Housing Starts Hit Lowest Level Since 1963 — Amidst an Era of "Fewer Builders, More Expensive Homes," a Fukuoka-Based Venture with 1,768% Growth Challenges Major House Manufacturers with a New Brand Launch.

**Fewer people are building, and the houses they build are becoming more expensive.** In 2025, new housing starts recorded 740,000 units, the lowest in 62 years. Custom-built homes (owner-occupied) were approximately 200,000 units, a 30% decrease compared to 2021 (Ministry of Land, Infrastructure, Transport and Tourism, Building Starts Statistics).

Meanwhile, the cost of custom-built homes continues to rise. According to the Flat 35 User Survey, the average cost for custom-built homes in FY2024 was ¥39.36 million, and ¥50.07 million for land-inclusive custom homes, with average order values increasing by several million yen across companies (Housing Loan Support Organization, Flat 35 User Survey).

Amidst this structural change of simultaneous "quantity reduction" and "price increase," major house manufacturers are redirecting management resources to overseas operations and renovation/stock businesses. A housing venture has emerged, boldly entering the domestic new premium market.

**WITHDOM Group Co., Ltd.** (Headquarters: Hakata-ku, Fukuoka City, Representative Director: Katsuhide Nango), a custom home builder that has achieved the No. 1 sales growth rate in the wooden construction business nationwide (1,768% growth over six years from 2019-2025, according to Tokyo Shoko Research) and is expected to reach ¥10 billion in sales this fiscal year.
The company will enter the premium price range (around ¥45-50 million), which is the main battlefield for major house manufacturers, with its new brand "SOLEST," where architects design each house individually.
A model house will have a pre-open in Onojo City, Fukuoka Prefecture in April, and expansion to Shizuoka is planned for Autumn 2026.

## Why "Target the Top" in a "Shrinking Market" — The Strategic Rationale Behind SOLEST

There is data that succinctly illustrates the structural change in the housing market.

| Market "Quantity" | Market "Price" |
| :------------------------------------ | :------------------------------------------------ |
| Starts: 1.09M in 2008 → 740k in 2025 (32% decrease) | Tsubo Price: Approx. ¥830k in 2015 → Approx. ¥1.09M in 2025 (31% increase) |
| Custom Homes: Approx. 280k in 2021 → Approx. 200k in 2025 | Average order value for major HMs increased by several million yen YoY |

In other words, **"Fewer people are building, but those who are, are willing to spend more on better homes."** This structural shift is a headwind for major players focused on quantity but a tailwind for players competing on quality.

SOLEST is a brand designed to leverage this tailwind.

Among customers of WITHDOM Group's core brand "WITHDOM Architecture Design" (centered around ¥30 million), requests for "more high-quality residences" have been increasing. On the other hand, dissatisfaction exists with major house manufacturers' premium offerings, such as "brand power but limited design freedom" and "performance specs not always cutting-edge." SOLEST targets this void: **"unsatisfied with major brands but hesitant about local builders."**

## SOLEST's "Three Weapons"

**[1] Architects Design Each House from a Blank Slate**

At SOLEST, all homes are designed by architects who meet internal standards. (This includes collaboration with excellent external architects, not just in-house ones.)
While many major house manufacturers plan within their own established frameworks, SOLEST starts from scratch. It reads the site's shape, surrounding environment, and the family's lifestyle to create "a single residence solely for that family." It realizes the experience of "living in an architectural work" at a price point comparable to major manufacturers.

**[2] Insulation Grade 7 — Standardizing the Current System's Highest Grade**

While energy efficiency standards became mandatory in April 2025, the base standard is equivalent to Insulation Grade 4. SOLEST's standard specification is far above this, at Insulation Grade 7 (equivalent to HEAT20 G3). Combined with high airtightness (guaranteed C value of 0.4 or less for all homes) and whole-house air conditioning, it ensures uniform indoor temperatures year-round with a single household air conditioner.
Few major house manufacturers offer Insulation Grade 7 as standard even in their premium lines, making this a technological advantage for a builder-origin brand.

**[3] Seismic Grade 3 + "evoltz" Seismic Damper Standard on All Homes**

In addition to Seismic Grade 3, which has 1.5 times the strength of the building code, the "evoltz" seismic damper is standard on all homes. This device absorbs seismic energy and prevents structural degradation from repeated tremors.
For many major companies, seismic dampers are often an optional upgrade, making standard adoption a clear differentiator for SOLEST.

| Item | SOLEST Standard Specification |
| :--------------- | :-------------------------------------------------- |
| Insulation Perf. | Insulation Grade 7 (HEAT20 G3 equivalent) |
| Airtightness | C value ≤ 0.4 (Guaranteed actual measurement for all homes) |
| Seismic | Seismic Grade 3 + "evoltz" seismic damper (Standard for all homes) |
| Ventilation | Type 1 heat exchange ventilation system |
| Structural Material | Domestic natural air-dried timber (AD timber) |
| Design | Full free design by architect + passive design |
| Price Range | Approx. ¥45-50 million (35 tsubo building price) |
| Expansion Areas | Fukuoka, Shizuoka; expanding nationwide |

## Representative Director Katsuhide Nango's Comment

"Hearing that housing starts are at an all-time low, many people might feel 'these are tough times.' I feel the opposite. Finally, an era where the genuine article is chosen has arrived."

"I started my career in sales at a major house manufacturer and have been in this industry for 21 years. What I've always felt is that the Japanese housing market is mired in a futile dichotomy of 'performance versus design' and 'major builder versus local builder,' forcing customers to compromise."

"SOLEST was created to break that structure. Insulation Grade 7, Seismic Grade 3, architect design. Few brands, even among major ones, offer all three as standard. Against the brand power of major house manufacturers, we compete with 'scientific evidence of performance' and 'architectural design capability.'"

"Please visit SOLEST after touring major house manufacturers' showrooms. That's all it takes. The buildings will speak for themselves."

## WITHDOM Group's Journey — From 6 People to a ¥10 Billion Company

Founded in Fukuoka Prefecture in 2018 with 6 employees. Representative Katsuhide Nango, with extensive experience in the housing industry after leaving a major house manufacturer, established the company independently.

Through its unique joint venture (JV) model, rather than a franchise system, they have expanded to 12 locations nationwide through capital participation-based direct operations. This model, where top players with proven track records in housing companies are given capital and operate as regional presidents, is the driving force behind rapid expansion while maintaining quality.

The core brand "WITHDOM Architecture Design" has gained support by balancing high performance and design, standardizing Insulation Grade 6 (HEAT20 G2 grade), whole-home airtightness measurement, Seismic Grade 3, and Matsuo-style whole-house air conditioning. Their official YouTube channel, "Wisdom's Guide to Building a Home Without Mistakes TV," has over 70,000 subscribers.

## Company Profile

| Item | WITHDOM Group Co., Ltd. |
| :--------------- | :-------------------------------------------------- |
| Company Name | WITHDOM Group Co., Ltd. |
| Representative | Katsuhide Nango, Representative Director |
| Head Office | 1F, Dai-go Hakata Kaisei Bldg., 1-18-25 Hakataekihigashi, Hakata-ku, Fukuoka City, Fukuoka Prefecture |
| Established | August 2018 |
| Capital | ¥405 million (including capital reserves) |
| Number of Employees | 189 (as of April 2026) |
| Sales | Approx. ¥10 billion (expected for FY2026) |
| Business Details | Design, construction, and sales of custom homes; real estate business, etc. |
| Locations | 12 locations nationwide (Fukuoka, Kagoshima, Hiroshima, Mie, Aichi, Gifu, Shizuoka, Nagano, Chiba, Kanagawa, Saitama, Ibaraki) |
| Brands | WITHDOM Architecture Design (custom homes), SOLEST (premium custom homes), TARIL (compact flat-roofed standard homes), etc. |