Israel's Subsidized Housing Programs Cost Nearly $11 Billion

Israel's subsidized housing programs have incurred costs and forgone revenue approaching 40 billion shekels (approximately $11 billion), according to the Ministry of Finance's 2025 financial report. Since 2022 alone, the combined expenses and lost land revenue related to these programs have exceeded 27 billion shekels. The support mechanisms primarily involve selling state land at reduced prices, subsidizing infrastructure development, and offering direct grants to eligible buyers.

Implementation of some housing projects has faced significant delays due to lengthy planning, permitting, and construction processes. A key feature of some programs, like "Price for a Home" (Mechir le-Mishtaken), allowed buyers to resell subsidized apartments at market rates after a mandatory ownership period. Current regulations for the "Apartment in the Future" (Dira be-Anacha) program restrict sales for five years from receiving occupancy approval or seven years from the lottery date, whichever is earlier.

The "Dira be-Anacha" program, active in 2026, consolidates several previous government schemes, including "Mechir le-Mishtaken," "Mechir Mufhat," and "Mechir Matara." Priority in initial lotteries is given to first-time homebuyers, while those looking to upgrade may only qualify for subsequent lotteries. In July 2026, the Ministry of Construction and Housing held the 11th round of this program, offering 7,922 apartments across 19 locations to 114,848 households.

The "Mechir le-Mishtaken" program, initially launched in the mid-2010s, reduced apartment costs by offering state land at preferential rates. Subsequent iterations and name changes have maintained the core principle of government discounts for qualifying buyers, though the mechanisms have been adjusted over time.