The problem with the saving-money-to-buy-a-house theory is that the decision to plan to buy a house is itself a savings decision (it is endogenous, not exogenous). Saving money entails sacrificing current consumption for some greater future benefit--the purchase of a home is only one way that greater future benefit can manifest itself.

Thus, why the Japanese save so much and why the Japanese are choosing to save money to purchase homes (instead of renting) are basically the same question.

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Anthony M. Miyake