Public policy for increasing employment in the construction industry and its contribution to the regulation of housing prices–the case of Israel

This article examines public policy aimed at planning the domestic housing market and regulating employment in the construction industry, as formulated and implemented in Israel in light of the rapid rise in domestic housing prices. It shows that despite their awareness of the growing discrepancy between supply and demand and its impact on housing prices, policymakers acted mainly to suppress the demand instead of speeding up the pace of construction so as to increase the supply of houses. The article concludes with a number of recommendations of ways to increase the number of workers in the construction industry as a means to reducing housing prices.