Housing in the face of crisis: The influence of Israel's 2011 protest on housing policy

Do social protests affect government housing-related decisions? If so, in what way? To answer this question this study examines the influence of Israel's 2011 social protest on the government's housing policy, using an empirical cumulative-aggregative analysis of housing-related decisions over the past two decades. The empirical analysis is based on two generic classifications of government interventions commonly used in housing literature: first, decisions aimed at increasing the housing stock (supply-side), as opposed to policies aimed at augmenting consumers' financial capacity to obtain adequate housing (demand-side); and second, decisions that encourage homeownership as opposed to those that promote rental housing. The research findings show that the 2011 social protest definitely affected Israel's housing policy, because it prompted the government to engage in housing. However, the interventions introduced focused largely on increasing the inventory of housing units (supply-side) for homeownership and benefited mainly members of the middle class who qualify for mortgages and investors. Thus, despite the increase in government involvement in the post-protest period, Israel's housing policy has remained neoliberal, though in an advanced form of neoliberalism that combines market-oriented policies with centralized tendencies, which we call “centralized neoliberalism.” The study discusses the findings and their implications for various population groups. Given the current global affordable-housing crisis, the findings are relevant to many countries whose existing neoliberal housing policy is failing to address housing-market problems and challenges.