Boost Land Supply to Curb Housing Costs

At the "Globes" Kibbutz Momentum conference, Israel Land Authority (ILA) Director General Yaakov Kvint emphasized the need for increased land supply to address the ongoing rise in apartment prices.

Kvint discussed the tender for land at Kibbutz HaOn, which is transitioning into a community settlement as part of an insolvency process. Speaking with Globes editor Bar Lavi, he addressed criticism that the 248 lots at HaOn were targeted only at wealthier buyers and did not prioritize discharged or reserve duty soldiers. In response, Kvint defended the ILA’s approach, citing precedence in cases like Kibbutz Mishmar David, which also dissolved in the past. He explained that the state honored agreements by financing pensions for former members and developing the necessary infrastructure.

Kvint noted that while some believe the HaOn land should have been designated as a public beach, the ILA has focused on ensuring equitable land distribution, with the tender prioritizing reserve duty soldiers, even before October 7. According to Kvint, 63% of the lots were allocated to reservists and disabled IDF soldiers, which he called "an unprecedented number." He added, "There are no tycoons or oligarchs involved. Families from across the country have made reasonable offers for the land."

Kvint also touched on the broader issue of housing prices, stating, "We are seeing a decrease in the prices of land we are marketing. Over the past four years, we have marketed land for 400,000 housing units and seen a 20% drop in land prices." Despite this, he acknowledged that lengthy construction processes, high interest rates, and increased input costs continue to drive up housing prices. He highlighted the 10/90 payment method used by contractors, which transfers large financing costs to them and creates discounts of 8% or more on apartment prices.

To combat rising housing costs, Kvint called for an expanded supply of land and the extension of the 'Target Price' program, especially in peripheral regions. He pointed out that lower prices in these areas could make them more attractive, though cooperation with the Ministry of Finance is needed.

Globes Kibbutz Momentum conference was held in partnership with Israel Discount Bank, Doral Group, the Kibbutz Movement, Kibbutz Industries Association, and the Kama Fund.