Fall in housing supply under tax pressure; The production cycle was 33% less than "need".
The combination of 4 political and economic shocks in the last year and a half lowered the rate of housing construction in Israel to two thirds of the "estimated market need".
Last year, the distribution of housing production in all cities decreased by 25% compared to 1,403 and reached the level of 392 thousand housing units.
This spring, the number of residential units that contractors "started to build" by obtaining permits from the municipalities decreased by 13% compared to the spring of last year.
and reached 95 thousand units.
The "housing market need for new supply" over the next 10 years at least, according to estimates, is about 590,000 units per year.
In this way, what was built in the cities during the 5 seasons leading up to the beginning of this summer, is about 33% lower than the "market need".
4 reasons for the contraction of the housing construction market: imposition of taxes on the construction market/ production inflation/ 2 wars in one year/ 27.5% social security rate.
More details on the housing market Mitzpe channel.