Housing Market

This paper predicts a continuing increase in housing prices, due to the decrease in the number of housing units per household, and proposes six short- and long-term reforms to address housing issues.

This policy paper reviews the difficulties and barriers facing the urban renewal process in Israel, examines existing solutions and their limitations, and proposes improvement suggestions meant to facilitate easier execution of the process and to increase construction outputs produced by urban renewal.

This paper shows that there was no bubble in housing prices between 2007 and 2017; rather, the erosion of housing supply for households and the decrease in mortgage interest rates caused the sharp increase in housing prices. To alleviate the increase in housing prices over the next three years, around 80,000 units should be built each year.

This policy paper recommends a strategic shift in the housing policy which includes several reforms, in order to provide a comprehensive response to supply-side failures in the housing market, and to ensure long-term, real decrease in housing prices.

The aim of this policy paper is to provide policymakers and the Israeli public with current, research-based information relevant to the discussion on the question of regulating the property rental market in Israel.

This policy paper discusses the dominant trends in the housing market, points to structural market failures which have contributed to the rise in housing prices in recent years, and proposes a reform plan in order to curb it.