Public Housing in Israel – Effects of Reducing the Stock of Appartments on Those Entitled to State Support

The paper focuses on the impact of the public housing shortage on people entitled to housing in Israel. The review is based on the State Comptroller’s results and conclusions, ensuing a follow-up audit issued in July 2024. Notably, Israel affords a government assistance system in public housing, a central component of the state’s protective net to the weaker in society. The system includes public housing appartments that the state rents indefinitely at subsidized prices to eligible tenants. The state is responsible for managing the pool of appartments, including the purchase and sale to eligible citizens under a law that came into effect in 2013. The law allows families in public housing to purchase appartments at a significant discount to guarantee shelter and ensure assets for the next generation. Public housing stock has been shrinking for several decades, mainly because the state sold more appartments than it bought. Simultaneously, the number of eligible people waiting for a public appartment increased, and the line extended. This phenomenon creates a gap between supply and demand, which prevents a vulnerable population from exercising the right to public housing. Hence, the paper is part of a PhD study that sheds light on the public housing shortage and its implications.