Vacant House Bank program. The restaurant serves healthy food from vegetables grown in a direct cultivation area of about 1000 square meters [51]. The second example is the store “Harappa”, located on the first floor of the former Fūgetsudō building. It functions as both a soba shop and a café. An NPO leased the building from the owner and subleased it to a woman, effectively utilizing the vacant property [51]. The third example is “Waku Waku Hiroba”, the first vacant lot utilization project by the NPO Kaminoyama Land Bank in the Yumachi area, the birthplace of Kaminoyama Onsen. After a dangerous vacant house was demolished, the land was redeveloped for community activities and relaxation. This project was completed with the cooperation of the landowner, municipal employees, and students from Kaminoyama Elementary School. The space is a parking lot for food trucks and provides dining services during a weekly night market. Finally, the “Yahata-cho Waku Waku Hiroba” is the NPO’s second vacant lot utilization project. After the land was donated to the city, it was rented free of charge to the NPO. This plaza serves both as a space for food activities and relaxation. Residents actively participate in maintaining the plaza and assisting with plant growth experiments.

5.1.4. Tsuruoka Administration and Residents’ Evaluation

The administrative side regards the Land Bank project as a strategic initiative to promote regional revitalization and economic self-reliance. The city, leveraging the support it provides and external capital, offers business opportunities to entrepreneurs from outside the city, operating on a principle that benefits both the public and private sectors. By lending donated real estate free of charge, it promotes the use of public resources. It works with chambers of commerce and senior employment centers to maximize the sustainability and impact of the projects. The administration views these efforts as enhancing regional development and securing long-term vitality while decreasing costs.

On the other hand, residents are experiencing the direct benefits of the Land Bank project. Vacant houses and unused properties are being transformed into new commercial facilities and cultural spaces, bringing new vitality to the area and offering more attractive living spaces. Projects like the renovated old movie theater and communal bathhouse provide new gathering places in residential areas, strengthening community ties. Residents regard these efforts highly as ways to preserve local traditions while enhancing their value as new tourist attractions and incorporating modern changes.

5.2. General Incorporated Association Shima-Hito-Takara

5.2.1. Amami City Background

Amami Oshima, located about 380 km south of Kagoshima, is the third largest of Japan’s many outlying islands. The island is divided into municipalities, including Amami City, Tatsugo Town, Yamato Village, Uken Village, and Setouchi Town, each maintaining its unique culture and natural environment. Notably, Amami City, the largest city on the island, was established in March 2006 through the merger of Naze City, Kasari Town, and Sumiyo Village [53]. This merger was crucial in forming Amami Oshima’s economic and industrial core, establishing Amami City as the island’s primary economic powerhouse. Amami City aims to build a society where nature and culture harmonize while maximizing its rich natural resources and profound cultural heritage.

Amami City faces socioeconomic challenges caused by population decline and aging, making regional revitalization and constructing a sustainable society urgent. In 2015 [54], the total population of Amami City was 43,156, with 12,307 people aged 65 and over, making the aging rate 28.5%. By 2024 [55], the total population had decreased to 40,249, with the population of those aged 65 and over increasing to 13,904, raising the aging rate to 34.5%. These data indicate a yearly population decrease of 0.7% and an aging increase of 0.7%. These results suggest that Amami City is facing the challenge of population decline, while the progression of aging is accelerating.

As shown in Figure 1, Amami is a remote island in Japan that faces the typical challenges of remote islands such as limited access to education, employment, medical services, and transportation. These challenges have led to population outflow. Additionally, the common problem of aging in Japan is intensifying in Amami. These factors not only hinder urban development but also severely impact the preservation and transmission of regional culture. In this context, many vacant houses in Amami Oshima have historical values ranging from 50 to over 100 years. However, long-term non-residence leads to the deterioration of buildings, with issues such as weathering, moisture, and termite damage exacerbating the vacant house problem. With many homes remaining unoccupied, local resource utilization is ineffective, and it is also difficult for new residents hoping to move to Amami City to find suitable housing. At the same time, a housing shortage is causing prices in the rental market to soar, increasing the economic burden on residents and significantly hindering the sustainable development of the entire city. Moreover, the contraction of urban infrastructure through the continuous closure of local stores and shrinking public transportation significantly reduces convenience for locals, especially the elderly. Reduced opportunities to go out limit daily life and lead to a loss of quality of life and a sense of purpose. Economically, the current labor environment and employment opportunities do not sufficiently meet the needs for urban development. Businesses and administration must collaborate to create diverse employment opportunities and actively attract talent from outside as a long-term strategy to address the labor shortage [56].

5.2.2. Shima-Hito-Takara Land Bank

In this urban context, Yasuhiro Yamashita, the representative director of the Land Bank, began exploring ways to preserve and utilize the historically valuable old houses in Amami City to address regional issues. He established the nonprofit organization “Shima-Hito-Takara”, which focuses on preserving local vacant homes while repurposing them as residences and accommodations in response to community needs, thus pursuing a dual purpose of preserving regional traditions and culture. In particular, he has strengthened collaboration with the community, working with residents and municipal governments to preserve and pass on regional culture and ensure regional fairness.

The nonprofit organization “Shima-Hito-Takara” [57] consists of experts from diverse fields and aims to advance community development and sustainable urban planning. Its core members include Amami Innovation Inc., which drives lodging operations and urban development through the “Den-Tomari” project. Japan Airlines (JAL/JAC) handles regional passenger flow and PR, Voyager Inc. provides strategic advice on lodging and dining businesses, and Grouvenotes Inc. supports regional development through people flow analysis using AI and quantum computing technologies. Additionally, the organization collaborates with local authorities and experts on regional medical care, cultural heritage protection, tourism product promotion, regional finance, marketing, and fund management, jointly striving to revitalize local history and culture.

In October 2023, the organization obtained a real estate transaction specialist qualification, setting up a one-stop system that handles everything from planning and land acquisition to design and operation. This system has smoothed the progress of projects aimed at revitalizing the region and reusing vacant houses, contributing to the sustainable development of the entire area. Moreover, the organization has promoted direct project involvement by emphasizing close collaboration with the community and actively employing locals. This approach has enabled the adjustment of project directions to meet local expectations through vacant house surveys and an understanding of community needs.

The nonprofit organization “Shima-Hito-Takara” promotes projects centered on preserving and reusing historical buildings and old houses in Amami City, working toward sustainable community revitalization utilizing local resources. The organization has adopted a strategy of converting old houses and historical buildings into accommodation facilities, simultaneously boosting the local economy and preserving these buildings. Two projects initiated in 2016 with funding from Yasuhiro Yamashita now operate as “Den-Tomari Hotel” [58], providing lodging facilities renovated from old houses and historical buildings, which also serve as regional tourist resources.

This project offers jobs to residents, the elderly, and people with disabilities. The organization manages events, workshops, after-school programs, and tutoring services, promoting local employment and strengthening communities. Furthermore, efforts are made to enhance the cultural value of the region through support for artists and gallery management. Additionally, facilities such as “Den-Tomari Old Houses” and “Ma-gun Plaza” deepen interaction with village residents while allowing visitors to experience the region’s traditions and legends, bringing new economic vitality to the area [58]. These facilities also promote local eateries and traditional performing arts, setting up a system that allows tourists to experience the local charm, effectively turning the village’s everyday life into a tourism resource.

5.2.3. Amami City’s Interim Utilization: Transforming Vacant Houses into Accommodation

The “Den-Tomari” project in Amami City, initiated by Yamashita in 2016, revitalizes vacant traditional buildings into culturally distinctive accommodations. Respecting local heritage, the renovated buildings serve as interactive spaces (“Den” meaning heritage and “Tomari” indicating accommodation), offering visitors immersive cultural experiences such as cooking classes with local ingredients, traditional song performances, and craft workshops by local artisans. This approach not only utilizes vacant properties effectively but also promotes regional cultural preservation and community interaction.

These efforts contribute to the preservation and transmission of regional culture and the revitalization of the community (Figure 8). Moreover, enhancing the area’s appeal as a tourist destination promotes the local economy. The “Den-Tomari” project is a vital model for operating accommodation and supporting the entire region’s sustainable development.

5.2.4. Administration and Residents’ Evaluation

While the municipal government shows specific support for the Land Bank project, it emphasizes the importance of community participation and private cooperation. Notably, it points out the necessity of utilizing private sector capabilities to solve complex urban issues through the Public–Private Partnership Promotion Office with the aim of fostering community involvement and utilizing local resources to manage and reuse real estate effectively. However, a cautious approach is required in its implementation, prioritizing individual property rights while encouraging participation in the Land Bank activities. This indicates that the city government aims to promote community development while protecting individual rights. Furthermore, the city government is aware of the legal issues related to the Land Bank project, including inheritance and unclear ownership, and is trying to resolve these issues by providing demolition support and other assistance, effectively promoting the reuse of vacant properties in the region. Although there are significant concerns about the ongoing challenges, the city government is carefully addressing these issues and continuing efforts to ensure the sustainable success of the Land Bank project and promote sustainable development in the community.

Residents of Amami Oshima generally hold positive views on the Land Bank project, feeling that it addresses social and economic challenges by effectively utilizing vacant houses and lands. The project is valued for creating new employment opportunities and revitalizing the local economy, particularly in addressing declining birth rates and labor shortages. Additionally, renovating old houses and unused lands into accommodation and community interaction spaces enhances the region’s domestic and international appeal, attracting tourists. This enables residents to rediscover their land’s cultural and historical value, creating a virtuous cycle of preserving regional traditions and cultures while generating new value, contributing to the overall development and improved sustainability of the region.

5.3. First-Class Architect Office Koto Design

5.3.1. Kobe City Background

The January 1995 Great Hanshin–Awaji Earthquake caused substantial damage to Kobe City. The city’s key industries were severely impacted, and many areas were devastated. Although recovery efforts were made after the disaster, not all the areas have benefited equally from the reconstruction. By 1998, the number of vacant houses in Kobe City had reached 103,980 [60], accounting for 14.4% of all the residences, demonstrating the earthquake’s direct impact on the housing market. After the earthquake, the government and related organizations actively engaged in the recovery and reconstruction of Kobe City. This led to a gradual recovery of the housing market, and over time, the proportion of vacant houses in all housing decreased. Specifically, by 2008 [60], the vacancy rate had dropped to 13.5%, and it further decreased to 13.3% by 2018 [60]. Over the past ten years, although the vacancy rate has decreased, the total number of vacant houses has generally increased and continues to do so. There were 110,100 vacant houses in 2008, which increased to 112,400 by 2018. Even in urban areas like Kobe City, the issue of vacant houses still exists.

Furthermore, there is significant unevenness in the recovery status by district. Despite many stakeholders working to solve the vacant house problem, the situation across the nine wards of Kobe City is not uniform. Particularly in Nagata Ward, the vacancy rate remains significantly higher than that of the other areas in the city. In 2013 [60], there were 11,670 vacant houses, accounting for 18% of the city’s total vacant houses, and although this number decreased to 11,100 by 2018 [60], the proportion increased to 18.3%, still showing a higher rate than other districts. In some areas of Nagata Ward, the buildings that collapsed immediately after the earthquake remain unattended as “vacant lots in a state of management neglect”. These areas often have small plots of land or land without road access, making reconstruction difficult because they cannot meet the Building Standards Act’s Road connection requirements. As a result, the land is often left unused and neglected, and the number of lands with unknown owners is increasing.

In addition to the issue of vacant houses, Kobe City is facing the common problem of aging in the urban areas of Japan. While there has not yet been a continuous decline in the total population of Kobe City, the aging issue is becoming increasingly severe. According to census data [61], Kobe’s population in 2010 was 1,544,200, with the elderly making up 23.1%. By 2020, the total population had slightly decreased to 1,525,152, but the number of people aged 65 and over had increased to 445,000, representing 29.2% of the population. Over this decade, while the average annual decrease in the total population was 0.1%, the elderly population increased at an average annual rate of 0.6%, indicating rapid aging across the city. Particularly in Nagata Ward, which has the highest rate of aging in the city, the proportion of elderly was 29.6% in 2010 and rose to 35% by 2020, an average annual increase of 0.5% over the decade. Nagata Ward is the most aged area in the city, and this trend is expected to intensify in the future. With this progression of aging, the issue of vacant houses in the ward is also expected to worsen. In this context, Nagata Ward is one of the areas that Kobe City urgently needs to address. Aging and the issue of vacant houses not only significantly impact the socioeconomic structure of the community but also present challenges to the city’s sustainable development.

5.3.2. Koto Design Land Bank

The establishment of the Land Bank in Kobe City is set against the backdrop of complex social and economic challenges following the Great Hanshin–Awaji Earthquake. Many vacant lots had been left unmanaged, particularly in areas like Masayoshi District, Komagabayashi District, and Futaba District in Nagata Ward of Kobe, which were disaster-affected yet remained outside the reconstruction plans [62]. To address these issues and effectively utilize these neglected vacant lots, the Land Bank was established as a third-party management system. The aim of this system is to improve the quality of the living environment through the effective management and utilization of vacant lots.

The Kobe Land Bank, led by “Koto Design”, was established based on the advanced land management models of the MLIT. The project was initially known as “Land Bank” and was advanced under this name. However, as the project progressed, the focus shifted more toward the concept of “Unclaimed Land” [63], and the name was changed accordingly. This name change was intended to reflect the re-evaluation of methods for efficient land use and management and further promote the utilization of vacant lots. Despite the new approach and name change, achieving specific results and securing the necessary budget were challenging. Nevertheless, these efforts have garnered national attention and have explored new solutions to the vacant lot problem.

Furthermore, the representative of Koto Design, Mr. Tsunoda, who has been involved in urban construction and densely populated area projects in the Shin-Nagata District for over 20 years, emphasizes the practical business aspects and focuses mainly on utilizing vacant houses and lots. Currently, the Land Bank is still primarily managed by the first-class architect office “Koto Design”, and Mr. Tsunoda proposes creating a platform for effective vacant lot management and information sharing [62,63,64]. Based on this proposal, the Land Bank’s members include key administrative departments of the district, industry groups, and other influential figures in the community, all focused on discussing and implementing the project and swiftly moving toward actual service delivery. By cooperating with such a diverse group of members, the Land Bank is driving comprehensive initiatives to solve community issues.

The activities of the Land Bank are diverse, focusing primarily on the management of vacant lots and vacant houses, with the goal of the effective use of land resources in cooperation with local businesses and welfare organizations. Specific initiatives include comprehensive surveys of vacant lot information within the district, rights investigations, and the creation of ledgers, establishing foundational data for management and utilization [62]. The Land Bank is also exploring possibilities for concrete business implementation by offering support menus to vacant landowners and residents, monitoring multicultural coexistence gardens, and advancing case studies of vacant lot utilization business models. Furthermore, as interim management, community participation projects such as “Walking Fields” are being implemented, and the provision of mowing services for vacant lots is being considered. Since 2021, a disability welfare service provider in the Shin-Nagata area has been experimentally undertaking mowing operations through a work-support-type business, progressing efforts to balance local employment promotion with vacant lot management. The construction of a platform aimed at the efficient management and information sharing of vacant lots and houses is also under consideration.

Based on the knowledge gained from past activities, the Land Bank has outlined the following plans to resolve local issues and achieve sustainable development. Even after the name was changed to “Unclaimed Land”, the project continues to promote the proper management of vacant lots and houses and improve living environments. In addition, it is exploring new approaches that combine nonprofit and commercial activities to enhance sustainability. Instead of large-scale initiatives, it starts with solving minor problems and seeking realistic solutions considering profitability. The goal is to solve problems closely related to the community and aim for further development of the Land Bank.

5.3.3. Kobe City’s Interim Utilization: Three Initiatives to Revitalize Vacant Lots

In Kobe City, numerous small vacant lots that emerged during the reconstruction process following the Great Hanshin–Awaji Earthquake pose a challenge. According to the “Vacant Lot Survey Map” shown in Figure 9, there are 159 such locations [62] within the city, and their effective utilization is needed. The Land Bank has temporarily utilized lots, and the following three cases were implemented (Figure 10). First, the “Walking Field” [64] project involved a site that was initially an abandoned garbage house, which was cleaned up jointly by a community support group and the landowner and transformed into a rentable garden. This initiative has allowed neighboring residents to rent the land for cultivation, effectively utilizing unused space. Next, the “Multicultural Coexistence Garden” [64] was established with the primary aim of promoting cultural exchange between local and foreign residents. Managed by the Friends of the Multicultural Coexistence Garden, regular community interaction activities deepen mutual understanding among community members and simultaneously promote the sale of vegetables grown in the garden. Lastly, the “Komahama Garden” [64] demonstrates how arts and community interaction are enhanced through management by NPO maintenance and reuse facilitated by the Land Bank; this area has become a crucial site for exhibiting art projects and promoting community interaction.

5.3.4. Administration and Residents’ Evaluation

In administration, the expectations for the Kobe Land Bank are centered around creating a sustainable model that while based on nonprofit activities, also incorporates profitability. Particularly, institutions with a public character, such as public corporations, are expected to pursue profit, solve local issues, and improve living environments while maintaining a certain level of public service. While small-scale private development can be profitable, it also risks environmental deterioration. Thus, public corporations should play a role in complementing these efforts by promoting resale with public interest and appropriate land use. Furthermore, while considering profitability, the Land Bank model is nationally recognized for its approach that does not overly rely on the market but supports the sustainable development of the local community. The administration hopes that such activities will contribute significantly to solving local issues.

The Land Bank is recognized not merely as a mechanism for residents to manage vacant lots but as a vital model for solving community problems and building interaction and trust among residents. Vacant lots created by the Great Hanshin–Awaji Earthquake have been regenerated into spaces where locals and resident foreigners grow crops together, improving the town’s image and easing community tensions. Notably, Vietnamese coriander and water spinach fields, primarily managed by Vietnamese residents, have become local symbols, fostering neighborly relations. This project, popular enough to quickly fill vacant plots and primarily used by residents within walking distance, charges a monthly fee of JPY 3300. This fee is considered affordable and ensures profitability, allowing easy participation. Such initiatives are valued not only for solving the vacant lot issue but also for enhancing the quality of life for residents and revitalizing the community. The residents regard them as potential solutions for the vacant lot problems in densely populated urban areas.

5.4. Midorigaoka Nishi Neighborhood Association

5.4.1. Yachiyo City Background

Yachiyo City is in the northwestern part of Chiba Prefecture, approximately 13 km north of Chiba City, the prefectural capital, and about 30 km east of Tokyo. Its geographical advantage facilitates commuting to Tokyo and Chiba City, attracting many commuters and new residents. Indeed, when considering migration trends [65], the number of people moving into Yachiyo City has consistently exceeded those moving out, which has been a key factor supporting the city’s overall population growth.

As for specific population numbers, in 2000, Yachiyo City had a total population of 168,848, of which 19,995 were aged 65 and over, accounting for 11.8% of the total population [65]. By 2022, the population had increased to 203,524, with the elderly population reaching 50,143, making up 24.6% of the total [65]. Over these 22 years, the annual average population growth rate was about 0.9%, while the annual average growth rate for the elderly population was about 0.6%. Thus, despite societal concerns about aging and declining birth rates, Yachiyo City is characterized by significant continuous population inflow due to geographical conditions. However, amid nationwide population decline issues, the city’s total population is also projected to decrease after 2029 [65].

Even in Yachiyo City, where the total population is increasing, aging is unavoidable and in line with national trends, with the population aged 65 and over significantly exceeding the overall population growth rate. In such circumstances, while an increase in housing demand due to new inflows is anticipated, there is also the potential for vacancies to arise due to the departure or death of elderly households, meaning that population increase does not necessarily equate to the absence of a vacant house problem. From 2008 to 2018, the total number of residences in Yachiyo City increased from 34,970 to 38,510, an increase of 3540 units, reaching a total growth rate of 10.1% [66,67]. This significant increase reflects the active housing development situation. However, the vacancy rate has shown a downward trend, decreasing from 5% in 2008 to 4.7% in 2018. Despite the increase in housing numbers, this decrease in the vacancy rate indicates that the vacant house problem is being effectively managed, with an annual average decrease of 0.03%.

As evident from the analysis, Yachiyo City is experiencing a rapid increase in its elderly population alongside overall population growth, making measures against aging a pressing necessity. Furthermore, projections indicate that the total population will decline after 2029, making the maintenance of regional vitality and community restructuring important challenges. Although the vacancy rate has shown a decreasing trend due to the increase in the number of houses, the risk of vacancies arising from the departure or death of elderly households still exists, necessitating appropriate management and reuse strategies. Advancing sustainable urban management is a key issue for the future of Yachiyo City from both demographic dynamics and housing policy perspectives.

5.4.2. Midorigaoka Nishi Neighborhood Association Land Bank

Addressing the challenges of sustainable urban management requires government policies, the collaboration of the entire community, and proactive initiatives by residents. The Midorigaoka Nishi Neighborhood Association was established in 2017, triggered by an urban redevelopment land readjustment project conducted by the Urban Renaissance Agency. The area covered by the association extends over approximately 1.41 km², most of which was previously unused land [68]. In March of the same year, 76 households participated, but by January 2021, this had expanded to 402 households [68,69]. As further population growth is expected, the uncontrolled development of extensive unused land and the occurrence of residual land pose significant challenges to community revitalization and sustainable urban development. Therefore, the neighborhood association focuses on the Land Bank model as a method for the planned management and utilization of vacant and unused lands.

Since 2019, the Midorigaoka Nishi Neighborhood Association has become a pioneer in Land Bank model activities aimed at promoting the development of suburban residential areas and facing significant challenges in managing large-scale unused lands. The association has been responsible for managing the area and has carried out land readjustment. The association is actively researching the Land Bank model, particularly in areas where weeds have arisen. In handling surplus funds, it closely cooperates with the municipal government, assisting landowners with procedural support and helping prepare and coordinate documents.

The Midorigaoka Nishi Neighborhood Association’s organizational team includes positions such as president, vice president, vacant lot measures officer, land utilization officer, and activity recording officer and collaborates with Yachiyo City’s Urban Development Promotion Office, the Chiba Prefecture Real Estate Transactions Association East Yachiyo Branch, and the Yachiyodai Urban Development LLP [68,69]. They are involved in project coordination and support, providing advice and support on land use, participating in meetings, preparing documents, and promoting efficient management through the Land Bank and the implementation of land reuse strategies.

During the adoption of the Land Bank model, the Midorigaoka Nishi Neighborhood Association has taken a comprehensive approach to the issue of vacant lots, starting with the organization of new management areas and identification of owners. In particular, blocks 4–8 of the Midorigaoka Nishi area have been incorporated as new management zones, and continuous surveys are being conducted on lands with unknown owners [68,69]. Regarding lands in disrepair due to unknown ownership, the association consults ownership information and promotes appropriate community-led management with the administration’s cooperation. Through the Land Bank, the association continues pilot projects for vacant lot utilization and unit house installation and conducts surveys of usage intentions. Furthermore, they are advancing the examination and coordination for the effective utilization of large vacant lots, such as those owned by corporations that are former waste disposal sites.

The series of processes, from searching for vacant lot owners to promoting their utilization, are aimed at proper management and the effective use of vacant lots. Specifically, this includes searching for the owners of vacant lots, encouraging participation in land utilization, promoting proper management, developing business plans for utilization, conducting pilot projects, and utilizing former waste disposal sites. Additionally, the association conducts surveys of vacant lot conditions and sends questionnaires to owners, focusing mainly on lands in disrepair. They also hold vacant lot consultation sessions, making proposals for improving management conditions and utilization through direct dialog with landowners. In some cases, the association bears the cost of management work to gain the cooperation of landowners [68,69,70].

5.4.3. Midorigaoka Nishi Neighborhood Association’s Interim Utilization: Community Engagement and Role

In the Midorigaoka Nishi Neighborhood Association’s Land Bank project, the initial step involved a thorough weeding of overgrown vacant lots, followed by multipurpose temporary activities demonstrating the effective use of space and community participation (Figure 11). Firstly, the area was transformed into a pocket park with climbing walls, a sandbox, tiny houses, and colorful chalkboards, all designed to provide a space for play and learning for local children. Additionally, regular radio calisthenics sessions [71] are held in this area, with many families participating, enhancing community interaction and strengthening neighborhood bonds. The summer exchange festival is another significant community event attended by about 1300 residents featuring numerous stalls selling handicrafts and local food [72]. This festival promotes cultural exchange and enhances the residents’ quality of life. At the same time, to strengthen the community’s disaster response capabilities, the neighborhood association has specially set up a “disaster prevention warehouse” to store necessary emergency supplies, ensuring the safety and supply of materials in emergencies [73]. These activities demonstrate the neighborhood association’s active engagement in community services (Figure 11) and management, promoting sustainable community development and enhancing its residents’ well-being. Such comprehensive community activities highlight the neighborhood association’s proactive role in the area’s self-management and in improving its residents’ quality of life.

5.4.4. Administration and Residents’ Evaluation

Amid population fluctuations and financial strains, the administration recognizes the importance of the Land Bank in promoting sustainable urban development. However, actual administrative support is sometimes limited by a lack of resources and an insufficient understanding of the Land Bank concept. In this situation, neighborhood associations become key agents in driving local development. They voluntarily solve local issues and promote revitalization, even without adequate administrative support. Residents and neighborhood associations, particularly when dealing with lands that have unclear ownership or are poorly managed, desire better responses from government agencies. Despite these challenges, government agencies and the community must work together to develop and implement more comprehensive and sustainable land management and utilization strategies through education, cooperation, and resource sharing.

From the residents’ perspective, the implementation of Land Bank plans often involves complex feelings and expectations. Residents hope that these plans will directly improve their quality of life by enhancing the local environment with convenient facilities and public spaces. Especially after experiencing the negative impacts of long-standing vacant and unused lands, they anticipate that these projects will revitalize and add value to the area. Furthermore, residents want more transparency and inclusiveness in the planning and execution of Land Bank projects, ensuring their voices and needs are heard and reflected. They are also interested in how the sustainability and long-term benefits of the projects will be maintained, emphasizing the importance of not just short-term improvements.

6. Discussion of Results and Conclusions

6.1. Discussion of Results

This study adopted a multilayered and multifaceted analytical approach to reveal the potential of Land Bank initiatives in optimizing regional land use and addressing vacant homes and lots. The results are presented in

Table 1. Land Bank projects: organizational roles, methods, and outcomes.

Land Bank Project Entity		Tsuruoka Land Bank	Amagasaki	Shima-Hito-Takara	Koto Design	Kaminoyama Land Bank	Midorigaoka Nishi Neighborhood Association
Organizational Form		NPO	Administration	Incorporated Association	Private	NPO	Community-Based Organization
Catalysts	Aging and Declining Birth rate	◯		◯	◯	◯
	Small Vacant Lots after an Earthquake				◯
	Long-term Vacancy in Narrow Areas	◯	◯			◯	◯
	Public Facility Upgrades	◯			◯	◯	◯
Methods	Land Readjustment	◯	◯
	Temporary Use			◯	◯	◯	◯
Content	Road Maintenance and Expansion	◯	◯	×	×	×	×
	Building Demolition	×	×	◯	×	×	×
	Utilization of Vacant Homes	◯	×	◯	×	◯	×
	Utilization of Vacant Lots	◯	×	×	◯	◯	◯
Example	Vacant Homes	◯	×	◯	×	◯	×
	Vacant Lots	◯	×	◯	◯	◯	◯
Presence of Profit		◯	×	◯	◯	◯	×
Business Continuity		◯	×	×	◎	◯	×

◯ ⌈Yes⌋; × ⌈No⌋; ◎ ⌈Certain⌋. Source: [authors].

and provide a comprehensive analysis of Land Bank activities across seven perspectives: organizational form, project catalysts, methods, project engagement, presence of real-world examples, profit generation, and business continuity (Table 1).

Regarding organizational forms, the six groups recognized by the MLIT in 2020 have different organizational structures and tackle urban development and land use challenges from diverse backgrounds. Specifically, Tsuruoka Land Bank and Kaminoyama Land Bank are NPOs, Shima-Hito-Takara functions as a general incorporated association, Amagasaki City acts as a governmental agency, Midorigaoka Nishi Neighborhood Association operates as a community-based organization, and Koto Design represents the private sector. These organizations leverage their unique characteristics to participate actively in sustainable urban development initiatives.

Regarding business catalysts, Tsuruoka Land Bank, Kaminoyama Land Bank, and Shima-Hito-Takara are addressing social issues such as increasing vacancies and aging populations in urban areas by promoting the effective utilization of these resources. Koto Design contributes to community regeneration by repurposing small vacant lots left from the Hanshin–Awaji Earthquake. At the same time, Amagasaki City faces challenges in reconstruction due to densely packed and narrow lands, leading to long-standing vacant home issues that negatively impact community vitality and the environment. The Midorigaoka Nishi Neighborhood Association aims to improve residents’ quality of life by enhancing public facilities and spaces.

From the perspective of business methods, Tsuruoka Land Bank and Amagasaki City use land readjustment methods to optimize broad urban planning, primarily focusing on land use planning. On the other hand, Shima-Hito-Takara, Koto Design, Kaminoyama Land Bank, and Midorigaoka Nishi Neighborhood Association use interim urban space utilization methods with the aim of revitalizing punctual spaces. Specifically, Shima-Hito-Takara and Koto Design prioritize improving management efficiency and optimizing processes, Kaminoyama Land Bank focuses on meeting the emotional needs and expectations of residents, and Midorigaoka Nishi Neighborhood Association concentrates on strengthening community and municipal structures. These methods are chosen according to the specific challenges faced by each organization and contribute to sustainable urban development.

Regarding specific project engagements, Tsuruoka Land Bank and Amagasaki City utilize land aggregation to focus on improving road access and expansion. Kaminoyama Land Bank uses vacant homes and lots to offer open community uses and invigorate the area. Koto Design and Midorigaoka Nishi Neighborhood Association focus on effectively utilizing vacant lots, with Koto Design specifically transforming vacant lots into farms to strengthen local green infrastructure. Midorigaoka Nishi Neighborhood Association advances the temporary use of vacant lots, mainly with the aim of enhancing living environments by establishing parks for children. Shima-Hito-Takara has transformed vacant homes into guesthouses, providing new facilities for tourism and regional promotion. These initiatives demonstrate that each organization is developing unique methods of urban space reuse based on their resources and community demands, representing concrete steps toward sustainable urban development.

Regarding real-world examples, Tsuruoka Land Bank, Kaminoyama Land Bank, Shima-Hito-Takara, Koto Design, and Midorigaoka Nishi Neighborhood Association have specific examples, while Amagasaki City does not. These organizations pursue their goals through practical efforts, and except for Amagasaki City, each has created successful examples, confirming their achievements.

Regarding profit generation, Tsuruoka Land Bank, Kaminoyama Land Bank, Shima-Hito-Takara, and Koto Design have already generated revenue. In contrast, Amagasaki City and Midorigaoka Nishi Neighborhood Association have not yet achieved economic benefits.

Regarding business continuity, Koto Design exhibits extreme sustainability, and Tsuruoka Land Bank and Kaminoyama Land Bank also show a certain level of continuity. However, Shima-Hito-Takara, Amagasaki City, and Midorigaoka Nishi Neighborhood Association lack this sustainability.

6.2. Conclusions

This study focuses on Land Bank projects, using specific examples to examine their effectiveness. In current Japan, the increase in vacant homes and lots is becoming more pronounced due to demographic shifts and reductions in the number of households. Awareness of these issues grows alongside a better understanding of the related laws and systems. Meanwhile, the rise in real estate of low market value or inherited without interest poses challenges for owners, making the public use of private land difficult due to the traditional strong attachment to land ownership. However, changing attitudes toward real estate and fluctuations in market values have made mechanisms like Land Banks necessary for “properties that owners struggle to manage”.

Land Banks are garnering attention as mechanisms to regenerate and repurpose the increasing number of vacant homes and lots in Japan’s depopulating urban centers by reintroducing them into the market. However, they are challenging to sustain as an independent business model without active government support and involvement. They also face issues such as difficulty confirming ownership, a lack of funds, and complex processes. Particularly in Japan, reliance on NPOs and volunteers complicates the sustainability of these initiatives. According to a private conversation with Mr. Hirose from the MLIT in September 2023, governmental support for private ownership utilization can effectively mitigate urban center issues. However, this also highlights operational risks like difficulty in securing skilled personnel and quality reduction due to cost-cutting. In the U.S., Land Bank projects are successfully integrated with urban planning and land use planning, utilizing specialists and providing insights that are also instructive for Japan.

In Japan, significant sustainability is recognized among private groups and NPOs. This sustainability is due to their established cooperative systems and shared commercial activities. Moreover, support and assistance from local governments are crucial for the operations of these organizations. However, the activities of Land Bank organizations largely depend on limited government support and meager income from vacant homes and lots, which alone are insufficient to sustain operations. As indicated in Table 1, only two out of the six analyzed cases demonstrated potential for ongoing sustainability. Leaders from Koto Design, Tsuruoka Land Bank, and Kaminoyama Land Bank have expressed in interviews that mere passion is not enough to sustain the business.

Additionally, Land Bank projects that receive support from government and local organizations are stagnating due to a lack of profit. As indicated in Table 1, although the incorporated association Shima-Hito-Takara generates profit by utilizing vacant homes and demonstrates higher operational sustainability, its business nature does not fully align with the standard Land Bank model. These insights underscore that effective urban regeneration and regional revitalization through Land Banks in Japan will require close cooperation between governmental urban planning departments and community construction. Policymakers and urban planners should explore concrete solutions to maximize the socioeconomic value of Land Banks, and extensive coordination and comprehensive support from local governments and prefectures are crucial when dealing with low-value lands or properties with difficult ownership verification.

Furthermore, attracting private investors through incentives like tax benefits is necessary to strengthen project funding sources and enhance their social and environmental values. Additionally, by establishing frameworks for local participation, community residents and local businesses can play a more significant role in project planning and implementation phases, enhancing project acceptance and success rates. Land Banks in Japan should actively incorporate technological innovations while deepening cooperation with local governments and the private sector and developing diverse funding methods.