State Housing Discount Programs Cost Israel NIS 40 Billion Since 2022
State housing discount programs have cost Israel nearly NIS 40 billion in lost land revenue and subsidies since 2022, according to Ministry of Finance data.
Cost of State Housing Subsidies Reaches NIS 40 Billion Since 2022
State-backed housing discount programs, which began as "Mechir le-Mishtaken" in 2017 and evolved under various names, have cost the state approximately NIS 40 billion in lost revenue and direct subsidies since 2022, according to the 2025 financial reports of the State of Israel.
According to Accountant General Michal Abadi-Boiangiu, total state assets stand at approximately NIS 2.167 trillion, with state-owned land alone valued at over NIS 1.1 trillion. This massive valuation underscores the critical economic importance of land sales to the national budget.
Revenue Losses and Direct Subsidies
Data from the Ministry of Finance reveals that the state lost about NIS 26 billion in direct land value since the beginning of 2022, alongside an additional cumulative loss of NIS 10 billion in foregone revenue from reduced-price and target-price housing programs.
"Some program winners cashed out immediately, selling apartments without ever living in them to secure profits at the expense of the state budget."
Beyond missed revenue, the state injected substantial cash into the projects. An extra billion shekels went toward development subsidies, while half a billion shekels were disbursed as direct grants to buyers. Total state expenditure on these discounted housing initiatives reached NIS 27.2 billion.
Policy Flaws and Speculative Exits
Calculations show that total state outlays and lost receipts for the discounted programs hit NIS 13.462 billion, bringing the combined fiscal cost to nearly NIS 40 billion. Critics point out that these funds subsidized apartments for segments of the population that did not always require financial assistance, as past lotteries were open to the general public.
Furthermore, regulatory oversight failed to prevent speculative behavior. Buyers waited out mandatory restrictions—often compounded by construction delays of five to seven years—only to sell their subsidized apartments immediately for millions in personal profit.
