Israeli Government Expands Housing Benefits for Reservists with New Discounted Units Plan

Ahead of upcoming elections, the Israeli government has unveiled an expanded housing initiative aimed at reservists, offering thousands of discounted apartments and plots. The plan, announced by Housing Minister Haim Katz, Finance Minister Bezalel Smotrich, and Prime Minister Benjamin Netanyahu on August 9, 2026, seeks to provide approximately 20,000 housing solutions over the next two years, including 16,000 subsidized apartments and 4,000 plots for building homes.

Previously, up to 50% of units in certain lotteries were allocated to active reservists, with half of that quota prioritized for combat soldiers. The new policy aims to increase reservists' allocation to 75%, with an additional 25% specifically for combat reservists, significantly improving their chances in housing lotteries. However, current public information still reflects a 50% allocation, so final details depend on forthcoming lottery rules and decisions by the Israel Land Authority.

The discounted apartments under the "Target Price" program offer an estimated saving of over 500,000 shekels, with Netanyahu citing benefits up to 550,000 shekels. Yet, actual savings vary by project, location, apartment size, and market conditions. Eligibility requires proof of reservist status and lack of homeownership. Buyers must consider additional costs such as financing, waiting periods, and market comparisons to assess the deal's value.

For those willing to build their own homes, the plan includes 4,000 plots in national priority areas, with full exemption from land payments in the highest priority zones. However, buyers still face substantial development costs, including infrastructure, permits, and construction expenses, which can reach hundreds of thousands of shekels. Building a home independently involves complex planning and financing challenges.

The rollout of these housing options will be gradual throughout 2026 and 2027, with no immediate guarantee that all 20,000 units will be available at once. Despite official statements promising housing for all eligible reservists who enter the lotteries, the actual availability and timing will depend on the pace of construction and auction schedules. The effectiveness of the program will ultimately be measured by how many units are released, their locations, prices, and how quickly winners can move in.