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Government sets 24-year housing target

The housing cabinet has approved a construction target of 1.5 million new housing units by 2040.

The housing cabinet, led by Minister of Finance Moshe Kahlon, today approved a strategic housing plan designed to provide a solution for Israel's housing needs until 2040. The plan sets a target of 1.5 million housing units for construction within 24 years.

The decision follows a June 2015 cabinet resolution stating the need for a strategic housing plan addressing future demand, geographic dispersal, urban renewal, a strategic stock of housing, price targets, and streamlining of the production chain.

The plan is based on a forecast by the National Economic Council for 2017-2040, which stated that a planning stock of 2.7 billion housing units should be prepared for this period. Over the next four years, the planning system will have to approve 108,000 housing units a year, rising to 123,000 housing units a year in 2036-2040.

Kahlon said, "For the first time in years, there is a strategic plan for both the short and long term. In the short term, the government is giving young couples and people without housing top priority, and is getting to the root of the housing problem. In the long term, our responsibility is to make sure that a new crisis does not emerge in the future."

Minister of Construction and Housing Yoav Galant added, "The strategic plan emphasizes solutions for all the people expected to enter the demand cycle in the coming years. The plan is designed above all for those without housing: young couples and demobilized soldiers."

The housing unit targets for 2017-2040 are 441,000 for the northern district, 315,000 for the Haifa district, 657,000 for the central district, 436,000 for the Tel Aviv district, 369,000 for the Jerusalem district, and 490,000 for the southern district.