Reining in prices: Israel seeks to bring order to rental housing

Israel's Ministry of Construction has prepared a strategic plan to regulate the rental housing market. The document mandates reporting requirements for landlords, the establishment of a unified state rental authority, and a mechanism for pre-trial complaint resolution. The market is valued at 50 billion shekels, with rents rising 38% over 10 years.

Israel's Ministry of Construction has prepared a strategic plan to regulate the rental housing market, which was obtained by journalists from 'Mamon' and Ynet. About 2.5 million Israelis live in rental apartments, and the rental market is estimated at approximately 50 billion shekels per year. Over the past decade, rental prices have risen by about 38% in nominal terms. The plan mandates reporting requirements for landlords, the establishment of a unified state rental authority, and a mechanism for handling tenant complaints without court proceedings. The document was presented about a month and a half before the elections, and the decision on its implementation will be made by the next government. A similar project was blocked in 2024 due to objections from ministries. The plan also proposes developing institutional rental housing, which currently accounts for less than 1% of the market, and allocating land for construction exclusively for long-term rental. It is noted that building rental housing is often unprofitable for developers, as capital remains 'locked' in real estate for a long time.