In Taiwan, home ownership has been seen as a privilege of military and civil officers since the R.O.C. government moved to Taiwan in 1949. Taiwan has become a more democratic regime since martial law was repealed in 1987 and presidential election by popular votes was initiated in 1996. Using documentary data, this paper aims to relate the transition in housing policy to Taiwan’s political transition from authoritarianism to democracy. We found that after the lifting of martial law, a growing number of social movements were triggered in response to political democratization. Since then, concerns and debates have started on how to revise the housing legislation to promote the welfare and social inclusion of vulnerable groups. A new housing policy that was influenced by the advocacy efforts of an action group was developed in May 2005 to meet social needs and achieve social equity.