House price revival may drag on Israel’s economy

Significance

Short-term government policies have consistently failed to contain price increases, much less lower them. As a result, sharply rising housing prices over more than a decade have raised costs for many families.

Impacts

• The growing need to meet climate change-related targets may slow the infrastructure development needed to expand housing supply.
• Housing affordability could re-emerge as a major political issue.
• The post-pandemic era may spur changes to the housing market, easing price pressures in urban areas that experienced the sharpest increases.