Founder Interview Part 4｜The Share House Boom, Backlash, and the Rise of Minpaku

Good evening! I’m Yasuko Nagase, founder and CEO of Come on UP, one of the early pioneers of international share houses in Japan. Back in 2006, when the idea of a “share house” was still unfamiliar to many people in Japan, I started this business. This is Part 4 of my story.

The Share House Boom Arrives—But Doesn’t Last

Once our first share house in Ebisu and second house in Kichijoji were running smoothly, we began looking for more properties so we could expand the business.

At the time, however, the concept of a “share house” was still not widely understood in Japan. Even when I explained that I wanted to operate one, it was difficult to get people to understand the idea.

Very few people were willing to say, “Sure, let’s do it,” to something unfamiliar that almost nobody else had tried before.

If I approached 100 people, I was lucky if 10 were willing to hear me out. Of those, perhaps one or two would move on to a serious discussion. So I simply kept asking, knowing that most attempts would go nowhere.

Then, after two or three years, things suddenly changed. Share houses began attracting attention, and Japan entered what felt like a “share house boom.”

People started describing the share house business almost as a new solution to social and housing issues. I was frequently invited onto television, featured in magazines, and asked to speak at seminars.

It felt like people had completely changed their attitude. Those who had barely given me the time of day before were suddenly interested in what we were doing. Riding that wave, we began opening new share houses at a rapid pace—roughly one every two or three months.

But the good news did not last.

Around that time, a nationwide internet café operator called Manboo was also running facilities promoted as popular “share houses.” One of those facilities was found to be in violation of Japan’s fire safety laws. Similar illegal facilities were subsequently investigated, and media coverage amplified the issue.

As a result, the public image quickly shifted toward:

“Share house = illegal or loophole housing.”

Even operators like us, who were running properties in compliance with the law, became associated with that negative image.

One moment, share houses were being praised. The next, the industry was facing a major backlash. It made me realize just how powerful the media can be.

Sometimes the Best Opportunity Is to Wait

This happened just as we were trying to make use of Japan’s growing number of vacant homes and convert more of them into share houses.

I wondered what we should do. Should we speak out publicly? Was there another way to respond?

I consulted a lawyer I trusted, and he gave me an interesting piece of advice:

“Now is not the right time to speak loudly. Imagine that the authorities have cast a net to catch whales—the bad operators—and we are just small fish caught in the same net. A small fish arguing its case won’t change much. It’s better to wait for the right time.”

My usual approach when facing a problem was to speak up and try to change the situation directly. But this time, I was being told that doing so could actually make things worse.

I thought:

“He may be right.”

So I held back, focused on operating our existing share houses properly, and waited.

The Minpaku Boom Arrives

After the share house boom faded, another trend arrived in Japan: the minpaku boom—the rapid growth of short-term private accommodation similar to Airbnb-style rentals.

And something interesting happened.

Many of the less reputable operators who had entered the share house business simply because it was profitable began leaving the market. Like ants moving toward the next source of sugar, they shifted their attention to the booming short-term rental business instead.

As a result, the share house market became cleaner.

The lawyer had been right.

Choosing not to fight publicly and simply waiting had been the right decision.

Business conditions and social trends are always changing. Looking back, I learned that sometimes you need to read the situation carefully and decide not only what to do, but when to do it.

In Part 5 of this interview series, we’ll talk about another important part of my journey: my involvement with the Junior Chamber, which I pursued passionately alongside running Come on UP.