Taoyuan Ranks Lowest! Housing Affordability Ranking of Six Major Cities Released, One City Hits Record High with Price-to-Income Ratio of 14.72

Whether buying a home is difficult depends not only on housing prices but also on the gap between housing prices and household income. The Ministry of the Interior has released its housing affordability index, revealing home-buying burdens across Taiwan and its six major cities. Taipei City's housing price-to-income ratio reached 14.72 times, the highest among the six cities, with New Taipei City and Taichung City ranking second and third, respectively, highlighting clear disparities in housing burdens across urban areas.

According to the "115 Q1 Housing Affordability Index" published by the Ministry of the Interior's Real Estate Information Platform, the national housing price-to-income ratio stands at 9.47 times. The housing price-to-income ratio compares housing prices to household disposable income, measuring how burdensome housing prices are relative to income. A higher value indicates that housing prices are high relative to income, resulting in greater home-buying pressure.

Six Major Cities Housing Price-to-Income Ratio Ranking Revealed! Taipei Tops at 14.72 Times, Taoyuan Relatively Lower

Data from the Ministry of the Interior shows the housing price-to-income ratios for the six major cities in the first quarter of 115:

- Taipei City: 14.72 times - New Taipei City: 12.63 times - Taichung City: 11.35 times - Kaohsiung City: 9.35 times - Tainan City: 8.76 times - Taoyuan City: 8.43 times

Among the six cities, Taipei City leads with a ratio of 14.72 times, followed by New Taipei City at 12.63 times, indicating that housing prices relative to household income are the highest in these two metropolitan areas. Taichung City ranks third at 11.35 times, while Kaohsiung and Tainan record 9.35 and 8.76 times, respectively. Taoyuan City has the lowest ratio at 8.43 times, though a significant gap between housing prices and income still exists.

What Does a 14-Times Price-to-Income Ratio Mean? It’s Not '14 Years of Salary to Buy a House'

Many people interpret the housing price-to-income ratio as 'needing 14 years of income to buy a house,' but in reality, this ratio is not a calculation of how long an individual needs to save to purchase a home. Instead, it is a statistical indicator used to assess the overall housing market's affordability. Simply put, a higher ratio means housing prices are high relative to household income, requiring more financial commitment when purchasing a home. However, actual home-buying conditions are influenced by multiple factors, including:

- Household income - Down payment preparedness - Mortgage interest rates - Loan term - Daily living expenses

Therefore, the housing price-to-income ratio is suitable for comparing housing burdens across different regions but does not represent how long each household actually needs to save to buy a home.

Beyond Price-to-Income Ratio: Mortgage Burden Rate Also Shows Disparities Across Six Cities

In addition to the housing price-to-income ratio, the Ministry of the Interior also publishes the mortgage burden rate, which measures the proportion of monthly mortgage payments to disposable income for median-income households after purchasing a home. The national mortgage burden rate for Q1 of 115 is 41.46%. The mortgage burden rates for the six major cities are as follows:

- Taipei City: 64.41% - New Taipei City: 55.30% - Taichung City: 49.67% - Kaohsiung City: 40.90% - Tainan City: 38.33% - Taoyuan City: 36.89%

Both Taipei and New Taipei Cities have mortgage burden rates exceeding 50%, meaning that for median-income households, monthly mortgage payments consume over half of their disposable income.

Nationwide Housing Affordability Still Depends on Housing Prices and Income Trends

According to Ministry of the Interior data, the national housing price-to-income ratio for Q1 of 115 is 9.47 times, a decrease of 0.77 times compared to the same period last year. However, housing affordability remains a key concern for homebuyers. For first-time buyers, future housing accessibility will depend not only on housing price fluctuations but also on wage growth, interest rate environments, and household financial planning. From the six-city data, Taipei and New Taipei remain the cities with the highest housing price-to-income ratios. Although Taoyuan's ratio is relatively lower, overall housing burdens still require ongoing monitoring.

Sources:

- Ministry of the Interior Real Estate Information Platform, "Housing Affordability Index" - Ministry of the Interior Real Estate Information Platform, "115 Q1 Housing Affordability Index Statistical Results"

This article compiles data from public information and official statistics for informational purposes only and does not constitute any home-buying, investment, or financial advice. Actual real estate market conditions and individual home-buying circumstances may vary due to regional differences, income levels, interest rates, loan terms, and market changes. Decisions should be carefully evaluated based on personal needs.