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Haredi housing shortage worsening

Shai Pauzner YnetNews
Haredi housing shortage worsening - Israel - Housing

Geocartography knowledge Group reveals that solving ultra-Orthodox population's housing problem would require construction of 4,000 new apartments a year. At the moment, more than 3,000 housing units are missing

The direct result of the ministry's decision is that a project including 1,100 housing units for the ultra-Orthodox public in Modiin Illit's Matityahu neighborhood is slated to be canceled.

 "This may worsen the housing shortage in the haredi sector, which has yet to receive a constitutional response," says Dr. Rina Degani, research director and managing director at Geocartography, which recently examined the situation of the haredi housing market.

 According to the findings of a Geocartography survey, the growth rate in the haredi sector creates a fixed demand for some 6,500 housing deals a year – about 6.5% of all deals in the residential real estate field carried out in the past two years.

 Modiin illit has some 40,000 residents due to the comfortable housing prices and the communal fabric, which meets the target audience's demands.

 According to a study carried out by Geocartography's economic division, the demand for apartments in the haredi sector requires the construction of at least 4,000 new flats every year, in addition to some 2,500 second-hand apartments.

Most apartments go to young people

According to Geocartography, the ultra-Orthodox public in Israel is comprised of some 700,000 people, which make up about 130,000 households. Some 75% of the demands for apartments in the haredi sector – about 4,800 housing units – are made by young couples.

 While about two-thirds of the secular sector purchase second-hand apartments, only one-quarter of the haredi sector buy second-hand flats. Most prefer to purchase a new apartment from a contractor.


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