In a Housing Cabinet meeting held on May 12, led by Construction and Housing Minister Yitzhak Goldknopf and attended by Prime Minister Benjamin Netanyahu, Finance Minister Bezalel Smotrich, other ministers, the Governor of the Bank of Israel, and the head of the National Economic Council, a comprehensive plan for the real estate market for the coming years was presented and approved. During the discussion, Minister Goldknopf presented the achievements of the Construction Ministry since 2023 and his vision for the future of the housing market, including the marketing of over 200,000 housing units with more than 125,000 actual transactions, six lotteries under the “Apartment at a Discount” program with about 33,000 housing units and nearly half a million registrants, as well as a clear preference for reserve soldiers, over 5,000 of whom have already received discounted apartments.
The presentation of the plan also included details on promoting umbrella agreements for projects across the country totaling over 60,000 housing units, an investment of NIS 6.2 billion in upgrading the public housing system and purchasing about 1,000 new apartments, framework agreements and urban renewal in seven cities, investments in shelters, assistance to evacuation-reconstruction complexes affected in the south and north, and extensive renovation of public housing apartments in Kiryat Shmona and Shlomi. In addition, assistance was allocated for temporary housing for residents of communities evacuated on October 7, including Kfar Aza, Nir Oz, Be’eri, and Re’im.
The Five-Year Plan: More Than Half a Million Housing Units
For the first time in Israel, official five-year targets were presented for marketing land for construction and for conducting transactions. In 2025, 80,000 land marketing actions and 65,000 actual transactions are planned, and in the years 2026 to 2030, the plan includes a dramatic acceleration to half a million land marketing actions and more than 325,000 transactions. However, these targets cannot be realized without several necessary conditions, foremost among them the allocation of a government budget of NIS 3 billion already for 2025, approval of a strategic plan for long-term rental, agreements between the Construction and Finance Ministries on the continuation of the “Apartment at a Discount” program, and the establishment of a regulated mechanism for removing infrastructure barriers in the areas of transportation, education, sewage, and urban infrastructure. If these conditions are not met, the Construction Minister will be forced to adjust the market targets in accordance with the emerging reality.
During the discussion, Director General of the Construction and Housing Ministry Yehuda Morgenstern presented a dramatic figure: currently, there are about 400,000 housing units in Israel that are approved in planning but cannot be marketed due to infrastructure barriers. To address this, it was agreed to establish an inter-ministerial team that will work in parallel with the Prime Minister’s Office to examine mechanisms for removing barriers and to evaluate the performance of authorities and banks in practices that lead to delays. The head of the National Economic Council also presented a decision proposal that was approved to establish a dedicated team to examine the impact of banks on housing prices.
Minister Goldknopf said during the discussion: “The mission is clear – to increase the supply of housing and achieve the goal of housing affordability for every citizen in Israel. The work is vast and the commitment is absolute. Two years of action prove that it is possible. The plan before you will enable continued care for housing solutions for all citizens of Israel, with an emphasis on reserve soldiers and young couples.” Director General Yehuda Morgenstern added: “Setting five-year targets for marketing and transaction execution is an important milestone on the way to stability in the housing market. Their success depends directly on the implementation of essential steps – primarily the allocation of a significant budget, the formulation of agreements on the ‘Apartment at a Discount’ program, government approval for long-term rental, and the advancement of mechanisms for removing barriers. This is not just a plan – it is a call to action for all relevant government ministries to ensure the future of housing in Israel.”
