Can’t afford to buy or rent soon? House prices have fallen, but rents have skyrocketed. The cruel truth is exposed: Tenants become the last leek

The rental index rose from 109.01 in July 2025 to 110.91 in July this year, an annual increase of 1.7%.

The real estate market has cooled down and housing prices have entered a consolidation stage, but rental prices have gone in the exact opposite direction. According to data from the Ministry of Interior’s Real Estate Information Platform, Taiwan’s residential price index and rental index in the past year, the residential price index in the first quarter of 2025 was 149.03. In the first quarter of this year, it fell to 143.85, an annual decrease of 3.5%, while the rental index rose from 109.01 in July 2025 to 110.91 in July this year, an annual increase of 1.7%. The trend of residential prices and rents is inconsistent, which has attracted market attention.

Why can rents still maintain an upward trend despite a cooling housing market? Zhuang Simin, deputy manager of CITIC Housing Research and Exhibition Office, pointed out that there are three key reasons behind this phenomenon.

First of all, related taxes and fees such as house hoarding tax and land price tax have greatly increased the landlord’s holding costs, and part of the cost may be reflected in the rental price and passed on to the tenants.

Secondly, inflation has continued to ferment in recent years, and expenditures on decoration, furniture, home appliances, and house repairs have increased simultaneously, further increasing the pressure to increase rents.

Furthermore, the high threshold for home purchase and the heavy mortgage burden are daunting. Many young people are forced to choose "renting instead of buying" due to limited funds. The rental market is becoming more and more popular. When demand exceeds supply, rental prices will naturally rise.

Zhuang Simin further pointed out that the Taiwan-wide rental index reflects overall market changes, but there may still be significant gaps in the rental performance of different counties, cities, administrative districts and residential types.

Due to the concentration of employment opportunities, school resources and living functions in Shuangbei and other major urban areas, they attract a large number of employed people, students and immigrants from other places, and the demand for rental housing is relatively strong; especially prime areas near MRT stations, convenient transportation, and mature living functions are often more prone to tight supply and demand, and rents are also more likely to face upward pressure.

Faced with high housing prices, many people have begun to think about whether long-term renting is more suitable for them than buying a house. In this regard, Zhuang Simin said that there is no absolute standard answer to buying or renting a house. The key is to take stock of your financial situation in advance and choose a living style that suits you based on your personal income, workplace, family needs and life plans.

For young people who are just starting out in society, the advantage of renting a house is that the initial financial requirements are relatively low, and it also retains the flexibility to change jobs, move and adjust living arrangements, without having to exhaust savings to pay for self-provided funds.

However, if you plan to rent a house for a long time, you must also consider the risks you may encounter in the future, including rent increases with inflation, unstable tenancies, frequent moves, and the difficulty of renting a house as you get older.