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Taiwan's Economy

Stagnant Wages and Housing Costs

Why Taiwanese wages grew slowly for years despite strong exports, why housing became unaffordable, and the effects on young people and birth rates.

Despite export success, many Taiwanese face economic frustrations.

Stagnant wages

  • Real wages grew slowly from the 2000s to mid-2010s.
  • Profits concentrated in a few tech firms, while others competed on low costs.
  • Many firms moved production to China, limiting wage gains at home.

Housing

  • Taipei home prices are among the least affordable in the world relative to incomes.
  • Young people struggle to buy homes.

Birth rates

Taiwan’s fertility rate is among the world’s lowest, around 0.9 in recent years.

Ageing

Taiwan became a “super-aged” society in 2025, with over 20 percent of people aged 65 and over.

Brain drain

Some young professionals move to China, Singapore or the US for higher pay.

Recent changes

Wages rose more in the 2020s as tech profits and labour shortages grew.

The Taipei flat

A young Taipei engineer finds that even a small flat costs many times her annual salary, so she keeps renting and delays marriage.

Thinking export booms raise everyone's wages

Taiwan's gains concentrated in a few firms for years.

Key takeaways
  • Taiwanese real wages grew slowly for years.
  • Taipei housing is very unaffordable.
  • Fertility is around 0.9, among the world's lowest.
  • Taiwan became super-aged in 2025.
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