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Is Israel Moving to Rent Controlled Housing?


MK (Yahadut HaTorah) Uri Maklev has submitted a recommendation to offer housing rentals in Israel due to the realization there is a growing number of couples that simply cannot afford to undertake the expense of buying a home. Maklev states that such programs exist in the United States and Europe, where they are successful, and Israel should model our program on their success.

Maklev’s proposal was forwarded to the Trachtenberg Committee, which is formulating a plan for social-economic reform in Israel, concerns that have earned a prominent place on the national agenda following a summer of protest tents nationwide. The committee is chaired by Professor Manuel Trachtenberg.

Rav Maklev explains that there are three primary costs that make up the price of housing, (1) the land; (2) the infrastructure development and (3) the cost of the actual building. The first two components he explains comprise one-third of the cost of a home. He feels that if the state pays for the first two immediately, and recoups these funds over a period of time, it would result in affordable renting, or more accurately, leasing. He wishes to create a system that mimics car leasing, that at the end of making payments, a person would own the apartment.

Maklev explains that the state would have to set criteria defining who would be eligible for such apartments and the state may offer a number of payment tracts; 20, 25, or 30 years, accommodating different levels of ability to make monthly payments. The plan also calls for establishing a government entity to become the landlord during the payment period, perhaps even permitting the government selecting a private agency.

According to a HaMevaser report, government participation in funding would increase in development areas, areas that the government sees as a priority, seeking to settle Jews to address alarming demographic realities, such as in the Galil.

Maklev feels his plan would permit couples to live with an affordable rent but at the end, they will own something as opposed to renting forever. Today’s housing system is simply out of reach of too many couples who are unable to muster down payment capital, not to mention the monthly mortgage payments.

(YWN – Israel Desk, Jerusalem)



3 Responses

  1. It works great in New York. That’s why New Yorks enjoy the best and cheapest rental housing in the country.

    Perhaps they should try a free market solution. Eliminate all the zoning and red tape the restrict building apartments. Instead, building housing should be based on capital and demand, not protecktsia.

  2. The problem right now is too much government involvement and the central planning that goes with it. The solution is not for more govenment but for government to get out of the way.

  3. It will only work IF they do not allow investors to buy up or rent the properties and then sublet them. That would defeat the entire purpose of affordable housing. Basically if they do this lease program, it is a government mortgage plan, where the government is holding the mortgage on the property for the 20-30 years and the couple will own the property after paying it out in that time frame. So here is the problem. A young couple would probably start off with a small apartment and then look for a larger apartment when the family grows. What will they work out with the exchange, buy back, upgrade situation?

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