The “Price for Resident” (מחיר למשתכן) program is an Israeli government initiative aimed at making homeownership accessible for first-time buyers, especially young couples and families. Launched in late 2015 under the leadership of former Finance Minister Moshe Kahlon, this flagship program offers significant housing discounts by subsidizing land costs for developers, enabling them to sell homes at prices below market value.
Who is Eligible?
The program primarily targets individuals and families without housing, including:
- Married couples or couples registered for marriage.
- Singles aged 35 and older.
- Single parents with a child under 21 living with them.
- Individuals with disabilities aged 21 and above.
To qualify, applicants must meet specific criteria, such as not owning or renting property under certain conditions in the last six years.
How Does the Program Work?
Developers bid on subsidized land in government tenders, competing to offer the lowest price per square meter. Once the land is allocated, eligible participants enter lotteries for the chance to purchase these discounted homes. Discounts can reach hundreds of thousands of shekels, depending on the location and demand.
The Process:
- Eligibility Certificate: Applicants must obtain a certificate proving they meet the criteria.
- Lottery Registration: Eligible individuals can register for lotteries published periodically by the government.
- Selection and Purchase: Winners are invited to choose a home based on their lottery position.
Special Features of the Program
- “Young Resident” Track: Singles aged 26–35 can apply without participating in a lottery, provided they meet specific eligibility criteria.
- Local Resident Preference: Those living in the area for at least three of the past ten years receive priority for homes built in their municipality.
- Lottery Tiers: Applicants are divided into tiers based on when they applied, with earlier applicants given priority in lotteries.
Challenges and Considerations
While the program offers significant benefits, delays between land allocation, construction, and home delivery can span several years. Additionally, the requirement to sell existing properties for those upgrading their housing situation adds complexity.
How to Apply
Applicants start by obtaining an eligibility certificate through one of three housing companies: Amidar, Milgam, or Alonim. Registration can be done online or in-person, depending on the need for supporting documents. The process involves a fee of 187.20 NIS. Once certified, participants can register for lotteries via the official government website.
The “Price for Resident” program represents a critical step toward affordable housing in Israel, giving many families the opportunity to own their first home at significantly reduced prices.
