Israel to offer 20,000 discounted homes to IDF reservists in coming years

Israel's government announced a program to offer approximately 20,000 discounted apartments or land plots to IDF reservists over the next two years. The 'From Reserve Duty to a Key' program, unveiled by Netanyahu, Katz, and Smotrich, includes 16,000 apartments via the Target Price program and 4,000 plots, with discounts exceeding NIS 500,000. Reservists get priority for 75% of apartments, up from 50%. The move follows strong demand in a recent lottery and comes ahead of October elections amid controversy over ultra-Orthodox draft exemptions.

Israel's government unveiled on Sunday a program to provide approximately 20,000 opportunities for IDF reserve soldiers to purchase discounted apartments or land over the next two years. Prime Minister Benjamin Netanyahu, Construction and Housing Minister Chaim Katz, and Finance Minister Bezalel Smotrich announced the 'From Reserve Duty to a Key' program, which will make about 16,000 apartments available through the government's Target Price program and roughly 4,000 plots for ground-level construction during 2026 and 2027. Successful applicants could receive discounts of more than NIS 500,000 ($167,000) on a new home. The announcement follows strong demand from reservists in the latest Discount Apartment lottery, in which 25,354 reservists registered and 4,734 won apartments. In the latest program, reservists will receive priority for 75 percent of apartments offered, compared to 50% in the most recent lottery. The program will also expand benefits for reservists seeking to purchase plots for ground-level homes in National Priority Area A, including parts of Israel targeted by Hamas and Hezbollah during recent wars. Reservists will receive a full exemption from payment for the value of the land in these areas, although they will still be responsible for development costs. Netanyahu said the measures were intended to recognize the sacrifices made by reservists and provide housing assistance to thousands who do not currently own a home. He noted the government had already provided NIS 25 billion in assistance to reservists and their families. The move comes ahead of elections scheduled for October 27, and amid mounting anger at the government over its efforts to enshrine sweeping draft exemptions for the ultra-Orthodox community. Criticism has been particularly loud in far-right Smotrich's Religious Zionism party. Some 72,000 ultra-Orthodox men aged 18 to 24 are currently believed to be eligible for military service, but have not enlisted. Israel's housing market has slowed over the past year, partly in reaction to the multifront war since Hamas invaded southern Israel on October 7, 2023.