Hidden Crisis: Why Housing in Israel Is Becoming Less Affordable

The Israel Housing Planning Authority has reduced the number of tenders for mass market construction to a minimum since early 2024, prioritizing subsidized programs. This threatens new price increases and reduced supply.

The Israel Housing Planning Authority has sharply reduced the number of tenders for mass market construction. In the first half of 2026 (January 1 to end of June), the tender committee approved only 15 tenders—the lowest among comparable periods since early 2024. For comparison: in the first half of 2025 there were 20 tenders, in the second half 29; in 2024, the first half had 20, the second half 40. The decline from the previous half-year is nearly 50%. Meanwhile, over the same six months, 16 tenders were held for subsidized housing—the state is promoting more affordable housing projects than free-market offerings. Subsidized programs target reservists, local residents, and people with disabilities, while the general public has virtually no access to them. The reduction in tenders carries risks: it affects construction volumes in the coming years and could lead to new price increases. Completed construction statistics distort the picture by including apartments for a narrow group of recipients. Against this backdrop, the struggle for the position of Director of the Ministry of Finance continues: Minister Bezalel Smotrich is promoting the candidacy of Yehuda Eliyahu.