Israel's housing dilemma is complex, made more challenging by the failure of its market to function. A dramatic increase in housing costs over the past five years has outpaced the rise in average household income. This leaves working families with limited options and few apartments for rent or purchase.
The Milken Institute convened a Financial Innovations Lab in Jerusalem to discuss housing supply and demand. The Lab examined the current situation, including gaps in the market; regulatory and financial barriers; and potential roles for investors, philanthropy, and government. Lab participants found that all gaps could be addressed through the formation of public-private partnerships for affordable housing.
The group included representatives from the National Economic Council and the Ministries of Finance and Construction and Housing, private-sector investors, academics, architects and urban planners, philanthropists, and social entrepreneurs. They looked at best practices in public-private partnerships elsewhere that would help them design models to increase access to financing for affordable housing.
"Toward Affordable Housing in Israel" serves as a road map that that involves a mix of project and capital solutions for each stakeholder: municipalities, the central government, developers, and residents.