Title: Study Reveals Positive Impacts of Public Housing Sales on Residents’ Socio-Economic Mobility and Neighborhood Quality
Date: 20.09.2023
A recent study conducted by the Bank of Israel has shed light on the long-term effects of public housing sales on residents who purchased their apartments at a discount. The findings suggest that only a quarter of the discount buyers relocated within five years after purchasing their apartment, indicating increased socio-economic mobility. Additionally, the study highlights positive impacts on neighborhood quality and capital accumulation for these residents.
Examining the financial situation of households that participated in the purchase operations during the early 2000s, the study focused on approximately 30,000 tenants who availed significant discounts to become homeowners. Contrary to claims made by the Ecclesiastical Forum, the study found that the majority of these discount buyers chose to stay in their apartments rather than using them as investment properties.
The research also revealed that apartment relocations were more prevalent among young households experiencing changing needs, particularly due to the arrival of children, or whose apartments were in poor conditions that could not be easily renovated. According to Tamar Ramot-Niska, a leading researcher, this trend demonstrates the efficiency of the allocation and planning process as families can choose apartments that better suit their needs.
Furthermore, the study indicated that the sale of public housing apartments to their tenants had a profound impact on the quality of residential neighborhoods. As families began to accumulate capital through homeownership, the overall standard of living in these communities improved, disproving criticisms regarding the renewal of the sales law from the Finance and Housing Ministries.
However, Ramot-Niska criticized the government for not purchasing enough apartments to compensate for the ones that were sold, resulting in a shortage of affordable housing for families in need. The Ministry of Housing’s recent report supported this claim and highlighted the consistently increasing revenue from public housing sales. Remarkably, for every 4.7 apartments sold by the state, only one was purchased as replacement stock.
While the study emphasizes the positive outcomes of public housing sales, it also calls for a more balanced approach to ensure the availability of affordable housing for those still on waiting lists. The findings underscore the need for the government to commit to its pledge of purchasing an adequate number of apartments to bridge the gap created by the sale of public housing units.
In conclusion, the study conducted by the Bank of Israel provides significant insights into the effects of public housing sales on residents and their communities. With increased socio-economic mobility, improved neighborhood quality, and capital accumulation, the findings support the notion that public housing sales can have positive, transformative impacts.