Israel’s state comptroller Joseph Shapira released his report Wednesday on the nation’s housing crisis, detailing a 55 percent rise in the price of a home between 2008 and 2013.
According to the 294 page report, rent costs rose by 30 percent in the same period, and that “no solution was found” by the Netanyahu government. Wage raises did not match the skyrocketing prices, the report noted, and,”The various government departments responded with no strategic plan of action in the long term, and without having set any goals.”
What was once a given – the Israeli tradition of both sets of parents splitting the cost of buying an apartment for their children when the young couple marries – is today a given no longer. For many Israelis the high cost of living has put the tradition entirely out of reach. Rents are also significantly higher, even in communities located in the “periphery.”
Prime Minister Binyamin Netanyahu’s Likud party released a statement in response to the damning report, saying that only a strong government led by Netanyahu could resolve the crisis, “just as we did with many other reforms and deep institutional changes we implemented, which made the Israeli economy strong and competitive.”
Former Likud MK and current candidate Prof. Benny Begin told the Anglo Voters’ debate at Cinema City in Jerusalem on Wednesday evening, “In 2009, less than 20,000 apartments were being built annually. This year with Housing Minister Uri Ariel, 50,000 were built. But we need a stable government, a strong backbone and a strong Likud to keep one government in place in order to continue that trend,” he emphasized.
Yisrael Beytenu candidate Ashley Perry, also present at the debate, said his party would strengthen the economy and the housing market by helping families purchase new homes with a mortgage designed to avoid the difficult issue of the 33 percent out-of-reach down payment. For Israelis who have served their country via the military, Perry said, there should be a 90 percent mortgage incentive plan and after-school programs for working mothers to help them earn a living.
Yesh Atid MK Rabbi Dov Lipman, another candidate present at Wednesday evening’s Ango Vote debate, also underlined the fact that more than 50,000 housing units were built this past year but said his party chairman had been sabotaged. “The plan was to build thousands of rental units as well,” he said, “but there was not enough time for Yesh Atid to implement our entire housing improvement plan, which involved an increase of NIS 10 billion in the 2015 budget. It was on the table when elections were called. We wanted to pass the budget, and then call the elections – but the prime minister refused.”
Yachad candidate Hillik Bar also blamed the prime minister, noting that at least two million Israelis live in rented housing. “It’s a jungle,” he said. “This government has made no attempt to reduce the price of housing.”
Bayit Yehudi candidate Uri Banks slammed Yesh Atid party chairman and Finance Minister Yair Lapid altogether over the issue, saying he “came in with a foolish plan which increased demand without the supply to meet it. He committed suicide on that plan and brought us to these elections.”