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13 Adar I 5771 - February 17, 2011 | Mordecai Plaut, director Published Weekly
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NEWS
Chareidi Sector Lacks Over 30,000 Apartments

By M. Green

"The dire shortage of professional workers in the construction industry will lead to a dramatic drop in buildings starts in the chareidi sector in the near future," warned Eldad Nitzan, chairman of the Chamber of Commerce's Union of Professional Construction Personnel Companies. Despite the acute apartment shortage, he says, human resources companies are unable to meet the demand for professional workers due to lower quotas for professional foreign workers in the construction industry.

According to Housing Ministry estimates, of the 100,000 apartments lacking in the market — due to the gap formed over the past decade between the rate of housing starts and the completion of new housing units annually — some 30,000 were apartments that should have been built for the chareidi sector, but never got off the ground.

In recent years, of the 40,000 new households created in an average year, an estimated 15-20 percent are chareidi households, which means about 7,000 new housing units should be built annually for new chareidi households — without regard to the housing shortage that has accumulated over the past decade.

Nitzan says in order to cover the cumulative surplus demand, 10,000 housing units would have to go up every year just to meet the needs of the chareidi sector. "In practice," he notes, "construction in the chareidi sector is less than half that amount."

The chart shows the building stats in several chareidi communities over the past 10 years.

 

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