Israeli Election Promises on Housing Remain Unfulfilled
Translated & summarized from Globes by baba
Israeli political parties consistently promise housing solutions like faster permits and more public housing, but implementation has been slow and ineffective. Despite legislation and government programs, key issues like bureaucratic delays, insufficient long-term rentals, declining public housing stock, and the continued power of the Israel Land Authority persist. While recent housing prices have seen a slight decrease, they remain unaffordable for many, and rental costs are rising, indicating the ongoing housing crisis.
The story in 6 lines · by baba
- Israeli election promises on housing, including faster permits and more public housing, have largely failed to impact the market.
- Bureaucratic delays continue to hinder new housing construction despite legislative efforts.
- Long-term rental initiatives have provided limited housing stock relative to demand.
- Public housing availability has decreased, with insufficient new acquisitions to compensate for sales.
- The Israel Land Authority's central role in land management remains unchanged despite promises of reform.
- Housing affordability remains a critical issue, with rising rents and high prices for new apartments.
Despite recurring election cycles, Israeli political parties across the spectrum consistently offer similar housing solutions, yet tangible progress remains elusive. Promises to streamline planning, increase supply, aid eligible citizens, and reform land management have led to some legislation and government programs, but their implementation has often been slow, partial, or insufficient to impact the broader market. Five key promises illustrate this pattern: simplifying bureaucratic processes, promoting long-term rentals, expanding public housing, assisting young couples, and weakening the Israel Land Authority (ILA).
Efforts to shorten planning and licensing procedures, such as amendments to the Planning and Building Law in 2014 and 2021, have fallen short of their goals. Despite aiming to reduce approval times to 90 days, average processing times in 2019 were closer to a year. Similarly, a program allowing experienced architects to approve permits has seen minimal uptake, with only ten permits and 48 housing units approved by February 2026.
Initiatives to establish a long-term rental market, like the "A Dira Lehashchir" government company founded in 2013, have also yielded limited results. While the company has marketed around 37,000 units, fewer than 19,000 deals have been finalized, with just over 5,000 units occupied. This scale is insufficient to significantly influence the overall rental market.
Expanding public housing has seen a decline in available units, from approximately 65,400 in 2011 to 47,100 in 2024, due to sales to eligible residents and limited new acquisitions. A plan to increase public housing stock has lacked defined budgets and clear implementation, with only about 1,043 new units purchased between 2022 and 2024, failing to offset the overall decrease.
Assistance for young couples through programs like "Dira Behanacha" (discounted housing) offers significant benefits to a select few via lotteries, but does not reverse the overall trend of declining homeownership, which fell to 65.1% in 2020. The promise to dismantle or weaken the ILA, a central authority managing 90% of Israel's land, has also not materialized, with the authority retaining its monopoly despite promises from parties like "Kulanu" and "Likud."
Currently, housing is a less prominent issue in election platforms. While Prime Minister Netanyahu claims his government lowered housing prices by 1.8% in the past year, the average price of a new apartment remains high, requiring substantial down payments and mortgages. Rental prices have also increased, with new tenants paying 5.2% more than previous occupants, and efforts to regulate the rental market have stalled.
Mentioned
