By Takuya Okamoto | Founder & CEO of LivEQuality | CEO of Chitose Construction

On November 7, 2025, LivEQuality Ooya-san was selected as an operator for the "Public-Private Partnership Affordable Housing Supply Promotion Fund," which will launch in 2026. We will serve as the joint General Partner (GP) and sub-asset manager of this fund.

This fund is an initiative where the Tokyo Metropolitan Government and private companies pool their capital to create and manage affordable rental housing, ensuring that child-rearing households struggling with high housing costs can live with peace of mind.

The total fund size is over 20 billion yen (approx. $132 million), with the Tokyo Metropolitan Government contributing a total of 10 billion yen. This marks the beginning of a new framework in Tokyo where policy (government), the market (private sector), and investment (funds) collaborate to expand the supply of affordable housing.

It has been three years since I founded LivEQuality in Nagoya and envisioned creating a public-private partnership fund for affordable housing in Tokyo. It has been only one year since I set the goal of creating a "Japanese affordable housing market."

Things are moving at a speed far beyond my expectations. However, I believe this is not just due to our growth, but rather a reflection of how severe the problem has become. I feel both the exhilaration of reaching my goals and a sobering sense of responsibility.

Since the press release, I have received many questions about "how we moved the Tokyo Metropolitan Government." Leaders from across Asia have also shown interest. In this blog, I would like to share the journey so far and my current thoughts.

I Always Believed This Business Should Be Done in Tokyo

Since May 2021, I have been operating an "Affordable Housing Business" in Nagoya, providing low-cost, high-quality housing for single mothers facing housing insecurity.

Our model involves purchasing buildings in good locations and renovating them to enhance quality and ensure profitability. While maintaining the building's viability, we lease 30% of the units to single mothers at below-market rates. Beyond providing a home, we also run an NPO to provide life support, accompanying residents through challenges such as employment and childcare.

As a result, the employment rate of our residents after six months is 83%, and we have a 0% rent delinquency rate. We have created a business model that balances social impact and economic viability. Regarding fundraising, we challenged ourselves with "Impact Bonds," attracting investors who prioritize solving social issues over financial returns.

I started this initiative because I couldn't just sit back after learning about the dire situations of single mothers who lost both their homes and jobs during the pandemic. From the very beginning, I felt that 'this is exactly what Tokyo needs.'

The housing crisis in Tokyo is exceptionally severe; skyrocketing land prices and rising construction costs have driven rents to levels that are increasingly out of reach for many. It is clear that more people are struggling to find a stable place to live in Tokyo than anywhere else in Japan.

Starting from the Local Regions to Scale in Tokyo

When I was struggling with whether starting in Nagoya was the right strategy, Mr. Tamotsu Fukushima, former President of Benesse Holdings, gave me these words:

"If you want to create a business with real social impact, you should first develop your model in the local regions. Tokyo is not for prototyping; it is for scaling."

Mr. Fukushima himself had the experience of joining Fukutake Publishing (now Benesse Holdings) in Okayama when it was a small organization of about 50 people and expanding "Shinkenzemi", Japan's largest distance-learning and online education service for students.  Based on that experience, he advised that starting in the local regions such as Nagoya and then scaling to Tokyo and the rest of the country was the best path.

His words resonated deeply with me. Practically speaking, it was impossible for a private company to establish an affordable housing business in Tokyo—where real estate prices are astronomical—on its own. To do it in Tokyo, we had to collaborate with the power of the public sector.

I decided to first create a robust model in Nagoya. With that foundation, I envisioned a future where we would launch a 'Public-Private Partnership Fund for Affordable Housing' in Tokyo, planning to engage with the Tokyo Metropolitan Government over several years. I am truly surprised that it came to life so quickly.

Influence, Not Advocacy

The affordable housing business we tackle is a model that could only have been built in Nagoya. Because it was Nagoya, we could take our time to develop the model, benefiting from more manageable property prices compared to the capital and, more importantly, the ability to build deep, trust-based relationships within the local community.  On the other hand, to create the Japanese affordable housing market, we had to challenge ourselves to expand into Tokyo, where property prices are astronomical.

Public-private partnership is essential for this. The first action that comes to mind for establishing a public-private fund is policy advocacy. However, I have never been good at what is typically called "advocacy." While I admire social entrepreneurs who actively lobby to change policies, I felt it didn't suit me.

Instead of advocacy, I aimed for "Influence."

When measuring social impact, we usually evaluate four stages: Input, Output, Outcome, and Impact. Someone once taught me that Impact can also be viewed through the concept of "Influence" (the ripple effect on policy and other organizations).

While "Impact" represents direct social change or "results," "Influence" represents "spread," such as the effect on policy or other organizations. In my view, advocacy feels like a forceful push to change society and policies—a strong form of leadership. Influence, however, feels softer; it leaves the decision-making and action to the other party. It’s an image of people who resonate with the same passion influencing each other to achieve something together.

In the case of this Tokyo fund, it all started when one member of the Tokyo Metropolitan Assembly resonated with our mission. This person, who has long been involved in childcare policy and public housing, had a strong desire to complete an affordable housing policy as the final act of their political career.

Through this assembly member’s introduction, the Tokyo Metropolitan Government began to take an interest. Within a year, we were able to provide information to assembly members, present case studies at the Government, host site visits, and propose a public-private partnership fund model. Very quickly, "Supply of Affordable Housing" was included in the Governor's campaign promises, leading to this project.

Not advocacy, but influence. I feel this is a wonderful chain reaction based on empathy.

Passion Moves People, and People Move Society

What I want to achieve with this initiative is not just increasing the number of properties in Tokyo. It is to create an "Affordable Housing Market" in Japan. Starting from safe and secure housing, I am committed to creating a society where everyone can be true to themselves. 

In the West, large markets have emerged led by the private sector, backed by government tax incentives. Big Tech companies have announced billions of dollars in investments in this field, and many startups have been born. I want to create a similar market in Japan. This initiative should serve as the catalyst.

By making this project a success, we will use its track record to expand nationwide. I also want to open up the possibilities of impact finance in Japan.

I have always valued the approach that "passion moves people, and that passion spreads to move society." I feel that this policy was not the result of forceful lobbying, a process of growing a network of people who resonate with our vision.

While I am deeply gratified that our steady efforts and vision have been recognized, the most significant achievement is how the collective passion of our diverse stakeholders converged to shape policy and bring this business to life. That a company only three years old could move society to this extent is a testament to everyone involved. I look forward to building the Japanese affordable housing market together with all of you.

Translated by Kei Eriksen, Global Partnership Manager at LivEQuality

> For inquiries regarding global partnerships or our affordable housing model, please feel free to reach out.