During the past seven years, Israel has been confronted with an ongoing crisis in the housing market, defined frequently by the government, the public, and the media as one of the Israel’s most severe economic challenges. Research has shown that the main reason for the rise in housing prices is an ever growing shortage in housing supply, the result of a construction pace lagging behind the growth in demographic housing needs. This lack of supply is met with a growing demand, which results in the current rise in prices. In addition, claims are made that the rise in prices is also caused by preferences for ownership over rental housing, due to the under-developed rental housing market in Israel.

Following this basic analysis, this research recommends two central and complementary solutions which would address the rising prices in the housing market:

1. Increasing the market housing supply, by a degree that will reflect the demographic housing needs
2. Developing the corporate rental housing market, thus creating a valid alternative for home ownership.