Israeli government to offer subsidized housing across the country
In Israel, homes tend cost upwards of $9,780 per square meter, which accounts for more than a quarter of a household's disposable annual income.
By ZACHARY KEYSERTel Aviv skyline (photo credit: REUTERS)
Finance Minister Israel Katz and Construction and Housing Minister Ya'acov Litzman approved plans devised by the Israel Land Council to lower housing costs on units throughout the country.The new plan will allow housing units subsidized by the Israeli government to be listed alongside properties on the free market - inevitably lowering the cost of living and creating competition, as well as opportunities for Israelis to take advantage of low-income housing options.The decision should come as a relief to Israelis who have endured the burden of sky-high housing costs for years. Israel was listed as the second most expensive country in which to buy a home this year, according to research performed by Australia-based Compare The Market.Israel ranked second out of 39 countries listed, as homes tend cost upwards of $9,780 per square meter, which accounts for 26.6% of a household's disposable annual income.The move would provide "reasonable and proportionate" discounts to eligible buyers, which the committee hopes with in turn increase the economic viability of the real estate market and the Israel Land Authority - hopefully boosting economic growth amid the coronavirus pandemic.Israelis can obtain a certificate of eligibility to compete in lotteries which would earn them the opportunity to purchase a subsidized house, and can obtain them from the Construction and Housing Ministry."I welcome the outline that has been formulated in cooperation between our ministries. This is great news for the real estate market and the citizens of Israel at this time," Katz said. "The outline is balanced in terms of a reduced price mix and a free market in a way that will encourage development and construction and increase the economic viability of construction projects," he added. "I will continue to work towards lower the cost of living and strengthening the Israeli economy."
