Housing Program "Price for Me" Blamed for Rising Apartment Prices
Translated & summarized from Ice by baba
Nehama Bogin, Chairwoman of the Land Appraisers Association, has blamed the "Price for Me" housing program for driving up apartment prices due to its inefficient land allocation. She also called for revitalizing the long-term rental market. Rafi Elmaliach, Director General of the Planning Administration, advocated for consolidating housing authorities and addressing infrastructure to release approved urban renewal units. Other industry figures discussed challenges in urban renewal projects and the need for regulatory reform in the rental sector.
The story in 6 lines · by baba
- Nehama Bogin blames the "Price for Me" program for inflating housing costs by releasing land without economic criteria.
- Bogin urged reviving the long-term rental market, which she believes has been negatively impacted by rising interest rates.
- Rafi Elmaliach called for consolidating housing authorities to better manage the market and release approved urban renewal units.
- Elmaliach noted that 1.3 million housing units are approved in urban renewal but require infrastructure solutions.
- Tomer Tsaliah stated that 80% of "Pinui-Binui" urban renewal projects are economically unviable due to low profitability.
- Industry leaders discussed the need for regulatory reform and increased building rights to boost urban renewal and rental housing.
Nehama Bogin, Chairwoman of the Land Appraisers Association, has sharply criticized the government's housing policies, particularly the "Price for Me" (Mechir LeMishtaken) program and its iterations. She stated that these initiatives are a primary driver of rising apartment prices because they release land without economic criteria. Bogin argued that the state's expenditure on the program was disproportionate to the number of couples who truly benefited, suggesting the same budget could have helped them without inflating prices.
Bogin advocated for reviving the long-term rental market, which she believes has been hindered by rising interest rates. She asserted that long-term rentals should be common in Israel, as they are globally, despite a cultural preference for homeownership. She also dismissed claims of 85,000 unsold apartments as a "urban legend," urging focus on the number of ready, unsold units.
Rafi Elmaliach, Director General of the Planning Administration, called for consolidating housing authorities under a single minister, similar to the period under former minister Moshe Kahlon. He believes this unification would address the housing price crisis. Elmaliach noted that approximately 1.3 million housing units are approved in urban renewal plans and could be released to the market if infrastructure issues are resolved. He also mentioned an accelerated "green" track for urban renewal projects and a national master plan offering incentives for existing plans, such as a 20% value increase for adding housing.
Elmaliach also criticized the management of the rental market, pointing to the "Dira LeHaskir" company's limited success. He stressed the need for a regulatory body to incentivize the private sector to build more rental units and mentioned the Planning Administration's consideration of special land zoning for rental housing, which would involve lower purchase prices for developers.
Beni Arbiv, Chairman of the National Council for Planning and Construction, addressed the issue of betterment levies in urban renewal, calling the current uncertainty unacceptable and a problem for the next government. He suggested a fixed percentage of developers' sales revenue, not tenants', be transferred to local authorities as a potential solution.
Tomer Tsaliah, Vice President of the Contractors and Builders Association, stated that about 80% of "Pinui-Binui" (evacuate-and-build) urban renewal projects have lost economic viability. He explained that initial low profitability assumptions, based on rising prices, have not materialized, leaving hundreds of thousands of approved housing units stalled. Tsaliah proposed reducing public benefits and betterment levies, and increasing building rights to make these projects feasible.
Yanki Quint, former Director General of the Israel Land Authority, believes a dedicated housing authority is unnecessary, as managing housing is a fundamental responsibility of the government.