Higher market volatility and a greater housing divide constitute common features of many housing markets around the world. These tendencies can be partly explained by the dynamics of capital movements in global financial markets, the ongoing deregulation in housing and housing-finance markets, and worsening income inequalities. This chapter provides some theoretical and empirical explanations for the distinctive dynamics and social, economic, and spatial relationships in Japanese housing markets. To begin, the introductory section presents an overview of the major developments of the Japanese economy during the period from the 1990s to the mid-2010s.