By Takayasu Kitagawa

Yomiuri Shimbun Staff Writer

Sekisui House Ltd. plans to expand its business in the United States, President and CEO Yoshihiro Nakai said during an interview with The Yomiuri Shimbun and other media outlets. "We aim to implant Japanese technology into the U.S. market and pursue sustainable growth," he said.

On the Bank of Japan's decision to raise its policy interest rate in December, Nakai said "there would be little impact" on the company, as it targets the mid-to-high-end market.

The following is excerpted from the interview.

Question: In the United States, Sekisui House will shift to a new structure starting this year through consolidation of your U.S. subsidiaries under M.D.C. Holdings Inc., a U.S. housing company you acquired in 2024. Could you elaborate on it?

Yoshihiro Nakai: With the acquisition of M.D.C., we have secured an annual supply capacity of 15,000 housing units. Through our alignment efforts, we have established a "one company" structure to operate (in the U.S. market). We will integrate (operational systems regarding) governance and investment decisions, and implant the technology and quality we have nurtured in Japan into the United States. We do not currently anticipate newly acquiring other construction firms.

Q: Sekisui House has a target of building 20,000 detached houses a year in the United States by 2031. Could you discuss about it?

Nakai: With the establishment of an annual supply base for 15,000 houses, we can now see the path for achieving the 20,000-house target.

If our brands, such as Shawood, which uses a proprietary construction method where sections of the building's frame are strengthened, can gain ground, growth will accelerate. I don't think the target figure is unrealistic.

Q: There appears to be uncertainty regarding the outlook for the U.S. housing market. What are your views on the matter?

Nakai: In some respects, our strategy, which has taken into account a decline in interest rate prospects, diverged from the actual market situation. We intended to sell 15,000 ready-built houses, but the actual figure is expected to be 12,000 units. Customers are coming but not buying. This is due to weak personal consumption amid future uncertainty, yet there is a supply shortage in housing itself. (Our) inventory levels are not excessive. We will continue to make steady sales and secure profit, without relying on offering large incentives.

We want to become a housing company primarily targeting the mid-to-high-end market, which is less susceptible to external environmental factors. We aim to be a game-changer by applying in the United States what we have practiced in Japan, where we have achieved stable growth.

Q: What impact will the BOJ's rate hike have on (Japan's) housing market?

Nakai: While it's a headwind for the industry as a whole, there will be little impact (for Sekisui House) as our customers are primarily the mid-to-high-end market. A healthy economy requires a combination of moderate inflation, rising interest rates and wage growth.

Q: What do you think about investment by foreign nationals in Japanese real estate?

Nakai: As Tokyo is a global city, investment-driven acquisitions are unavoidable. It's the same as buying property in New York. If conflicts arise between residents and foreigners that are making speculative purchases, some restraints may be necessary. However, investment by foreigners itself is unavoidable. As for Sekisui House, we intend to prohibit resale during the period from contract signing to the handover (of the property).

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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January 06, 2026 21:35 ET (02:35 GMT)

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