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.
A young Taipei engineer finds that even a small flat costs many times her annual salary, so she keeps renting and delays marriage.
Taiwan's gains concentrated in a few firms for years.
- 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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