Israel Scraps Discount Housing Program for Haredim, Offers New Tender

Israel has canceled its "Apartment with a Discount" housing program for the Haredi (ultra-Orthodox) sector, a plan initially announced in March 2023 to allocate hundreds of subsidized apartments. A major tender for 727 apartments in the city of Beitar Illit was repeatedly postponed and was set to be released in 2026.

The decision to exclude the Haredi sector from the program was finalized through a High Court of Justice ruling. The court stipulated that individuals who evaded IDF service would be ineligible for the lottery, and those who had previously participated would not be allowed to enter again. The Ministry of Justice delayed the program's opening, resulting in over 7,000 apartments being marketed late. The Ministry of Construction and Housing recently closed the program's website to clarify eligibility criteria.

In a revised approach, the state will now market land for 1,074 housing units, including commercial spaces, with a focus on the Haredi community. While the tender will be open to all bidders, the Israel Land Authority intends to make adjustments to accommodate the Haredi public. This new tender is for land in Beitar Illit, a city located approximately 8 kilometers southwest of Jerusalem, which is considered a settlement.

Beitar Illit is the second-largest city in the West Bank with over 73,000 residents, nearly two-thirds of whom are under 18 due to large family sizes. The tender includes four development areas, with the largest designated for 359 housing units, incurring development costs of approximately 226 million shekels. Current housing prices in Beitar Illit range from 19,000 to 21,000 shekels per square meter, which is below the Israeli average. Developers have begun marketing larger, six-room apartments, with prices exceeding 3 million shekels and sometimes reaching over 4 million shekels for units between 139-164 square meters. Detached homes are priced between 4.5 and 5 million shekels.