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The Israeli Housing Market: Structure, Boom, and Policy Response

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

2 Scopus citations

Abstract

The dramatic and continual increase in housing prices after 2008 was a major political issue in this period. Large interest cuts suffice to explain the growth in the price-rent ratio. Rising average income explains most of the growth in rents, which, properly calculated, was also high (though less than that of prices) in this period. Contrary to the general belief, population increase did not play much of a role. Owing to endogenous policy response, housing supply is more elastic than an institutional analysis would suggest. That response, which favoured owner-occupancy over rental, was driven mainly by the salience of the headline housing price index.

Original languageEnglish
Title of host publicationThe Israeli Economy, 1995-2017
Subtitle of host publicationLight and Shadow in a Market Economy
PublisherCambridge University Press
Pages555-586
Number of pages32
ISBN (Electronic)9781108907620
ISBN (Print)9781108830461
DOIs
StatePublished - 1 Jan 2021

Bibliographical note

Publisher Copyright:
© Cambridge University Press 2021.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 11 - Sustainable Cities and Communities
    SDG 11 Sustainable Cities and Communities

Keywords

  • Housing
  • bubble
  • investment
  • monocentric model
  • mortgage rates
  • price indices
  • rent

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