Average rent in Israel jumps by 60% in 6 years

Average rent for housing in Israel has jumped by 60 percent in the past six years, peaking to more than half of the median salary in this country, a survey commissioned by Israel's Ma'ariv daily shows on Tuesday. Amid a sharp rise in the overall cost of living in recent years, the average monthly rent in Israel has reached 3,200 shekels (870 U.S. dollars) in 2013, according to the survey. In Tel Aviv, the average rent has jumped by 90 percent to a record of 5,290 shekels (1,434 dollars). Average rent for a two-room apartment in Tel Aviv has reached 1, 030 dollars in 2013, and 1,300 dollars for a three-room apartment. Amid a growing public discontent, especially among young Israelis who struggle to pay the rent, the housing cabinet approved on Monday a new governmental plan aimed at lowering housing costs. The plan sets a target of constructing 25,000 housing units and issuing 80,000 new construction permits a year. As part of the plan, the government will push forward the use of military lands in high demand areas for constructing new residential neighborhoods. However, the cabinet couldn't reach conclusion on finalizing its affordable housing plan, and postponed the vote on this issue to the end of June. Affordable housing was a major demand of the wide-scale social protest in 2011, which brought hundreds of thousands of Israelis to the streets to protest the high costs of living and unequal distribution of wealth and resources in the country. The discontent is growing among the Israeli public amid the upcoming authorization of the 2013-2014 budget, which includes austerity measures such as tax hikes and budget cuts that will severely handicap the lower and middle classes in Israel.