A survey conducted by the contractors' organization in Tel Aviv and the central region indicates a slowdown in contractors' activity due to an increase in unsold apartment inventory. 18% of contractors refrain from participating in new tenders, and 43% of them are considering converting apartments into long-term rentals at regulated prices. The current situation in the real estate market, where many apartments remain unsold, is causing economic difficulties for contractors, who are struggling to sell their existing inventory.
While long-term rentals appear to be a solution for contractors, some are concerned about its impact on the real estate market, as rental apartments may lower the value of new apartments. Additionally, many young people find it difficult to purchase an apartment due to high rental prices, which are comparable to mortgage payments. This situation creates significant economic disparities between the rich and the poor, with many young people forced to consider leaving the country to find adequate housing solutions. The government is perceived as not acting sufficiently to assist the younger generation in the challenging real estate market.