Israel's Land Authority Faces Decade Low in Housing Starts Amid Political Infighting
Translated & summarized from Calcalist by baba
Israel's Land Authority is experiencing its worst land marketing year in a decade, with plans for only 21,000 housing units by early 2026. This slowdown is linked to developer costs and reduced demand, potentially increasing future housing prices. The authority has been without a permanent director for ten months due to a political dispute between Finance Minister Bezalel Smotrich and Prime Minister Benjamin Netanyahu over the appointment of an acting director, Yehuda Eliyahu.
The story in 6 lines · by baba
- Israel Land Authority faces decade-low housing starts with only 21,000 units planned by early 2026.
- The slowdown is attributed to rising developer costs and decreased demand, risking future price hikes.
- The authority has lacked a permanent director for ten months due to a political dispute.
- Finance Minister Bezalel Smotrich is pushing to appoint his associate Yehuda Eliyahu as director.
- Acting director Yehuda Eliyahu faces legal hurdles and a disciplinary hearing.
- State revenues from land sales are projected to significantly decrease.
The Israel Land Authority (ILA) is on track for its weakest year in a decade for marketing land for housing construction, with only about 21,000 housing units planned as of early 2026. This slowdown, attributed to rising financing costs for developers and decreased demand, threatens to drive up housing prices in the future.
The ILA's marketing of land for residential construction has plummeted from a record high of approximately 81,000 units in 2022 to about 60,000 units in 2025. The current pace suggests 2026 could be the weakest year in ten years, significantly impacting state revenues, which are projected to be only a few billion shekels compared to 10 billion shekels in 2022.
Adding to the instability, the ILA has been without a permanent director for ten months. This prolonged vacancy is reportedly due to a political dispute between Finance Minister Bezalel Smotrich, who is pushing to appoint his long-time associate Yehuda Eliyahu, and Prime Minister Benjamin Netanyahu, who has been unable to oppose the appointment.
Eliyahu's tenure as acting director is set to expire in three days, and extending it is legally complicated due to the maximum six-month limit for acting appointments and ongoing disputes. Housing Minister Haim Katz has also initiated a hearing process against Eliyahu for alleged misconduct, including canceling a workers' event due to women singing and ignoring directives on senior appointments.
The ILA, a significant body managing state lands and involved in major infrastructure projects, is suffering from this leadership vacuum. The article criticizes the government's failure to establish a proper selection process for a qualified leader, instead engaging in a power struggle that paralyzes the authority.
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