Discount Housing Program Winners Reap Millions in Israel

Recipients of Israel's "Price for the Resident" (Mechir Lemishtaken) discounted housing program in Even Yehuda have seen their apartments appreciate dramatically, with some potentially gaining over 3 million shekels. The program, designed to offer affordable housing, sold apartments in Even Yehuda at 10,000 shekels per square meter, significantly below the market rate of over 30,000 shekels per square meter in the desirable Sharon region.

Despite the significant financial gain, many participants faced considerable hardship. Those who won apartments in 2019 experienced delays, with construction only beginning in 2023, four years after their win. During this period, many had to rent other apartments, incurring costs of over 300,000 shekels before construction and potentially up to half a million shekels by the time of delivery. The state will not reimburse these rental expenses.

Recent sales in Even Yehuda illustrate the massive appreciation. A 188-square-meter, 6-room apartment sold for 4.9 million shekels, while a 107-square-meter, 5-room unit fetched 3.19 million shekels. Even smaller 3-room apartments, initially sold for around 812,000 shekels, are now estimated to be worth close to 3 million shekels, more than tripling in value.

The article suggests that the "Price for the Resident" program, particularly in prime locations like Even Yehuda and Glil Yam, may have been a misstep by the government. Instead of targeting disadvantaged populations in peripheral areas, the program allocated desirable properties in sought-after locations, leading to substantial profits for winners. The average household income in Even Yehuda is reported at 36,000 shekels gross, indicating that many winners may not have been the intended beneficiaries of subsidized housing.

Most apartment owners in Even Yehuda are reportedly not selling their units, recognizing their significant asset value in a high-quality community. The appreciation is attributed to both the initial discount and the natural rise in property values in the area, making these apartments a "gold mine" for their owners.