Government unveils new plan to alleviate Israel’s housing crisis

The government unveils its housing plan, aiming to quickly increase the number of apartments to lower prices and alleviate the ongoing crisis that has seen prices rise by 8% over the past year.

The ministries of finance, construction and interior say in a joint statement that the 2022-2025 plan will shorten the bureaucratic process and overhaul Israel’s real estate landscape.

The plan sets a target of starting construction of 280,000 homes over the next four years — significantly more than in recent years — passing plans for 500,000 more housing units, publishing tenders for 300,000 homes on state-owned land, and having 180,000 successful such tenders.

The plan will invest NIS 8 billion ($2.5 billion) in developing transportation, drainage and sewage infrastructure; NIS 5.5 ($1.75 billion) in creating new kindergartens and schools; more than NIS 2 billion ($630 million) in developing, planning and removing hurdles for new homes in the Arab community; and NIS 640 million ($202.6 million) to encourage municipalities to approve construction permits.