Housing Ministry Unveils New Plan for Cheaper Housing

December 31, 2014  

Too little, too late? The Housing Ministry on Wednesday announced a new plan in which the state would be the guarantor for construction of apartments for young couples and middle class families in peripheral areas that would be sold for the cost of construction.

Under the plan, announced Wednesday by Housing Ministry Director-General Shlomo ben-Eliyahu, the average price of the homes will be NIS 650,000 – NIS 700,000 ($160,000 – $190,000), significantly less than the cost of new homes. The average home will be about 90 meters, and include a storage room, but without underground parking.

Ben-Eliyahu said that there would be a need for a plan this if the next government did not adopt and expand the “target price” plan, which will limit the costs of construction of new homes as well.

Sources in the Ministry said that the plan had been developed in recent weeks – after a decision had been made to hold new elections. As such, the officials said that the plan was unlikely to be enacted before the elections, and they were hopeful that the new government would choose to adopt it.

The sources also expressed concern that the plan might not be as effective as Ben-Eliyahu thought, because the homes were set to be built in towns where the cost of new housing was about NIS 800-850,000 in any event.

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