Housing and Energy Ministries Fail on Housing Prices and Green Energy
Translated & summarized from Zman Yisrael by baba
Israel's Ministries of Housing and Energy have been criticized for failing to address critical needs, leading to a surge in apartment prices and a lag in renewable energy development. Despite a major gas export deal, the Ministry of Energy missed renewable energy targets and faced planning deficiencies in the electricity sector. The Ministry of Housing saw apartment prices rise significantly, a stalled "Apartment at a Discount" program, and a focus on specific communities over general needs. Public housing waiting times also increased, and the overall housing market remains in crisis.
The story in 7 lines · by baba
- Apartment prices in Israel increased by 7.8% in 2024, despite high interest rates and a war.
- The "Apartment at a Discount" program for young couples stalled due to inter-ministerial disputes and legal challenges.
- Israel missed its 2025 renewable energy target, generating only 17% of electricity from such sources.
- The Ministry of Energy facilitated a $35 billion gas export deal with Egypt by 2040.
- Public housing waiting times extended to an average of 35 months.
- The State Comptroller found significant planning deficiencies in Israel's electricity grid.
- The Ministry of Housing prioritized allocating housing units for the ultra-Orthodox community.
Two key government ministries, Housing and Energy, have failed to meet basic household needs for housing and electricity, according to a review of their performance over the past four years. The Ministry of Housing, led by Yitzhak Goldknopf until his resignation in June 2025, saw apartment prices surge, particularly during the war years. Despite a record inventory of unsold apartments and a stalled "Apartment at a Discount" program, the minister focused on reallocating housing plans for the ultra-Orthodox community. Following Goldknopf's departure, Tourism Minister Haim Katz served as acting Housing Minister, splitting his time between two roles while the real estate sector faced a crisis.
Apartment prices, after a slight drop between October 2022 and October 2023, jumped 7.8% in 2024, remaining high despite increased interest rates. A significant factor contributing to this was a shortage of approximately 30,000 construction workers following the halt of Palestinian labor. The "Apartment at a Discount" program, intended for young couples, became entangled in disputes between the Finance Minister, Bezalel Smotrich, who proposed drastic reductions in the discount and scope, and Goldknopf, who sought to maintain existing conditions. The program's lottery system faced further delays due to legal challenges regarding the inclusion of draft evaders and preferential quotas for the ultra-Orthodox community.
The Ministry of Energy, under Eli Cohen, facilitated a major $35 billion gas export deal with Egypt by 2040. However, the ministry missed its renewable energy targets, with only 17% of electricity generated from renewables in 2025 against a goal of 20%. The State Comptroller reported that the electricity grid is not adequately planned for the future, and energy storage capacity is critically low. Despite the gas export deal, concerns remain about depleting reserves and future reliance on imports. The ministry also faced criticism for promoting appointments of associates, some of whom were disqualified by relevant committees due to lack of experience, including a candidate linked to the Meron disaster.
Furthermore, the State Comptroller's report from July 2024 highlighted significant deficiencies in public housing, with the number of eligible individuals waiting for housing increasing to approximately 4,300 and the average waiting time extending to about 35 months. The reduction in public housing stock continued, and no multi-year plan was formulated to expand it during the current government's tenure. Electricity tariffs also continued to rise, with planned increases announced for 2025 and 2026, subject to automatic updates based on currency and inflation rates.