Social Housing and Residential Justice

30-Second Overview

Housing is a fundamental human need and an important responsibility of the government. Since 2016, Taiwan has promoted the "8 Years, 200,000 Households Social Housing" policy, striving to achieve "residential justice" through both direct construction and rental management. This policy attempts to reconstruct the nature of housing, transforming it from a mere commodity back into a guarantee of the right to live.

The government estimated at the end of 2023 that by the end of 2024, there would be 120,000 units directly constructed and approximately 94,000 units under effective rental management contracts, totaling about 214,000 units, achieving a rate of 107%. However, high housing prices and the rental crisis have not dissipated; the role and limitations of social housing remain core issues in Taiwan's policy debate.

Keywords: social housing, residential justice, rental management, housing law, youth settlement, vulnerable residents

Why It Is Important

Housing is the foundation for people to settle down, establish families, and pursue their dreams. When the price-to-income ratio in Taipei City exceeds 16 times, many young people fall into a dilemma of "unable to afford, unable to rent," making social housing a key policy tool for responding to residential justice.

The significance of social housing policy is not just about building houses. It represents a choice: allowing economically vulnerable groups to enjoy an appropriate quality of living, providing opportunities for youth to settle down, and driving the improvement of old communities through urban renewal.

From an international comparative perspective, Taiwan's proportion of social housing is still relatively low, but the rapid expansion since 2016 has moved this issue from the periphery to the mainstream of policy.

• Social Equity: Allowing economically vulnerable groups to enjoy appropriate living quality
• Intergenerational Justice: Providing opportunities for youth to settle down without bearing heavy mortgage burdens
• Urban Development: Guiding urban regeneration and improving the environment of old communities
• Social Harmony: Reducing social conflicts caused by housing issues

The Current State of Housing in Taiwan

Residential Dilemma in the Era of High Prices

According to the Ministry of the Interior's Q4 2024 statistics, the price-to-income ratio in Taipei City is 16.43 times, in New Taipei City it is 14.08 times, and in Taoyuan City it is 9.22 times, with a national average of 10.76 times¹. In other words, an average family in Taipei would need to save for over sixteen years before being able to afford a house, forcing many young people into the rental market.

However, the rental market also has numerous problems: high rates of black-market rentals, landlords generally not filing taxes, opaque rents, and widespread short-term leases, with insufficient protection for tenants' rights. These two dilemmas overlap, making housing one of Taiwan's most pressing social policy issues.

Housing Needs of Special Groups

• Youth: Salaries cannot keep up with housing prices, making homeownership distant
• Single-parent Families: Heavy financial burdens, limited rental choices
• Elderly: Decreasing fixed income, facing residential risks
• Persons with Disabilities: Requiring accessible environments, options are scarcer

Background of Policy Evolution

Early Housing Policies (1950–2010)
Taiwan's early housing policies focused mainly on "encouraging home purchases":

• National Housing Agency policy: Building national residences and selling them at preferential prices.
• Preferential purchase loans: Supporting home buying through financial policies.
• Tax rebates for resale, first-time buyer incentives: Tax incentives encouraging home ownership.
• Problem: The main beneficiaries were the middle class, with limited benefits for vulnerable groups.

The Enactment of Housing Law (2011–2016)
The Housing Act was enacted in 2011, establishing a new direction for housing policy:²

• The legislative purpose was to allow all citizens to live in suitable housing and enjoy dignified living environments.
• Establishing the legal basis for social housing.
• Promoting rental subsidy systems.
• However, implementation has been insufficient, leading to slow construction of social housing.

Social Housing Policy Content

The 8 Years, 200,000 Households Plan

After the new government took office in 2016, the "8 Years, 200,000 Households Social Housing" policy was proposed:³

Policy Goals

• To construct 200,000 social housing units between 2017 and 2024.
• Direct construction of 120,000 units.
• Rental management for 80,000 units.

Implementation Strategies

1. Central-Local Cooperation: The National Housing and Urban Renewal Center (NHURC) coordinates planning.
2. Diverse Land Sources: State-owned land, urban renewal returns, donations, etc.
3. Innovative Financing Mechanisms: Housing funds, special budgets for forward-looking infrastructure.
4. Professional Team Execution: Establishing dedicated agencies to improve execution efficiency.

Dual-Track Model

Track One: Direct Construction
The government directly constructs, owns, and manages social housing:

• Construction target: 120,000 units.
• Funding source: Housing funds, special budgets.
• Management method: Government direct operation or contracted private management.
• Feature: Better quality control, capable of planning complete community functions.

Track Two: Rental Management
The government cooperates with private landlords to match vulnerable tenants:

• Target number of households: 80,000 units.
• Operating model:
  • Rental: The government leases private properties and then sublets them to vulnerable groups.
  • Management: Assisting landlords in renting out properties and providing management services.
• Advantage: Revitalizing vacant housing and rapidly increasing the supply of social housing.

Execution Results Statistics

Policy Statistical Scope

• The government estimated in December 2023 that by the end of 2024, there would be 120,000 units directly constructed and 93,980 units under effective rental management contracts, totaling 213,980 units, achieving a rate of 107%⁴.
• "Achievement" is the policy statistical scope; direct construction includes units under construction, those with awarded bids awaiting commencement. Taking the Ministry of the Interior's statistics as an example, by the end of August 2026, the number of directly constructed units achieved includes 47,111 completed, 65,202 under construction, and 15,380 with awarded bids awaiting commencement⁵. "Completed" refers to newly built social housing that has obtained an occupancy permit.

Social Housing Design Philosophy

The design philosophy of Taiwanese social housing starts from "social integration," deliberately avoiding the problems of poverty concentration seen in Hong Kong public housing or American social housing, allowing residents from different backgrounds to live together.

Principle of Social Integration

Article 4 of the current Housing Act stipulates that at least 40% of social housing must be rented to economically or socially vulnerable groups, and at least 20% must be rented to married couples who have had children within two years of marriage². The scope of vulnerable groups is broad, covering low-income households, families in special circumstances, families with two or more minor children, the elderly, victims of domestic violence, persons with disabilities, indigenous peoples, disaster victims, etc.

Scope of Vulnerable Groups
According to the definition in the Housing Act, this includes:

• Low-income and low-to-middle-income households.
• Families in special circumstances.
• Households with two or more minor children.
• Individuals who cannot return home after placement in care institutions or foster families, under the age of twenty-five.
• Elderly persons aged 65 and over.
• Victims of domestic violence or sexual abuse and their children.
• Persons with disabilities.
• Individuals infected with Human Immunodeficiency Virus (HIV) or suffering from Acquired Immune Deficiency Syndrome (AIDS).
• Indigenous peoples.
• Disaster victims.
• Nomadic people.
• Minors facing difficulties due to pregnancy or childbirth.
• Others certified by competent authorities.

Community Facility Planning

Essential Facilities

• Accessible environment: Ramps, elevators, unit design for accessibility.
• Kindergartens: Prioritizing the establishment of non-profit kindergartens.
• Long-term care centers: Daycare centers, care points.
• Community activity spaces: Meeting halls, reading rooms.
• Commercial facilities: Convenience stores, laundromats, etc.

Innovative Design

In recent years, social housing has continuously experimented with innovative facilities. Youth creation spaces provide studios for young entrepreneurs, and shared kitchens promote resident interaction. Rooftop farms combine urban agriculture and environmental education, while resource recycling centers promote the concept of a circular economy. Some new projects also introduce IoT devices to build smart community management platforms.

Rent Affordability Principle

Social housing rent must not exceed market rates; fees are charged based on the tenant's income and status. The Ministry of the Interior’s grading principle is that the basic rental structure is 30% to 80% of the market rate, with further discounts applied in some areas of Greater Taipei due to higher local prices. Local governments can charge based on income or status, but not exceeding the standard set by the central government⁶.

Important Social Housing Cases

Taiwanese social housing cases demonstrate various attempts from design philosophy to community building. Many new projects integrate public facilities such as kindergartens, long-term care centers, and youth entrepreneurship spaces into social housing, forming complex community living circles. This planning mindset of "social housing as a community" has gradually influenced the design direction of subsequent projects.

Health Public Housing in Taipei City

Health Public Housing in Taipei City, located on Jiankang Road, Songshan District, consists of 507 units and includes an elderly service center, an elderly daycare center, and a nursery at low floors⁷.

Rental Management Policy

Rental management is the second track of Taiwan's social housing policy. It involves government intervention in the private rental market to rapidly increase the supply of social housing while revitalizing vacant housing resources. The Executive Yuan estimated in August 2023 that there would be approximately 68,000 effective contracts under rental management by the end of the year⁸.

Operating Model

Rental Mode
The government leases private properties through professional vendors and then sublets them to vulnerable families:

• Lease term: The vendor signs a 3-year lease with the landlord, and then signs a minimum 1-year sublease contract with the tenant in the capacity of a sublessor.
• Rent: The rental price signed by the lessee must not exceed 80% of the market rate; the rent sublet to the tenant must not exceed the leasing rent, and tenants can apply for rental subsidies based on their status⁹.

Management Mode

The government matches landlords and tenants, with professional vendors responsible for screening tenants, collecting rent, and coordinating repairs. The rental price signed by the landlord and tenant must not exceed 90% of the market rate⁹. The government provides subsidies for repair costs (up to NT$10,000 per household annually for a maximum of 3 years), property tax and land tax reductions, voluntary enrollment in home safety insurance, and dispute resolution and legal consultation to reduce the landlord's rental risk.

Implementation Mechanisms and Results

Major challenges include: some landlords being unwilling to participate due to concerns about tenant quality; housing stock concentrated in urban areas; extreme vulnerable families still facing burdens with current rents; and significant differences in service quality among vendors.

Policy Effects and Social Impact

Quantitative Effect Analysis

There is currently no verifiable official overall evaluation of the quantitative effects of social housing policy. What is certain is that direct construction and rental management have increased the supply of affordable rental housing and brought more private rental properties into contractual channels.

Social Impact Assessment

Achieving Residential Justice

The living quality of newly constructed social housing is generally superior to typical rentals, community facilities are well-planned, and rent levels are relatively more affordable than the market, providing longer-term residential security. For groups who have been vulnerable in the rental market for a long time, this is a tangible improvement.

Social Integration and Urban Development

The integrated design allows vulnerable and general families to live together, preventing the concentration of poverty. Some social housing cases have also driven the development of surrounding commercial areas, becoming catalysts for urban regeneration in old communities and improving overall community environmental quality.

International Experience Comparison

Singapore's Housing System

Singapore is famous for government-led, large-scale construction of public housing (HDB), where about 76% of residents (citizens and permanent residents) live in HDB flats¹⁰. The ethnic quota system promotes racial integration, and the pension system encourages home ownership. Taiwan can learn from its long-term stable policy implementation and complete community planning concept, but Taiwan places more emphasis on renting than purchasing, leading to overall differences.

Dutch Social Housing

Housing associations in the Netherlands own about 2.3 million homes, accounting for about 28% of national housing (as of early 2024, CBS)¹¹, which are built and managed by non-profit housing associations, ensuring fair distribution through an income grading system. The Dutch emphasis on building design quality and environmental sustainability offers Taiwan a reference point in terms of quality orientation.

Hong Kong Public Housing

About 45% of the population in Hong Kong lives in public housing, which is divided into rental public housing and private rental housing. Taiwan consciously distinguishes itself from the Hong Kong model: it places more emphasis on social integration to avoid large-scale concentrated development while focusing on complete community facility support to prevent "poverty concentration."

Future Challenges and Development

Major Challenges

Social housing policy faces four major structural challenges. Land acquisition is the first hurdle: urban land is scarce and expensive, landowners are reluctant to cooperate, urban planning amendment procedures are complex, and local resistance ("NIMBYism") regarding "social housing built nearby" makes site selection extremely difficult. Financially, rising construction costs, long-term operating expenses, and pressure on the housing fund also put strain on government budgets.

Some residents still hold stereotypes of social housing being a "slum," worrying about the impact on surrounding property prices, and community integration requires time and continuous communication. At the management level, issues such as cohabitation with diverse needs, maintenance costs for community facilities, and high resident turnover rates place high demands on the professional capabilities of the management team.

Future Development Directions

Policy suggestions from industry cover several directions: amending the Housing Act, strengthening legal foundations, and promoting a dedicated social housing law are priority institutional tasks. In terms of financing innovation, introducing private capital and developing Social Housing REITs and land trust systems can help expand resource sources. The promotion of smart management (IoT systems, community app integration) and green building certification is a path to improving quality. Regional balanced development also warrants attention: currently, social housing is highly concentrated in the six metropolitan areas, and the housing needs of non-urban areas require more policy attention.

Conclusion: Moving Towards Residential Justice

Social housing embodies the practice of social values, not merely a housing policy. Since 2016, Taiwan has promoted the 8 Years, 200,000 Households Plan, which has not only approached its quantitative targets but has also established a "Taiwan Model" in terms of quality:

The characteristic of Taiwanese social housing lies in several core choices: avoiding poverty concentration through integrated design, complementing direct construction and rental management tracks, emphasizing design aesthetics and community functions, and being localized according to Taiwan's climate and cultural characteristics. Although this "Taiwan Model" is still undergoing refinement, it has formed a recognizable policy path.

Future Vision
To ensure that every person living in Taiwan can enjoy a suitable, stable, and dignified living environment, regardless of their economic status. Only by achieving this goal can Taiwan build a fairer and more inclusive society.

The realization of residential justice requires the collective effort of all society. The government provides the policy framework and resources; professionals contribute technology and creativity; and the public offers understanding and support—only then can social housing truly play its role in advancing Taiwanese society.

Further Reading:

• National Housing Agency and Residential Justice — The "Government Builds to Sell" path before 2016: From the National Housing Act of 1975 to its abolition in 2015, how national housing became an asset escalator, and the contemporary struggle in Taoyuan for affordable housing (a sister article).
• Tin Sheds — The governance dilemma of 716,000 illegal structures across Taiwan; tin roofs and illegal construction are underlying structural issues of residential justice.
• Taiwan Environmental Justice and NIMBY Disputes — Land use extension of housing issues: unequal distribution of environmental risks and community conflicts over facilities.

References

1. National Land Administration Agency, Social Housing Promotion Results Report, December 2024.
2. National Housing and Urban Renewal Center, Social Housing Construction Plan Execution Results, 2024.
3. Executive Yuan, _Social Housing Construction Plan_, Approved March 2017.
4. Housing Act (2017 Amendment), National Law Database.
5. Urban Renewal Research and Development Foundation, Urban Renewal Promotion Results Statistics, 2024.
6. Wikipedia, "Social Housing in Taiwan" entry, March 2024 version.
7. Urban Renewal All Know, "Direct Construction and Rental Management Numbers Hit New Highs" report, 2024.
8. Taipei City Urban Development Bureau, Social Housing Policy White Paper, 2023.
9. New Taipei City Township Development Bureau, New Taipei City Social Housing Development Plan, 2024.
10. Taoyuan City Housing Development Office, Taoyuan City Social Housing Promotion Results, 2024.
11. TMM Foundation, "Rental Market Status Survey Report", 2024.
12. Social Housing Promotion Alliance, Social Housing Policy Proposal, 2023.