Ultra-Orthodox Cities Lead Israel in New Construction, Lag in Urban Renewal

Cities with large ultra-Orthodox populations are leading Israel in overall new construction starts, but show virtually no activity in urban renewal projects like "Pinui-Binui" (evacuate and build) or Tama 38.

In contrast, major cities such as Tel Aviv, Petah Tikva, Bat Yam, Jerusalem, and Netanya continue to dominate urban renewal initiatives, accounting for the majority of such projects. For instance, Givatayim stands out with 92.3% of its construction starts, totaling 706 housing units, dedicated to urban renewal.

However, when examining cities with the highest number of new construction starts outside of urban renewal, Elad leads with 831 units, followed by Ofakim with 795, Netivot with 643, and Tiberias with 466. None of these cities have initiated any urban renewal projects. This suggests a trend where cities prioritizing urban renewal may be building fewer conventional housing units.

Analysis by "Magdim" indicates that cities like Beit Shemesh (340 units), Kiryat Malachi (214), Eilat (208), and Shoham (197) also show significant construction activity without urban renewal components.

The disparity is attributed to economic factors. Developers find urban renewal projects less viable in peripheral areas due to lower land prices and similar construction costs, which necessitate a higher multiplier of new units for each demolished unit to ensure profitability. When building rights are insufficient, developers abandon these projects, leading to the absence of urban renewal in these locations. This phenomenon is particularly evident in cities with more traditional populations, including the ultra-Orthodox communities of Elad and Beit Shemesh.