Aggressive regulation of private rental will hurt the housing market and will cause an increase in prices

Government policy is trying to increase the supply of rental apartments in Israel by offering extensive subsidies to developers at the expense of the state budget. At the same time, a large rental housing market is actually “subsidize himself” at no cost to the state budget. This market provides about a quarter of the housing units, 50% in Tel Aviv and in some areas in the city even 70%. Most tenants do not abandon the desire to buy an apartment, but need to rent during in transitional stages in their life cycle.