Thousands of Satmar Chassidim gathered last Friday to mark the 45th Yahrtzeit of Rav Yoel Teitelbaum zt”l, during which the Satmar Rebbe of Kiryas Yoel, HaRav Aharon Teitelbaum, used the occasion to address a pressing issue facing the kehilla: the skyrocketing housing prices in Kiryas Yoel.
In his address, the Rebbe highlighted the severe housing crisis, noting that over the past five years, the cost of housing in Kiryas Yoel has surged dramatically, with the price per square foot shooting up by a staggering increase of 400%. This surge has placed a heavy burden on the kehilla, where large families are struggling to find affordable housing.
To combat this crisis, the Rebbe took decisive action by forming a special committee in collaboration with local askanim. Their efforts bore fruit two months ago when a new municipal law was passed, capping the price of apartments in new projects. However, recognizing that the law’s benefits would not be immediate, the Rebbe reached out to Chasidic businessman and Satmar Philanthropist Akiva Hersh Klein, who is currently developing a new neighborhood with 2,000 apartments in Kiryas Yoel.
The Rebbe announced that Klein had agreed to his request to substantially lower prices. Klein committed to selling 1,000 apartments at half the prevailing market price ($300 per square foot), a gesture estimated to potentially cost him around $250 million.
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8 Responses
I don’t know the costs of construction in KJ, but in lakewood that is the actual cost of construction.
Assuming the numbers are similar, he is essentially giving you the land for free, building you an apartment, and covering the carrying costs/interest in the interim. Not only that, but no lender in their right mind is going to lend him close to the construction costs given these price caps, so he will almost certainly need to overextend his capital deployment which will hamstring him in other business ventures.
If you are the recipient of one of discounted apartments, you had better not just mumble a thank you. It’s going to have be a serious thank you with a nice gift as well.
Wow! If only this could be replicated in the Litvishe community! Not happening anytime soon unfortunately.
Doesn’t make sense ask some goyim to invest there everybody knows that if you have the customers already then the building cost nothing once you have the buyers that say they are going to do it and sometimes you can get twice the people the actual price is the land the building material and the workers ridicules ask goyim to invest in the retard place
This is Gemilas Chasadim on an awesome level. No fanfare, no hoopla, just saving massive amount of cash for 1000 frum families. Wow!!!
Try lowering interest rate has same effect.
מי כעמך ישראל such selfless people may he have lots of brocha and Hatzlocha and hopefully inspire others.
*note
The cheap price is for existing KJ residents, and those who intend to use it as primary residence.
Satmar tops the list with chesed!