Yeah there's no real upside to that demographic decline. Travelling in some more remote places outside the major cities this most recent trip and I did see examples of abandoned and derelict homes. It is very bad and worse for society than high home prices.

The Canadian government has recently been savaged by the media and opposition for their immigration policy, being blamed for high home prices, but I suspect the policy people in the government are looking at Japan and Italy small towns emptying out and are terrified and hoping to avoid that.

It should be noted that while the population of some rural and remote towns in Japan may be declining severely, the population of Tokyo is increasing. That Tokyo is still so much remarkably more affordable than the other great major cities around the world amidst this shows that they are doing something right policy wise beside the demographic issues.