State Comptroller: A Deficit of 190,000 Apartments Drove Prices Up 208%

The state marketed too little land in the center and too much in the periphery. Tel Aviv, the central district and Jerusalem lack 126 thousand apartments, while the periphery has a surplus. 26% of tenders failed, 28% of plans are not approved on time, and those that are approved cannot be carried out. There is no organized action plan, and there is no enforcement.

From 2007 to January 2019, the apartment price index rose by about 130%. From January 2019 to July 2022, prices rose another 37%, according to data from the Central Bureau of Statistics (CBS). Needless to say, the rises in housing prices have considerably increased the burden of housing expenses on households, especially among lower socioeconomic groups and the middle class.

The Comptroller points out that in the years 2006 to 2022 there was a cumulative deficit of about 189,000 apartments compared with housing needs, according to the National Economic Council. The most significant shortage is in the Central and Jerusalem districts: 55,000 units and 46,000 units, respectively. In the South and Tel Aviv districts the shortage is 34,000 units and 25,000 units, respectively.