The economic gaps between the Jewish and Arab populations in Israel are increasing, but they actually are shrinking in the realm of housing. According to a report from the the Association for the Advancement of Civic Equality in Israel (Sikkuy), the overall gap between the two sectors grew by more than 20% in 2007, based on five fields: health, housing, education, employment and welfare.

The Equality Index goes from 0 to 1, and rose from 0.28 in 2006 to 0.35 in 2007.

However, the silver lining is that the housing inequality index was only 0.27, less than the overall index. The average price of housing in the Jewish sector was NIS 770,000, while in the Arab sector it was NIS 618,000: The lack of available land and the 3% natural population growth in the Arab sector have led to higher housing prices.

In addition, the association admits much of the change comes from better measurement, not a change in state policy. The Jewish population has larger residences, and 0.85 persons per room, while Arabs have 1.42. Only 3% of building starts in the Arab sector were public housing, compared to 25% in the Jewish sector.