Israel is a country of top scientists, but no one can fix its housing problem
Israelis invented advanced missile interceptors and some of the world’s top treatments for cancer. Yet when it comes to the mundane task of building affordable housing, this nation of scientists and software engineers hasn’t quite cracked the code.
Finance Minister Moshe Kahlon’s political future may rest on whether he can do just that.
As he approaches a year in office, Kahlon’s moves to streamline the construction process and increase supply have bumped against the hard data of prices that have more than doubled in less than a decade, including a 7.8 per cent increase in 2015. Economists say his proposed deep-tissue changes won’t show results for years, and critics say some of his short-term measures are counter-productive.
The tendency for Israeli governments to collapse mid-term may rob him of the time he’ll need to see his signature issue through.
“We call ourselves Startup Nation but we are stuck with a shortage of 100,000 apartments,” said Housing Minister Yoav Gallant, a member of Kahlon’s Kulanu party who ceded some of his ministry’s powers to the finance ministry in a bid to get things moving. “We should be capable of solving this issue.”
