The “housing crisis” is an attempt to bring on early elections as Prime Minister Binyamin Netanyahu provides solutions and the Israeli media encourage a campaign blaming him.
The cost of homes in Israel has risen continually for decades, and bureaucratic agencies have maintained a shortage of land and housing that favors builders. Netanyahu is on record for trying to change the extant centralist system of government land ownership. Prices have risen more sharply in the last year or two, in part due to the building freeze, absentee overseas ownership and a plethora of high cost housing for the latter.
However, the issue of housing, which mainstream media have declared has suddenly become a “crisis,” has succeeded in igniting a large scale movement after having begun in Tel Aviv as a left-wing funded protest, with the involvement of the New Israel Fund. A correspondent for the Washngton Post suggested that the protest movement may be Israel's version of an Arab Spring uprising, as there is no need to protest Israel's strong economy and even stronger democracy.
Globes, Yediot Acharonot and Voice of Israel government radio have been instrumental in providing a running commentary that has promoted what they have constantly termed to be a 'crisis' following failures to whip up enthusiasm for anti-Netanyahu rallies around the issues of kidnapped soldier Gilad Shalit and the cost of cottage cheese.
Elections are scheduled for 2013 but can take place sooner if the coalition government falls.
Prime Minister Netanyahu is clearly worried. A poll published by the left-wing Haaretz newspaper, which is strongly against the Netanyahu government, revealed that his “approval” rating has dropped to 32 percent, in contrast to 51 percent after he spoke to the United States Congress in May.
The same poll showed that an overwhelming 85 percent back the housing protest movement, which originally had less sympathy as it seemed like a trendy group's unrealistic demand for affordable housing in the commercial center of the country, Tel Aviv. The organizers soon saw to its spread to other areas.
Prime Minister Netanyahu scrapped a planned trip to Poland Tuesday to deal with the political crisis, with Kadima leader Tzipi Livni and coalition partner but arch-political enemy Defense Minister Ehud Barak waiting in the wings.
Voice of Israel’s Yaron Dekel jumped on the Prime Minister for not delivering his speech on answers to the housing problem at the scheduled 11 A.M. time. “What? Again?” Dekel asked incredulously, adding superfluously that tardiness is a habit of the office of the Prime Minister.
Prime Minister Netanyahu said he will issue immediate measures to open the housing market and change the bureaucratic and marketing system for more and cheaper residential units. He accused the government land agency of holding on to land, a situation he suggested must be changed through deep-seated reform.
The Prime Minister said prices will be cut so that housing will be more affordable to students, young couples and recently-discharged soldiers. He also said bus and train fares will be cut so that travel will be more affordable to and from housing areas outside of major urban areas.
Regional Authority heads and small town mayors have said that housing in development towns and Yesha could solve the problem, but transportation would have to be drastically improved.
He also noted the Olmert administration’s decision to restrict marketing of housing, contributing to a growing shortage and rising prices. “There aren’t enough residential units because it takes so many years for the bureaucratic process to approve projects,” a process he said is the worst in the world.”
Construction has increased since he took office, Prime Minister Netanyahu said at the highly-attended press conference this morning.
Prime Minister Netanyahu added that he saw the housing crisis coming two years ago but it has taken that long to convince others to agree to implement changes. For example, six different committees must approve building projects, causing a traffic jam for pending projects.