Taipei tops household rent to income ratio with 58%

Taipei, While the average household rent to income ratio in Taiwan's six municipalities is 23.9%, Taipei tops the list with 58%, according to a recent survey by Taiwan Labour Front.

Hung Ching-shu (???), head of Taiwan Labour Front's survey department, said at a press conference on Thursday that tenants in Taipei face a heavy financial burden.

People in the capital city earning the minimum hourly wage of NT$140 have to work 321.4 hours and pay virtually every dollar they earn to rent an apartment costing NT$45,000 per month.

To afford a room costing NT$12,000 a month, tenants on the minimum wage in Taipei have to work 85.7 hours.

Even in Tainan and Kaohsiung with the lowest average rent, people making the minimum hourly wage still need to work 120 hours to be able to rent an apartment.

Taiwan's housing market has long-term "high housing prices, high home ownership rate, high housing vacancy rate and plenty of tenants," said Hung.

Hung suggested the government should raise the national minimum wage to offer families more housing options, and said the housing market should be more diverse in terms of supply, for example by providing more social housing complexes.

The survey collected 67,506 pieces of data from April 24 to May 11 on the housing platform 591.com.tw. Its figures are based on the median rent and the 2016 median household income. Taiwan Labour Front released the result in the press conference.

Based on the 30-percent-of-income rule, Taiwan Labour Front said a laborer on the minimum wage can afford to pay a maximum rent of NT$6,600.

Source: Focus Taiwan News Channel