Why is anyone surprised that Housing prices are high and availability of land to build is low? Only 7% of the land in Israel is private! Compare that to the US where the figure is about 60%, and most of the public land in the US is in Alaska (which is mainly uninhabitable) and Western States like Arizona. 7% of an already tiny nation is not much to work with. Even just doubling that number to 14% private would alleviate much of these pricing problems but people are so concerned that Arabs [gasp] might snatch up all the land that they prefer it in government hands. Hopefully, big changes are coming with Uri Ariel at the Housing Ministry. Given the fact that he now controls the Israeli Land Administration as well, don't be surprised.