Osaka city government is closing the application window for new "special-zone minpaku" short-term rental licenses today [1].
The move comes as municipal authorities struggle to balance the needs of a growing inbound tourism market with the quality of life for local residents. While the licensing scheme was designed to alleviate accommodation shortages, it has increasingly become a source of friction within residential neighborhoods.
Demand for these licenses remains high despite the growing tension. City officials expect more than 1,000 new applications on the final day [1]. This volume represents approximately two times the number of applications received during the previous month [1].
The special-zone system allows for more flexible rental operations than standard national laws. However, this flexibility has led to significant urban disturbances. Residents have filed numerous complaints regarding improper garbage disposal, and excessive noise coming from the rental properties [1].
According to data from the city, there are now over 8,000 special-zone minpaku facilities operating within Osaka [3]. The scale of the industry has contributed to a spike in friction, with complaints in fiscal year 2025 reaching a record-high number [4].
The city government said the system was originally created to support the influx of international visitors. However, the persistent nature of the disturbances has prompted the decision to halt new entries into the program [1].
“Osaka city government is closing the application window for new "special-zone minpaku" short-term rental licenses today.”
The suspension of new licenses indicates a pivot in Osaka's tourism strategy, moving away from rapid expansion of unregulated lodging toward a more sustainable management model. By capping the number of special-zone rentals, the city is prioritizing residential stability over the immediate capacity needs of the tourism sector, signaling that the social cost of 'overtourism' has become politically untenable.
