In the 1980s, Taiwan has gone through a wave of serious house price increases. However, the homeownership rate still moderately increased. In this research, we used household data from the “Housing Survey”of 1982 and 1993 to analyze factors that affect the home ownership rate changes in the 1980s. A probit model is used to estimate the tenure choice model for these two years respectively. The model estimation verified our theoretical expectation that when the cost of owning a home relative to rent increases, people tend to rent and when there is an expectation of house price appreciation, people tend to own. In addition, model estimation also found that permanent income increases, increases in the age of the household head and increases in household size all increase the probability of owning a home. In analyzing the home ownership rate cahanges in this 11-year span, the effect of changes in the value of variables and changes in preferences (i.e. the changes in the coefficients)are decomposed. We found that the effect of house price increases on the relative cost of owning a home and the expectation of appreciation are almost cancel each other out in terms of affecting the home ownership rate. On the other hand, the extent the relative price for owning and renting affects the ownership probability decreased during these 11 years (i.e.,the absolute value of the coefficient decreased), which contributes significantly to the ownership rate increase. Income increases during this period increased the ownership rate, however, it just about to cancels the coefficient changes. Finally, the changes in the demographic variables and their coefficients are also close to canceling each other out.