> applicants for permanent residency will need to show that their annual household income exceeds the Japanese average

Can someone explain why they think this is a detrimental practice for native Japanese?

If there were a significant amount of such people coming in it would push up the cost of living for the average-(or below-average)-income Japanese citizen.

Look at any of the Western cities that became attractive for retirement or "investment properties" for wealthy international folks... it makes everything more expensive for everyone already there.

If the concern was just about preventing things from changing for existing citizens, restrictions across the income band would seem to make much more sense.

From the article “Japan needs foreign workers because of labour shortages. But if the conditions for long-term settlement become substantially more difficult, this could potentially reduce Japan’s attractiveness to foreign workers who are considering Japan as a place to build their long-term lives,”

Specifically, Japan needs workers in human services to physically care for the very large elderly population. They need them so badly that they are in the process of implementing easier work visas for them. But do you think those jobs pay more than the national average?

Think of the US - the reduction of low wage immigrants has been a large factor in our economy lately. Food prices have gone up, and in the long term there's fewer young families getting added to the social security system.

While it's cute to think that suddenly these jobs are going to Americans, but these are mostly undesirable jobs that pay less than typical jobs. To the extent that they even get filled by native workers, it drives real wages down and not up.

Meanwhile, only allowing immigrants from the top of the income bracket crowds out the top side of the job market.

It's a lowering tide that lowers all boats.

> Can someone explain why they think this is a detrimental practice for native Japanese?

You're quoting a practice applied to foreigners, but you say "for native Japanese". Maybe there was a typo, or I could be misreading?

It restricts immigration to cities where the high wages are, ie. Tokyo which is itself already too crowded, and forces foreigners living in less populated parts of the country to leave, further depopulating it.

It also heavily disadvantages singles.

gentrification pushing locals out. super simple