Will Rising Mortgage Rates Push Rents Up?

First, what can be confirmed at this point. The nationwide rent index rose from 109.01 in July 2025 to 110.91 in July 2026, up 1.7% year on year. The same compilation shows the nationwide residential price index fell from 149.03 in Q1 2025 to 143.85 in Q1 2026, down 3.5% year on year, and the report says home prices and rents are moving in different directions. The two indexes cover different periods and should not be compared directly.

On the reasons for rising rents, Zhuang Simin, assistant manager of CTBC Real Estate's research office, offered three points. First, taxes such as the housing hoarding tax and the land value tax raise landlords' holding costs, and part of those costs may be passed on to tenants. Second, inflation in recent years has increased spending on renovation, furniture, appliances and home repairs, adding pressure to raise rents. Third, with high barriers to buying a home and heavy mortgage burdens, many young people choose "renting instead of buying," and with demand exceeding supply, rents rise accordingly.

Of these, the third point is the closest to mortgages. What Zhuang Simin discussed is the "mortgage burden"; she did not explain the relationship between mortgage rates and rents, and no data shows how closely the two move together.

On mortgage rules, the Central Bank's electronic bulletin board lists that on September 17, 2026, the central bank amended the "Central Bank's Regulations on Financial Institutions' Handling of Real Estate Collateral Loan Business." Details such as loan-to-value ratios and eligible borrowers require reading the original central bank announcement, and there is currently no data on how this amendment affects rents.

Rent performance also varies by area. Zhuang Simin said the nationwide rent index reflects the overall market, and rents in different counties, cities, districts and housing types may still differ significantly; demand for rentals is relatively strong in Taipei and New Taipei, in major metropolitan areas, and in locations near MRT stations with well-developed amenities. The Ministry of the Interior also stated that rents in online rental listings are landlords' asking prices, not actual deal rents in the market, and that residential rents mainly depend on property conditions and market supply and demand.