Construction and Housing Minister Uri Ariel and Finance Minister Yair Lapid
agreed on Sunday to form a multi-billion-shekel fund to reduce barriers to
developing real estate.
Construction remains stalled on some planned
housing programs because the existing infrastructure – in areas such as urban
planning, road interchanges and water treatment facilities – is not up to snuff.
The fund will take aim at making progress on those fronts, in order to let
stalled construction proceed.
“The marketing must be effective, and
[must] enable contractors to build tens of thousands of additional housing units
throughout the land, and increase the supply of [housing] starts,” Ariel said.
“This is the most significant tool at the government’s disposal for reducing the
price of housing.”
In addition to agreement on the “barriers fund,” the
housing cabinet on Sunday approved the creation of a government agency to
advance rental housing.
In an interview with The Jerusalem Post to be
published during October’s Diplomatic Conference, Lapid said that his aim was to
“change the rules of the game” in housing, pushing more young couples toward
The company’s main objectives will be developing potential land
for development, implementing property agreements and land redemption, advancing
statutory planning and managing development and contracts. The company will have
an operating budget of NIS 8 million and an additional NIS 20m. for advancing
projects for each of the next two years.
“The government company that
will be established will advance projects in the area of rental housing, and
will centralize under it the handling of all stages of building, from locating
areas, to construction and oversight of contract winners,” Lapid said on
Due largely to a lack of new supply to keep up with spiking
demand, the average home price shot up 54 percent between 2008 and 2012, while
average household income in the country rose by only 20 percent.
set a goal of adding 150,000 units over the next decade to combat the housing