Have the social protest, the Trajtenberg Committee, and high home prices caused a change in the mix of housing starts by contractors? According to an analysis of Central Bureau of Statistics data by Eldar Marketing, there were 2,726 housing starts of three-room apartments nationwide in 2011, 42% more than the 1,914 housing starts of three-room apartments in 2010.
The largest change in housing starts for small apartments was in Haifa, with a 170% increase, from 34 three-room apartments in 2010 to 92 apartments in 2011. In Jerusalem, housing starts of three-room apartments rose 138% from 115 apartments in 2010 to 274 apartments in 2011.
In Tel Aviv, housing starts of three-room apartments rose almost 50% to 660 apartments in 2011 from 442 apartments in 2010. In Rishon LeZion, housing starts of three-room apartments rose 23% to 94 apartments in 2011 from 76 apartments in 2010.
Adler Marketing CEO Ronny Cohen said, "Large cities have finally realized the need for housing for young couples. Local authorities realize that three-room apartments attract young people, injecting new blood. Most of the small apartments built last year are located in large cities, which were the first to read the demand map. It should be remembered that it takes at least a year from the planning of a new project until the start of construction, which is why I believe that we'll see this trend spread to smaller towns and the periphery in the coming years."
However, some people doubt that the jump in percentages and the increase in absolute numbers are not real news. Commenting on the Central Bureau of Statistics figures for the capital, veteran Jerusalem contractor Haim Zaken says, "The figures on the increase in the number of small apartments are encouraging, but it should be remembered that 274 housing starts of small apartments is a miniscule figure that is far from meeting the demand for these apartments in the city."
Published by Globes [online], Israel business news - www.globes-online.com - on April 9, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012