for infrastructure development causing construction to stagnate and prices to rise. Again thecontractors gain and the public suffers.
nti-social housing policy.
A reservoir of affordable housing, fitting for youngsters, students, young families or lower incomeindividuals is an achievable goal through acting in various ways. For example, the ILAs planninginstitutions can order the building of smaller apartments that fit these populations needs. Anotherobligation can be the building of rental-only housing projects. Also a law on public housing hasexisted since 1998 that states all income from public housing is to be used in order to increase thenumber of public housing units.However the governments policy is the opposite: most of the apartments built in Israel in recentyears are large apartments, which generate more income for the contractor (as well as themunicipalities that can charge a higher tax). Rental-only housing is virtually non-existent. As forpublic housing, only the first part of the law has been enforced - public housing apartments weresold, however new projects financed by their sale are rare to be found.
he State of
Israel is heavily centered, financially and culturally, on the Dan area (Tel Aviv metropolitan). Thisphenomenon is known as the State of Tel Aviv. This fact has generated high demand in the centerof the country, where the centers of employment, culture and economy are situated, and as a resultneglected the diminishing periphery. A surplus of demand around Tel Aviv has also caused prices torise nationally.
Research done by the Bank of Israel shows that the main reason for the price raise in the last 2 yearsis a wide spread phenomenon of real-estate investment purchasing. The interest policy of the Bankof Israel, combined with regressive taxation regulations, has led to a rise in demand and in prices.
Is the National Housing Committees
Law a Supertanker?
Prime Minister Netanyahu relates to the National Housing Committees law as a supertanker - i.e. a lawthat has the ability to put out the fire that exists today on the real-estate market. However it seems like thissupertanker, brought before the Knesset for approval on July 25
, does not aim to deal with any part of theexisting crisis. It does not refer to land hoarding, mention affordable housing and there are no plans for theperiphery or public housing.What is it all about then? National Housing Committees are suggested to be established in order to approvebuilding projects quickly. However, as shown above, approval is not the root of the issue as 160,000 units areapproved, but are not being built. More so, the law allows a contractor to start building up to 3 years fromthe start of the lease on the land, which is a continuation of the existing problem.Hasty planning is a gateway for environmentally, socially and economically damaging projects. The existingprocedure, although demanding improvement, contains unavoidable elements. A hasty approval may end upin generations of regret.