Amid soaring housing prices and a high cost of living, Israel's locals and visitors alike are asking - why is Israel so expensive?
The economic situation in Israel developed because “supply is not competitive, and demand is complacent,” Dr. Alex Coman, an expert in economics from Israel’s Tel Aviv University explained.
According to the economist, these prices are not set in stone, and can change with initiative from locals.
The expert said that costs “changed once in the past, when Israelis discovered that Israeli products are cheaper abroad.”
He described how Israelis found yogurt produced in the country was cheaper to buy in Germany and France than it was to purchase at sky-high domestic prices.
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A woman searches the garbage for food at Tel Aviv's Carmel Market
(Photo: Nadav Abas)
“This really blew people’s minds, and then there was a big protest, and as a result prices really declined,” Dr. Coman detailed.
“But as time passed, people forgot, people became complacent, and prices began rising again.”
To cut costs, the expert encouraged locals to search for parallel import companies in Israel, firms which source their products from cheaper countries like those in eastern Europe.
He also called on Israelis to “be mad and make the effort” to fight rising prices.
The expert also predicted the new housing reforms from Israel’s government are unlikely to change rocketing home prices.
“The problem is that most of the land belongs to the Israeli government… and this office, being bureaucratic, is not anxious to sell the land,” Dr. Coman explained.
Article republished with permission from i24NEWS