Israel's Housing Crisis, a Decade After Its 'Tent Revolution'

After coronavirus lockdown restrictions, some city-dwellers are leaving for homes in the countryside - AFP
After coronavirus lockdown restrictions, some city-dwellers are leaving for homes in the countryside - AFP
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Israel's Housing Crisis, a Decade After Its 'Tent Revolution'

After coronavirus lockdown restrictions, some city-dwellers are leaving for homes in the countryside - AFP
After coronavirus lockdown restrictions, some city-dwellers are leaving for homes in the countryside - AFP

Ten years since protests against the cost of living rocked Israel, affordable housing remains just as scarce, even prompting some city-dwellers to seek cheaper living on a rural kibbutz.

The 2011 "tent revolution" saw young Israelis furious at sharp rises in rents erect shelters on the upmarket Rothschild Boulevard in the heart of Tel Aviv.

Thousands of protesters soon took to the streets across Israel, shouting slogans demanding social justice.

Such widespread social upheaval had not been seen in Israel since the early 1970s, when thousands of people, led by a group called the Black Panthers, campaigned against racial discrimination suffered by Mizrahi Jews of Middle Eastern descent.

But many of the demands of the tent revolution remain a dream.

"Since then, prices have continued to increase," said Stav Shaffir, a figurehead of the 2011 protests.

"Social housing -- important in the 1960s and 1970s -- has been cut back so that almost everyone is tied to the private market," Shaffir told AFP.

The private housing market is largely unregulated in Israel.

Shaffir, who was later elected to parliament, introduced the "fair rental law", passed in 2017 to strengthen tenants' rights.

Property must now be in "good condition and the repairs are done at the expense of the owners... who can no longer evict the tenants as quickly as before," said the 35-year-old activist, who heads Israel's Green Party.

But the law has had limited impact on rent prices, which are not capped in Israel, said Danny Ben-Shahar, director of the Alrov Institute for Real Estate Research, at Tel Aviv University.

Low borrowing rates coupled with population growth -- in a country with both high birth and immigration rates -- means demand for apartments outstrips supply.

The result is a "drastic" increase in house prices, which has a knock-on impact on rents, Ben-Shahar said.

"Housing is still a major concern," he added.

The problem is especially acute in Tel Aviv.

The Mediterranean city is ranked as the fifth most expensive city in the world in The Economist magazine's latest cost-of-living report -- ahead of New York and Geneva.

"To buy a four-room apartment costs on average three million shekels ($920,0000) in Tel Aviv, and 1.7 million shekels elsewhere ($520,000)", he said.

Such costs price out all but the wealthy.

For rent, the average price of a studio in Tel Aviv is 3,300 shekels (about $1,000), double that of the northern port of Haifa, said Tal Kopel, vice president at Madlan, a leading real estate site.

In addition, property tax can add hundreds more shekels per month.

An AFP journalist who recently visited several two-room apartments in central Tel Aviv found rents of around 6,000 shekels ($1,840), including taxes.

But the dramatic impact of the Covid-19 pandemic has prompted a downward correction in rent prices.

After years on the up, prices slumped 15 percent last May, according to the Bank of Israel, although prices have since picked up again.

While demand for small apartments for singles and couples remains strong, some families are moving out.



NATO Appoints Outgoing Dutch PM Rutte as Its Next Secretary-General 

NATO Secretary-General Jens Stoltenberg (R) and Netherlands' Prime Minister Mark Rutte hold a press conference at the NATO headquarters in Brussels, on April 17, 2024. (AFP)
NATO Secretary-General Jens Stoltenberg (R) and Netherlands' Prime Minister Mark Rutte hold a press conference at the NATO headquarters in Brussels, on April 17, 2024. (AFP)
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NATO Appoints Outgoing Dutch PM Rutte as Its Next Secretary-General 

NATO Secretary-General Jens Stoltenberg (R) and Netherlands' Prime Minister Mark Rutte hold a press conference at the NATO headquarters in Brussels, on April 17, 2024. (AFP)
NATO Secretary-General Jens Stoltenberg (R) and Netherlands' Prime Minister Mark Rutte hold a press conference at the NATO headquarters in Brussels, on April 17, 2024. (AFP)

NATO allies on Wednesday selected outgoing Dutch Prime Minister Mark Rutte as NATO's next boss, as the war in Ukraine rages on its doorstep and uncertainty hangs over the United States' future attitude to the transatlantic alliance. 

Rutte's appointment became a formality after his only rival for the post, Romanian President Klaus Iohannis, announced last week that he had quit the race, having failed to gain traction. 

"The North Atlantic Council decided to appoint Dutch Prime Minister Mark Rutte as the next Secretary-General of NATO, succeeding Jens Stoltenberg," NATO said in a statement. 

"Mr. Rutte will assume his functions as Secretary-General from 1 October 2024, when Mr. Stoltenberg’s term expires after ten years at the helm of the Alliance," it added. 

After declaring his interest in the post last year, Rutte gained early support from key members of the alliance including the United States, Britain, France and Germany. 

Others were more reticent, particularly Eastern European countries which argued the post should go to someone from their region for the first time. 

But they ultimately rowed in behind Rutte, a fierce critic of Russian President Vladimir Putin and a staunch ally of Ukraine. 

Stoltenberg said he warmly welcomed the selection of Rutte as his successor. 

"Mark is a true transatlanticist, a strong leader, and a consensus-builder," he said. "I know I am leaving NATO in good hands." 

NATO takes decisions by consensus so Rutte, who is bowing out of Dutch politics after nearly 14 years as prime minister, could only be confirmed once all 32 alliance members gave him their backing. 

Rutte will face the challenge of sustaining allies' support for Ukraine's fight against Russia's invasion while guarding against NATO's being drawn directly into a war with Moscow. 

He will also have to contend with the possibility that NATO-skeptic Donald Trump may return to the White House after November's US presidential election. 

Trump's possible return has unnerved NATO leaders as the Republican former president called into question US willingness to support other members of the alliance if they were attacked.