Urban home-ownership in Japan was destabilised when the bubble economy collapsed at the beginning of the 1990s. This paper looks beyond the social and economic changes in Japanese housing in the post-bubble recession to focus on the ups and downs in current home-ownership markets in Japans major cities. Since the mid-1990s, social fragmentation has created a novel environment for urban home-ownership. The combination of a prolonged recession and a policy to promote housing construction and urban redevelopment has split urban space into hot spots, where the housing market is increasingly active, and cold spots, where the market is persistently inactive.