The Israeli Government today agreed to implement the central recommendations of the Trajtenberg committee with respect to housing.
As part of those recommendations, the Government will plan to build 187,000 housing units across the country in the next five years.
The aim is to increase the housing supply, which will then allow housing prices to fall and make buying their own home a more realistic option for young couples and others who are at the bottom of the housing ladder.
Today, the Cabinet will approve
the main points of the housing sections
of the Trajtenberg Committee report
This is an additional part of the Government’s effort
to reduce the cost of living
The focus here is the attempt, which is gaining momentum
to increase the supply of apartments in order to deal with the price of apartments.
This is also showing positive signs,
but this struggle, this effort
will be backed today by a series of steps
some of them far-reaching, to increase the supply of apartments.
The more apartments there are, the greater will be the pressure to lower apartment prices.
This is what the Cabinet has been dealing with even before this report was presented and adopted
how much more so afterwards.
I remind you that this is the fourth section of the report
by Prof. Trajtenberg’s commission that we are approving.
We approved the section on taxation.
Today, hundreds of thousands of families in Israel
are enjoying supplements of hundreds of shekels a month
thanks to the income tax credit points
for working parents with small children
We approved the section on the cost of living.
In addition to building more housing units, the Trajtenberg committee recommendations also include fines for developers who delay construction on land to which they have building rights, and higher taxes on homes which are empty for most of the year. The idea is to encourage absentee owners to rent out their apartments rather than pay higher municipal taxes. This could cause an influx into the market of thousands of new rental properties and ease the rental housing shortage.
Other housing recommendations include help for the disabled and new immigrants, extra money for rental assistance for those in need, and the building of more purpose-built homes for the elderly.