Business  Real Estate
Israel's housing crisis: Massive price increases across the country
Yaron Druckman
Published: 24.02.15, 11:24
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22 Talkbacks for this article
1. Like to Know Reasons for the Phenomena
Zechariah   (02.24.15)
The Reasons were not contemplated in the article .Certainly if it was excess gain( profit) you would demand supertax .Galut Investment is said to be another reason and the Employment benefits in the construction industry ought be calculated for a interesting article .Release of Land for Public housing in a large way some say will help .But building infrastructure in Perpheral regions and getting the critical mass of population like to know that .What of apartments in Arad and other Negev cities in the Centrabl negev and The Galil.
2. Let's be fair
The comparison between a tiny crowded urban Israel with a rapidly growing population to countries with massive land reserves (Canada), decreasing population (Japan) or deep economic crises (Spain) is silly. Even then, how many average monthly salaries are required to buy a home in Paris, New York, London or Amsterdam? A real comparison would show Israel is no worse than most. Second, as soon as US Federal Reserve and Europe Central bank decided on extremely low interest rates, Israel had no choice but to follow. This meant the only investment left is real estate, meaning that prices will rise. There is nothing anyone (except Obama) can do. Lastly, there is the issue of supply and demand. To their credit, Likud increased supply by massive building in the Sharon, expressways / trains to the North and South, and moving the IDF from the center to the south. The only real criticism was not made: the decision to prevent Jewish building in Judea and Samaria is the single greatest factor in the increased housing prices.
3. This is Lapid's fault
Scott ,   Ramat Gan   (02.24.15)
4. and anyone buying from abroad
danny   (02.24.15)
Lost some 25% in last 6 months in fx moves
5. Allow More Jewish Building In Judea And Samaria NOW
Yishai Kohen ,   YeShA, Israel   (02.24.15)
This is the natural way to help solve the issue. Our population is growing much faster than any other in Israel anyway, we are close to the population centers, and there is plenty of room for more of our brothers and sisters here.
6. Home Prices
Ida ,   Rehovot   (02.24.15)
If people would not buy the homes for the outrages prices, the prices would not continue to go up. The fact that new homes sell out before construction is completed shows that people will pay any price to own a home. Not all of us can do that. Of course, investors also contribute a lot to the purchases.
7. There's not really a problem
Trevor Trillionaire ,   Caesarea   (02.25.15)
If people cannot afford a flat, why don't they just buy a bungalow or a villa? I know I did. Seems people are getting too lazy and just whinging and whining instead of working hard and saving up. Stop eating so much cottage cheese and save up your money!
8. consider property taxes for investors or second home owners
dan ,   DC, USA   (02.25.15)
anybody buying a second home or buying a home from abroad should have extra property tax. this will place a cap on how expensive homes can be because nobody who really wants a second home or from abroad will want to buy a home with a massive property tax attached to it. further, you can say also make a law that any first time home buyer in israel gets to deduct mortgage and interest from taxes. finally, strip the red tape from new home construction and open vast new areas for construction. why should houses in beersheva be expensive? there is huge amount of empty land around beersheva. its not just the land shortage -- its the bureaucracy that is doing this. ultimately this is about inadequate supply.
9. housing prices
Ecr ,   jeruslem   (02.25.15)
its a simple matter of supply and demand. In Jerusalem only expensive apartments are built. If people will be coming on Aliyah we need to get our land authority in line and operating at a high level of operation. Why should it take 5 years to build an apartment building. Get vocational schools going to teach the building trade with motivations for advancement, etc. Affordable housing should be a trademark for any political party in Israel!
10. Massive Judea/Samaria building to reduce prices in Israel!
Chaim ,   Israel   (02.24.15)
The answer to Israel's housing problem is massive building in Judea and Samaria. Competitive market pressures exerted by such building would help bring down housing prices across Israel.
11. Reaping the results of a right-wing goverment
Miriam   (02.24.15)
Thats what you get when you vote for the Likud and the right wing religious block. They forgot about the hard working decent folk in the center, who work, pay taxes and serve in the IDF and instead plough all the money in to the settlements. No wonder young people who want to start a family are leaving the country
12. Buying property in Israel is not worth it
Rich ,   Toronto, Canada   (02.24.15)
The quality of life is low and the cost of living is high. Homes are way overpriced but the fools keep buying.
13. Circle of greed
Adam ,   Israel   (02.24.15)
I think the real issue is with greed and supply and demand. There are not enough new houses on the market every year and people ALWAYS feel that they have to buy and it raises the price. The kablanim see the prices on the market and then charge a premium to their new houses that take 3+ years to build.
14. Economics 101A.Small country growing population=high prices.
Al   (02.25.15)
It takes an Einstein to figure it out.
15. Anyone read the article?
Daniel   (02.24.15)
Facebook David Feldman blames Obama. Small surprise, some people blame Obama for exactly everything, sometimes they are even right. In this case, ridiculously wrong. If Feldman had taken the time to read the article, he would have seen that housing costs in Israel are disproportionate to the whole Western world, very much undermining the silly claim that Obama somehow made housing expensive everywhere. If an American, a Brit, or a Frenchman manage to buy TWO homes for their salaries by the time an Israeli buys ONE home, then the problem is in Israel.
16. Let's all move to Jerusalem and solve the political status t
Now what was that Zionist ideal.? "Welcome to Israel - you have a home here", I heard someone recently say. Really!
17. Once we retake ownership of our Land everything will be fine
18. Build every where in the Land of Israel
Brod ,   USA   (02.24.15)
Israel should build every where in the Land of Israel-Judea and Samaria-Israel's Liberated Historic and Biblical Homeland. It does not matter if the Anti-Semites and Islamist-Jihadists cry, bark, wet their pants or become hysterical. Israel can tell the dark forces to go to Hell where they belong. The Land of Israel is GOD-Given and GOD-Restored to the Children of Israel. Period.
19. Guess Yaron Druckman has never heard of "Hotel Mama",
A ,   Belgium   (02.24.15)
which is where many young couples in W.Europe and the U.S., even with 2 incomes and kids, end up living as they are unable to afford to buy a home and prefer to save by living with the P's, as uncomfortable as that sometimes is (I speak from experience) instead of throwing money away on rent. And what, for example, does 93 months of work buy in Japan, a tiny 2 room box?
20. The government has control, if they chose.
Jerusalem   (02.24.15)
Taxes can be raised in different areas including leased and rental properties and the government can make more government housing. Or, you can have crime that will eventually lead to war. Zionism includes people being able to live by the standards in the Jewish Scriptures that all the other faiths have in common. The Finance Minister would have to make the call on where and how taxes would be raised. What needs to be done needs to be done. Anything else is secondary including scare tactics. Somebody can come in and fill the gaps.
21. #10
Adler J   (03.01.15)
You are completely wrong, thats not the answer to Israel's housing problem. The government need to build at low prices in places where are more jobs opportunities, maybe just the riches from france, brussels or denmark will settle in Judea and Samaria? Im skeptic
22. Housing
Geoff Rubin ,   Kfar Yona   (04.11.15)
The dollar has appreciated 16% in 4 years and whether we like it or not housing is based on dollar calculations. Secondly tell 90% of the British population that 5 years salary will buy a home and they will laugh all the way to the mortgage bank.
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