Since the 2008 global financial crisis, housing prices in Israel have soared by 214%, more than tripling themselves. This figure means a middle class Israeli will need 150 monthly pay checks in order to buy a house, double the average of countries in the Organization for Economic Cooperation and Development (OECD).
"The housing crisis is a national mission of the utmost importance," said Construction and Housing Minister Ze’ev Elkin in his first speech as minister.
In a contractors conference held in Eilat last month, Elkin was presented with data showing a rise of 5% in housing prices in the city. He blamed the COVID-19 pandemic and the former government for mishandling the Housing Ministry.
While these statements might be correct, they affect Israel's housing market and raise already sky-rocketing demand, especially coming from the ministers in charge of this issue.
Due to the lack of a sufficiently functioning government in Israel over the last two years, the expectation is that housing prices will continue to grow. Prime Minister Naftali Bennett's new government is yet to present a plan to mitigate the crisis.