Taiwan's Income Growth Trails Soaring Housing Prices; Only Taipei Sees Modest Income Rise in Six Years

Housing prices in Taiwan's six major metropolitan areas have dramatically outpaced income growth over the last six years, leaving many residents struggling to afford homes. Data compiled from 2018 to 2023 reveals that only Taipei saw a modest increase in its average household income, rising by approximately 2.6% over the period.

In stark contrast, the other five major cities experienced declines in average reported income. Kaohsiung recorded the most significant drop, with its average income decreasing by 10.2% over the six years. This trend suggests a widening gap between earnings and the cost of living in these urban centers.

Meanwhile, housing prices across all six major cities have climbed substantially. Taipei registered the smallest increase at around 26.8%, while four other cities saw price hikes exceeding 40%. The southern cities of Tainan and Kaohsiung led this surge, with housing prices increasing by over 50% in six years.

Hsinchu County and City stand out as unique cases, showing growth in both average income and housing prices. Income in Hsinchu increased by at least 13% over the six years, with housing prices rising by approximately 60%. Analysts attribute this dual growth to the concentration of the tech industry, attracting high-earning professionals and boosting local demand for housing.

Analysts suggest that while central and southern Taiwan have tried to attract high-tech industries, traditional and tourism sectors have been hit hard by global economic conditions and the pandemic. This has led to stagnant or declining incomes for ordinary families in non-tech industries, further exacerbated by inflation, resulting in a real-terms decrease in wages for many.

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Hsinchu County and City have seen both income and housing prices rise over the past six years. Income tax filings in Hsinchu have increased by over 13% in six years, with housing price increases around 60%.