When it comes to home building its done by private developers who don't give a damn about settlements or the peace process either way only making money. Sorry to spring it on you but the days of socialism when governemts only spent money if it was for the collective good are over. For the developers the current market is for luxury buildings beyond the price range of the average Israeli. They are making plenty of profit from the rich people who can afford these apartments so they build them. If government was responsible for building homes then they would be building small no frills buildings which ordinary people can afford but the fact is government is not responsible for building houses. If we want to change the housing problem long term ( not just make the politicians jump ) then the solution must be Israeli cultural changes and if luxury makes money luxury it will be... thats the free market for you. If you do want to say that the peace process has had a role to play in this then we should be asking ourselves why is it for the past 20 years we have been expecting governments to dedicate the buik of their time to the peace process and so not leaving enough Knesset time for dometic agenda like housing problems. Sorry but this is one problem you can't blame on the settlers.
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from the article: Blame politics for the Israeli housing crisis