Israel's Public Housing Stock Sees Modest Growth After Decade of Decline

Israel's public housing sector experienced its first increase in available units in over a decade by the end of 2025, adding just 156 new apartments to reach a total of 47,299. This marginal growth of approximately 0.3% follows a period where the number of public housing units decreased while the number of eligible applicants rose. The average waiting time for public housing has decreased from 44 months to 38 months, slightly over three years.

Public housing involves state-owned apartments rented to eligible individuals at subsidized rates, determined by factors like income, family size, and location. This differs from rental assistance, where the state subsidizes rent for private market apartments. Eligibility for public housing is stringent, requiring applicants to meet specific criteria such as being defined as "housing deficient" and fulfilling conditions related to family size, income levels, and disability status. Separate criteria exist for the elderly and new immigrants.

While waiting for an apartment, eligible individuals can receive increased rental assistance in the private market. In 2025, a program offered up to approximately NIS 3,990 monthly for those waiting, allowing them to choose their own rental. Another option, "Stable and Secure Rental," allows eligible individuals to opt for private rental assistance instead of waiting for public housing, though only 268 households chose this in 2025.

In 2025, an average of 106,349 low-income households received monthly rental assistance, costing the state about NIS 1.51 billion annually. The amount varies significantly, averaging around NIS 1,180 per household monthly. The government allocated NIS 450 million for the regular acquisition and improvement of public housing stock, as a law allowing tenants to purchase their public housing units at a discount expired in February 2023.

The primary challenge remains the limited stock. Between 2014 and 2022, Israel sold about 12,900 public housing units while acquiring only 3,100. While the stock grew slightly in 2025, and 6,386 units were integrated into urban renewal projects between 2021 and 2025, the overall increase is minimal compared to the tens of thousands of families reliant on housing assistance.