From the UN report: 13% of East Jerusalem is zoned for Palestinian expansion; 35% for Jewish settlements (Jerusalem is one-third Palestinian; East Jerusalem is 90% Palestinian.) “The gap between housing needs based on population growth and the legally permitted construction is estimated to be at least 1,100 housing units per year.” (p.2) “According to official statistics, between 2000 and 2008 alone, the Israeli authorities demolished more than 670 Palestinian-owned structures in East Jerusalem due to lack of permit.” (p.2). “In 2008, 125 building permits [in East Jerusalem] were issued [to Palestinians], allowing for the construction of approximately 400 housing units.” http://www.reliefweb.int/rw/RWFiles2009.nsf/FilesByRWDocUnidFilename/PSLG-7RMB33-full_report.pdf/$File/full_report.pdf. A total of 2351 permits were issued in all of Jerusalem in 2008, that is, Palestinian Arabs received 5.3% of the permits, even though they are 33% of the population. Ir Amim, “A Layman’s Guide to Home Demolitions in East Jerusalem,” March 2009, p. 4. URL: http://www.ir-amim.org.il/Eng/_Uploads/dbsAttachedFiles/HomeDemolitionGuideEng(1).doc. These findings are corroborated in a World Bank report “MOVEMENT AND ACCESS RESTRICTIONS IN THE WEST BANK: UNCERTAINTY AND INEFFICIENCY IN THE PALESTINIAN ECONOMY” May 9, 2007. http://siteresources.worldbank.org/INTWESTBANKGAZA/Resources/WestBankrestrictions9Mayfinal.pdf According to the World Bank report, the number of recorded building violations between 1996 and 2000 was four and half times higher in Jewish neighborhoods but four times fewer demolition orders were issued in West Jerusalem than in East Jerusalem; Palestinians in Jerusalem were less likely to receive construction permits than Jews, and "the authorities are much more likely to take action against Palestinian violators" than Jewish violators of the permit process.
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from the article: Netanyahu: We will never divide Jerusalem