Israel's housing crisis: 204,000 families struggle to afford rent

Data provided on February 20 by the Public Housing Forum, in collaboration with Knesset Member Yasmin Sacks Friedman (Yesh Atid), exposes a perilous reality in Israel's housing crisis: approximately 204,000 families are unable to purchase a home and are struggling to meet monthly rent payments. 

The most severe cases are observed in Jerusalem, followed by Haifa, Netanya, Ashdod, Beersheba, Bat Yam, and Tel Aviv. In these cities, thousands of families are forced to move from one rental property to another within the competitive rental market, receiving minimal state assistance ranging from NIS 700 to 1,200 ($190-$330). This aid, however, fails to align with market rental rates and offers little respite to these financially distressed families.

The exponential rise in rental prices nationwide, particularly in major urban centers, compounded by past conflicts and the ongoing repercussions of the coronavirus pandemic, has exacerbated the situation. Before the pandemic, only about 180,000 families qualified for state rental assistance, indicating a 10% surge in the number of families grappling with housing insecurity and homelessness. 

These vulnerable populations encompass single mothers, the elderly, individuals with disabilities, large families, and impoverished individuals across the country. Despite the escalating crisis, the Housing Ministry and Treasury have yet to formulate a comprehensive plan to address the dire need for public housing, leaving hundreds of thousands of families without stable shelter.

According to Danny Gigi, CEO of the Public Housing Forum, "The severity of the current situation lies in the precariousness experienced by families reliant on the goodwill of landlords, perpetually uprooted from one dwelling to another, unable to establish stability for themselves and their children." 

Moreover, these families encounter significant obstacles in securing housing due to their financial constraints, inability to provide guarantees, and difficulties meeting rental payments, heightening their risk of homelessness. 

"Even those fortunate enough to secure accommodation often find themselves inhabiting neglected and unsuitable living spaces," Gigi said, emphasizing that "The Treasury and the Housing Ministry are aware of the inadequacies of the current rental assistance model, both in Israel and globally. 

"Despite this, they persist in perpetuating a flawed system that disproportionately impacts hundreds of thousands of families, merely to appease landlords, all while neglecting the viable alternative of public housing," he said. "This disregard exacerbates inequality and further marginalizes the poor."

MK Friedman, who initiated the inquiry, stated that "We are witnessing a significant uptick in demand for rental assistance compared to previous years. However, for over a decade, assistance rates have remained stagnant, falling far short of market prices, particularly in major urban areas. Furthermore, the Israeli government has allocated zero funds in the 2023-24 budget cycle to procure new apartments for public housing, exacerbating the crisis," she said.

"Access to secure housing is a fundamental right for every family, particularly those with limited means."