In Japan, the second-hand housing market is very small and the liquidity of owner-occupied housing is quite low. Many Japanese bequeath housing assets to their heirs, with such assets playing a crucial role as inheritance properties. However, whether this behavior is based on parents' willingness or the effect of the existing housing market in Japan is unclear. While previous studies have discussed the degree to which owner-occupied housing influences Japanese bequest motives. This study contributes to the literature by analyzing the impact of the illiquidity of owner-occupied housing. The results of our econometric analysis shows that the liquidity of owner-occupied housing is related with Japanese bequest motives. This finding on Japanese inheritance behavior thus provides a new insight into the "liquidity" of existing housing in the market.