The Cabinet approved a proposal by the Minister of Housing to prepare a comprehensive strategic plan for the rental market in Israel. This plan includes providing tools for producing information about the rental market, making it accessible to the public, and setting targets for marketing plots designated for rental projects. According to the Treasury, in 2023, 29% of all households in the country lived in rent.
The Cabinet approved today (Sunday) Minister of Construction and Housing Yitzhak Goldknopf’s proposal to prepare a comprehensive strategic plan for the rental market. Following the proposed resolution approved today, professionals in the Ministry of Construction and Housing will hold regular discussions to formulate a strategic plan that will be presented within 120 days. This is against the background of the crisis in the construction industry, the rise in housing prices, and the lag of the long-term rental market in Israel compared to other Western countries.
The proposal states that in 2023, 29% of all households in the country lived in rented accommodation and that the rental market for that year is estimated at NIS 42 billion. “Although the rental market is a substantial alternative to home ownership, as of today, this market is not sufficiently developed compared to other developed countries. The demand for housing in general, and rental housing in particular, exceeds the existing supply, and the average rent continues to rise, imposing high costs on the average citizen,” the draft resolution states.
Despite this, it is noted that Israel’s rental market is not developed compared to other Western countries, and demand exceeds supply. Israel ranks lowest among OECD countries in terms of rental regulation. This means that rents are also rising steadily, while households living in rental housing have no certainty or stability regarding their living price over time.
The approved proposal includes the plan’s main points, including tools for producing information about the rental market and making it accessible to the public, tools for encouraging long-term apartment rental, and targets for marketing lots intended for building rental projects.
In addition, the minister instructed the professional teams to promote complementary measures in the housing market vis-à-vis government ministries and professional bodies to meet the plan’s goals and the proposed timeframe.
Minister of Construction and Housing Yitzhak Goldknopf: “One of the overarching goals of the Ministry of Construction and Housing is to increase supply in the rental market. I instructed the professionals to create a creative and meaningful strategic plan to fulfill our obligation to help tens of thousands of Israel’s families living in rented accommodation.”
Director General of the Ministry of Construction and Housing, Yehuda Morgenstern: “The rental market is a central goal in the Ministry’s plans. The plan to be formulated in the coming months will include significant steps to regulate the rental market in Israel, including proposals to increase the supply of apartments intended for rent, making information accessible to the public, and setting targets for developing this market. The ministry will continue to work more vigorously to provide housing solutions suitable for all citizens of Israel.”
