Israel, one of the most densely populated countries in the OECD in terms of population per square kilometer, faces increasing pressure to accommodate housing needs through urban densification. However, the absence of a regulatory framework for financing long-term maintenance in multi-ownership residential buildings poses a significant threat to the longevity, structural integrity, and economic sustainability of the housing stock.
This study seeks to quantify the current and future long-term maintenance debt borne by Jewish households in such buildings and to stimulate public and policy discourse on the necessity of sustainable funding mechanisms.
The research employs the “Depth of the Pit” model, an analytical tool that integrates empirical data from the Central Bureau of Statistics’ Long-Term Household Survey, maintenance cost estimates from the National Authority for Urban Renewal, and CBS demographic projections, simulating debt trajectories through 2050 and 2075 across scenarios of population growth and urban development patterns. Results indicate a current maintenance debt of 57.6 billion NIS in 2023, predominantly tied to older low-to mid-rise buildings (2–10 floors), with projections showing an increase to 136–137 billion NIS by 2050 and 255–258 billion NIS by 2075, driven by a shift toward high-rise structures (21+ floors) that incur higher, more rigid costs due to complex engineering systems.
These findings highlight a mounting financial burden equivalent to 20% of Israel’s 2022 household mortgage debt, underscoring the urgency for preemptive policy interventions.
