Executive Summary

Israel faces a rapidly escalating demographic challenge: its population aged 65 and over is projected to grow from approximately 1.2 million today to 1.7 million by 2040. This growth creates unprecedented demand for appropriate, affordable, community-integrated housing solutions for seniors. The prevailing options—aging alone in increasingly unsuitable private homes, or transitioning to institutional care—leave a vast gap in the housing continuum.

This policy brief synthesizes the findings of a joint research initiative by the Israeli Ministry of Construction and Housing and the Milken Innovation Center (October 2024) and follow-up work, which investigated the feasibility of community-cooperative housing (senior co-ops and co-housing) as a viable alternative for Israel’s aging population. The study encompassed a broad community demand survey, a nationwide potential-sites survey among local authorities, international benchmarking, and pilot-level feasibility analysis across three implementation tracks: local authorities, market developers, and policy-level infrastructure.