The organization for economic cooperation and development (OECD) confirmed the aim of property prices in Israel, praised the law on fair rent and encouraged the government to invest in subsidies for long-term rental housing, not to subsidize its purchase.
According to the OECD, the average cost of housing in Israel is 8 annual family income, whereas in most Western countries it ranges from 3.5 to 6 annual income.
The analysts note that the growth of prices for the purchase of housing greatly exceeded the growth in rental prices.
The report noted government activity aimed at reducing the growth rate of housing prices, however, the authors of the report point to the high cost and ineffectiveness of some of them, including the flagship program of the Minister of Finance Moshe Kahlon «the new settler».
The drafters of the report recommended that the government of Israel to invest in young couples subsidize the cost of rental housing, especially in the presence of long-term contracts, not to help them invest in buying your own apartment.