There do seem to be plans for additional housing solutions - "The new plan for Silwan allows for the addition of thousands of housing units for the Arab sector. The new park and tourism center will also provide employment for dozens of Silwan residents. It's not the municipal workers who are tone deaf - but the media and all other Israel bashers who only hear oneside of the story - razing Palestinian homes.
Jerusalem suburb of Even Sapir evacuated as wildfire spreads (Haaretz)
from the article: Mayor defends plan to raze Palestinian homes in East Jerusalem