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Housing policy out of sync with shifting demand, especially for smaller homes, study finds

www.timesofisrael.com·Michael Bachner and ToI Staff·about 1 month ago
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Israel’s housing crisis is being driven by a massive gap between skyrocketing apartment prices and lagging household incomes, according to a study released Wednesday by the Shoresh Institution for Socioeconomic Research . While apartment prices in Israel surged by approximately 130 percent between 2000 and 2022, net household income rose by only 45% during the period, the report found. The rise in average rental prices was more in line with wage increases, rising by 40% during this time. The study, authored by researcher Yael Mishli, found that home prices are being driven upward by a persisting shortfall in the supply of homes, with the crisis aggravated by construction failing to match a demographic shift in which household numbers have outstripped population growth, pointing to unmet demand for smaller units.…

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