Solving housing crisis: Strongly, swiftly and not so elegantly
Op-ed: Times call for taking urgent measures to double Israel's housing supply, Calcalist publisher tells business daily's Annual Real Estate Conference.
Is it not appropriate to declare Israel's housing crunch a national disaster calling for urgent measures, similarly to a disaster proclamation by FEMA in times of emergency?
Whoever deems such a "national disaster" proclamation overblown is obviously out of touch with the young generation of Israelis who have long forgone any chance of buying a house at a reasonable price.
They don't covet luxury penthouses such as those flaunted by the likes of Ehud Barak or Ilan Ben-Dov. They wish to live here but the housing crunch is killing them. We, their parents, bear this brunt as well.
Some disasters strike from the heavens – a hurricane or a deadly Tsunami can leave thousands homeless in a flash. But Israel's housing debacle is manmade. It even comes with a serial number: 3973.
Government decision 3973 from August 2008 regarding "the implementation of steps to achieve population goals" declares that government offices shall not initiate planes for the re-purposing of land in the central region of the country in during 2009-2012.
Intentions were good. The idea was to shift the population to the peripheries. We've heard the same trite slogans over and over again. But Israel voted with its feet and preferred to flock to the center of the country, where jobs are more available. Consequently demand for apartments soared but supply was curbed by that unfortunate "decision 3973". It doesn't take a degree in economy to understand what happens when rising demand is met by short supply.
'Homeless' children
When former Bank of Israel Governor Stanley Fischer, the man and the legend, suppressed interest rates and poured cheap shekels into the fire, we got a hurricane of housing prices which is raging still, and more and more Israelis found they could no longer so much as dream of owning their own home.So why do I keep mentioning 3973? Because I want to impart our disgust with this lame excuse – this imbecilic decision was reversed in 2010. The Treasury boys at the time have long gone home. Former Housing Minister, Ariel Atias has crossed the floor last year and former Finance Minister is now minister of whatever-the-name of-his-redundant-office-is. A decision nullified in 2010 is no longer a valid excuse for shortcomings of 2014.
The 2014 ministers of finance, housing and internal affairs are our esteemed guests today so we'll mind our manners. So I'll say this quietly: Gentlemen, how much longer are you going to blame Steinitz, Atias and Eli Yishai? Until when will you point to the frustrating constrains of the red tape and carp about uncooperative municipal administrations?
It is true that each of you have a different political affiliation with your own agenda. But the years go by and our "homeless" children still pay exorbitant rents. We, the parents, aren’t getting any younger, so call me naïve or a dreamer, but I expect you to join forces and without delay double the supply of houses, especially in high-demand areas. It's about time to demonstrate that "governance" you so like to talk about, especially if its agreed that we are facing a national disaster that calls for urgent means.
Thus, if a stubborn clerk deludes himself that he's running the country – show him the door; if a local committee prefers setting in its hands rather than repurposing land for housing development – dissolve or circumvent it; if a head of a local municipality prefers gentrification projects for his 15 minutes of UNESCO fame over providing for his own residents – you have the power to give him hell.
You're in charge and if you fail to respond strongly, swiftly and not elegantly – we will do our utmost to replace you.
