Tel Aviv Surpasses Jerusalem in New Housing Starts Amid Construction Slowdown

Tel Aviv has overtaken Jerusalem as the city with the highest number of new housing construction starts, according to recent data. Between July 2025 and June of the current year, Tel Aviv recorded 7,611 new housing units beginning construction, surpassing Jerusalem's 5,440 units during the same period. Haifa secured the third position with 3,085 new units, marking a significant rise for the city due to urban renewal and new projects.

Despite a high volume of building permits and initial construction starts, the latter stages of construction are experiencing delays. The latter half of the year has seen a decline in the completion of new housing units. Data from the Central Bureau of Statistics indicates a 9.7% decrease in completed housing units in the second quarter of the year compared to the first quarter.

While the number of active construction sites reached a record high of 217,200 units by the end of June, an 8% increase from the previous year, this surge is attributed to a saturation point in the construction industry's capacity to complete projects. This bottleneck is leading to delays in apartment delivery.

Government efforts to expedite planning and permit issuance continue, but experts suggest the core issues lie not in bureaucratic processes but in labor shortages and outdated construction technologies that hinder the industry's growth and efficiency. The article notes that while the problem has been developing since the COVID-19 pandemic, it may have been exacerbated since the outbreak of the war.