Its a problem that cannot be solved - Comment - Israel News | Haaretz Daily Newspaper
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    • zionist forever
    • 04.06.13 | 07:11 (IDT)

    The government can build some public housing sure but it will only be window dressing because property prices in Israel are very high and the government cannot stop that because the free market sets the price. If somebody is willing to pay 2 million shekels for an apartment thats worth 1 million shekels then people will pay 2 million and if they are buying it to rent then they will obviously charge much higher rents than they would if the property had been bought for 1 million because they want to make a profit not provide a public service. Tel Aviv can never be an affordable place for the average middle class Israeli because Tel Aviv is the 17th most expensive city in the world and most expensive in the Middle East, its Israel's version of New York or London and those kind of cities are never affordable. The only long term solution to the housing problems is not the government building public housing in Tel Aviv it is getting out of Tel Aviv and building out rather than up. Develop the rest of the country instead of concentrating the bulk of the population in the centre and on the coast then property prices nationwide will come down and it will create jobs but as long as the public want to live in the centre and on the coast very little will change and the problem will get worse not better. With more development more of the limited space is going to be taken up by business and luxury properties squeezing the average Israeli out even further. Government can build public housing today but give it another 20 years the problem will be even bigger than it is now because all governments can do is make gestures when they build some cheap properties but unless government will be responsible for all property sales and dictate rents they cant stop it. Doesn't matter if its Likud or Meretz its a problem with no solution long term unless we totally change our entire culture on where we choose to live.

    from the article: The riddle no Israeli government could solve: How to handle the housing crisis?
    First published 02:20 04.06.13 | Last updated 02:20 04.06.13
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