Rising house prices within Israel’s pre-1967 borders are creating more incentives for poorer families to take up lower-cost housing funded by state-subsidized mortgages in the occupied and annexed territories.
Egged on by the central bank, the government says it has responded to lower affordability by selling more state land, and plans to use tax incentives to increase the supply of housing. The problem is that the international community disagrees with Israel’s definition of where housing expansion is legitimate.
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