Toward Affordable Housing in Israel
Dramatic price increases in Israel’s housing market prior to 2013 had outpaced the rise in average household income, leaving working families with limited options. To help generate possible solutions, the Milken Institute convened representatives from the National Economic Council, the Ministries of Finance, Construction, and Housing, private-sector investors, academics, architects, urban planners, philanthropists, and social entrepreneurs for a Financial Innovations Lab in Jerusalem in October 2013. The lab examined Israel’s housing supply and demand situation, including gaps in the market, regulatory and financial barriers, and outlined potential roles for investors, philanthropy, and government to address these gaps through public-private partnerships for affordable housing. The group discussed best practices in public-private partnerships elsewhere that would help them design models to increase access to financing for affordable housing as well as new policies regarding accelerated permitting and building timeframes, expanded housing types and price points, additional community engagement, and shared services among others.