I've just solved this exact problem for me.
I don't know why you wouldn't have a JDK_HOME variable. Completely remove the JDK and install it again maybe?
The Environment Variables for java were set to my previously installed path. I guess Oracle screwed up here.
As I had the same error, here's what I did:
I went to C:\Program Files\Java\ and checked what the jdk folder is called. For me it's jdk1.8.0_102.
For users who don't know where to find System Variables:
Go to System Properties and on the left hand side, click Advanced System Settings. Switch to the Advanced tab, click Environment Variables. Under System Variables there should be two variables in the list called JAVA_HOME and JDK_HOME. 
I edited those values and change the path to what I found in the java folder. In my case this would be C:\Program Files\Java\jdk1.8.0_102.
No need to close VS, just build your app and it should get passed the annoying error.
Hope this helps :)