Israeli Housing Cabinet to Set Annual Construction Targets for First Time Amid Market Crisis
Amid an ongoing real estate crisis, Israel's Housing Cabinet is set to convene within the next two weeks for the first time in over a year. According to a draft agenda obtained by ynet and Mamon, the government plans to establish an official annual housing construction target of 75,000 units for 2026, marking a historic first.
The draft decision also outlines additional quantitative goals across the housing production chain, including submission of plans, land marketing, transaction completions, and construction finishes. Specifically, the Ministry of Construction and Housing and the Israel Land Authority (ILA) will be tasked with submitting plans for 65,000 and 55,000 housing units respectively in 2026. Targets also include marketing 55,000 units by the ILA and 40,000 by the Ministry, alongside 65,000 residential land transactions.
Further objectives include completing 65,000 housing units in 2026 and reducing average construction time to 30 months by 2030. The government aims to approve 115,000 housing units in planning stages that year. Additionally, at least 8,000 units are to be marketed in minority communities, in line with existing government decisions.
Housing Ministry Director-General Yehuda Morgenstern described the new construction start targets as part of a broader government shift to address the housing market comprehensively, beyond just land marketing. He noted that previous cabinet decisions set five-year marketing targets through 2030, and now the focus expands to include construction starts and completions. Morgenstern also emphasized the importance of the rental market in solving the housing crisis, acknowledging that the previous long-term rental model collapsed due to rising interest rates. The ministry is developing a new model with dedicated long-term rental products, adjusted land values, and encouragement of institutional rental markets. Rental targets will be incorporated into the 2027 budget and legislation.
This meeting and the new targets represent a systematic and measurable approach to increasing housing supply and addressing Israel's housing challenges in the medium and long term.
