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The impact of sociodemographic trends on house prices in Israel and the role of public policy in regulating them

ABSTRACT This article examines the impact of sociodemographic trends in marriage, divorce, and rising life expectancy in different districts in Israel on the increase in the number of households and, in turn, on the rising house prices in each of the districts. The findings show that in 2008–17, the Tel Aviv, Jerusalem, and Central districts, which had higher marriage, divorce, and life expectancy rates compared to other districts not only had the largest annual increment in the total number of households but also saw a particularly steep rise in house prices compared to a more moderate rise in the other districts and outlying areas. This state of affairs requires the formulation of a public policy capable of influencing demand and supply pressures in the house market in the various districts, with the aim of regulating house prices in accordance with national needs and government strategies for spreading the population throughout the country.