Government-led housing modernisation on Taiwan’s Lanyu Island during martial law aimed to replace traditional Tao homes with concrete structures, but instead created lasting harm. The policy led to displacement and social disruption for the Tao people, as the new housing was poorly constructed and lacked adequate support. Families faced debt and were left with incomplete homes, increasing inequality and undermining traditional community bonds. The reconstruction efforts failed to provide sufficient assistance, exacerbating mental health issues within the community. This poorly implemented modernisation project continues to be a source of intergenerational trauma for the Tao. The story highlights the long-term consequences of insensitive housing policies on Indigenous populations.