Breaking Update
Housing Ministry: 2025 growth in the North
Israel's North experienced significant growth in 2025, with the Housing Ministry spearheading development, planning tens of thousands of new homes.
The year 2025 was one of the most significant for the North, a year in which the Ministry of Construction and Housing led a wide array of development, rehabilitation, and strategic planning programs that placed the region at the center of national activity. The Ministry launched unprecedented construction projects, advanced some of the largest “roof agreements” in the North’s history, accelerated the planning of tens of thousands of new housing units, and strengthened civilian and security infrastructures in the confrontation line communities. The scope and intensity of the activity changed the region’s development trajectory, proving that focused government intervention can create deep and rapid change on the ground.
The ongoing involvement of the Ministry of Construction and Housing was also evident in the level of public trust, which was reflected in high demand for government housing programs and the return of young families to view the North as a viable place to live. From “Apartment at a Discount” lotteries, through the rehabilitation of educational and public institutions, to the development of new communities, all the moves made this year indicate a consistent policy aimed at building the future of the North. This activity made 2025 a year in which the Ministry reshaped the region’s development map.
Apartment at a Discount: High Demand in the North Continues to Break Records
The tenth lottery of the “Apartment at a Discount” program in the North was the largest lottery in the region since the program’s launch. As part of the Ministry of Construction and Housing’s efforts to expand housing supply in the North and strengthen settlement, 1,950 housing units were allocated in eight communities – Nof HaGalil, Afula, Kiryat Bialik, Tiberias, Acre, Kfar Vradim, Ma’alot, and Iksal. For these lotteries,
70,526 applicants registered – a clear figure indicating the impact of the Ministry’s development initiatives and the growing public trust in national housing programs being promoted in the North as well. Investments in infrastructure, planning, and community upgrades are what enable families to see the North as a real destination for residence.
Joining this lottery is the ninth “Apartment at a Discount” lottery, in which approximately 4,000 additional apartments were allocated in the North. The high demand in both lotteries is a direct result of the Ministry of Construction and Housing’s actions to increase housing supply, develop communities, and make affordable housing programs accessible to young couples and families. Together, these two lotteries are creating significant demographic momentum and establishing the North as a developing and strengthening region, a process that the Ministry of Construction and Housing is systematically and continuously leading.
Development Momentum Through Roof Agreements and Urban Development
During 2025, under the leadership of Minister of Construction and Housing Haim Katz, the Ministry promoted a series of strategic “roof agreements” that changed the development course of the northern cities and laid the groundwork for rapid growth in the coming decade. One of the key achievements is the new “roof agreement” in Safed, developed by the Ministry and signed with a scope of over 3.4 billion shekels. The agreement includes the establishment of new neighborhoods, development of roads and main traffic arteries, rehabilitation of old areas, and the construction of a new southern interchange – a move initiated and led by the state through the Ministry, which re-establishes Safed as a central hub in the Galilee. This unprecedented investment represents a turning point for the city and its demographic future.
In addition to the agreement in Safed, the Ministry promoted significant development agreements in the cities of Nahariya, Yokneam, and Karmiel. Under the Ministry’s leadership, hundreds of millions of shekels were allocated for the rehabilitation and upgrading of infrastructure in Nahariya; in Yokneam, a planning process was completed to double the city’s housing reserves with the planning of over 6,000 new housing units; and in Karmiel, extensive planning was initiated with the aim of doubling the city’s population in the coming years. The agreements provide a framework and tools for local authorities for accelerated development.
New Settlement and Expansion of Communities in the Galilee
This year, the Ministry of Construction and Housing promoted the planning and establishment of new communities in the Galilee, as part of the effort to expand settlement and strengthen the northern periphery, including in rural areas. As part of this activity, the community settlement “Shibolet” was established, adjacent to Beit Rimmon, which integrates a regular population with a population with special needs, and promotes an innovative model of community living. The establishment of the community of Kedorri is also underway, intended for a second government decision. All these moves are managed and led by the Ministry of Construction and Housing, with the aim of positioning the North as a strategic and established development hub.
In addition to developing new communities, the Ministry also promoted the expansion of existing communities by allocating budgets for the development of public buildings, infrastructure, and access roads.
Concurrently, in July 2025, the recommendations of the Ministry of Construction and Housing were approved by government decision to deepen the subsidy for land development costs in 24 communities adjacent to the border in the North. It was decided that a reserve soldier would pay 50,000 NIS for development, and a non-soldier resident would pay only 100,000 NIS, while the actual development cost typically reaches half a million shekels. Each of these communities is also allocated 2 million NIS for public institutions and infrastructure rehabilitation, and local councils will be allocated half a million shekels for public buildings in each community. This year, approximately 20.8 million NIS were budgeted for the funding of these public institutions, and the deepening of subsidies in northern communities is planned to begin in mid-2026. The Ministry is handling all communities and expansions that are on the national priority map, as part of an overall policy to strengthen the region and ensure a high quality of life for residents.
Strengthening Buildings and Rehabilitating Damaged Areas
This year, extensive activity was required for the strengthening and rehabilitation of buildings due to the security situation, and the Ministry of Construction and Housing fully led these efforts. In Kiryat Shmona, one of the most extensive strengthening operations in recent years was implemented, including infrastructure rehabilitation, upgrading residential buildings, and constructing protected spaces, professionally and in full coordination with local authorities.
In the cities of Beit She’an, Migdal HaEmek, and Tiberias, the Ministry of Construction and Housing also led strengthening work and investments. In Beit She’an, targeted rehabilitation of high-priority buildings was carried out; in Migdal HaEmek, a central phase of the program to strengthen old buildings was completed; and in Tiberias, a broad initiative to improve the resilience of the city’s buildings progressed. These steps, led by the Ministry, strengthen civilian resilience and form the basis for long-term development and safer living for residents.
Furthermore, as part of Operation “With the Lions,” the Ministry of Construction and Housing worked in cooperation with the defense establishment to restore infrastructure, protect damaged buildings, and support local authorities in the process of returning to routine. These initiatives, at the Ministry’s behest and in coordination with security bodies, strengthened the sense of security and laid the foundation for continued civilian, community, and demographic development in the North.
Rehabilitation of Public and Educational Institutions
During the year, the Ministry of Construction and Housing led the rehabilitation and upgrading of schools, community centers, and public buildings that were damaged or required security adaptations due to war damage. In Shlomi and Kiryat Shmona, the Ministry invested over 20 million shekels in the rehabilitation of educational institutions, including adapting protected spaces and improving the learning environment, a move that enabled a safe and stable return to educational frameworks.
Additionally, in Misgav, the Ministry of Construction and Housing led the establishment of four new public institutions – a council building, a public library, a daycare center, and a cultural center – which serve as a basis for strengthening community and educational life in the village. These initiatives, led by the Ministry of Construction and Housing, are part of an ongoing effort to improve public services in the eastern and western Galilee communities and to strengthen local communities.
Adoption of Ministry of Construction and Housing Recommendations in the National Program for the Rehabilitation and Development of the North
This year, the Ministry of Construction and Housing formulated a national strategic plan for the rehabilitation of the North and the promotion of demographic growth, the core of which was adopted by government decision. The plan includes infrastructure development, strengthening communities on the northern border, establishing a planning reserve of approximately 125,000 housing units, and planning long-term solutions for growth and community resilience. It was decided to adopt large parts of the plan, and many of them are led and managed by the Ministry with the aim of ensuring that the North becomes a strategic development hub in Israel.
Vision for the North: The Ministry of Construction and Housing’s Activity Continues with a Forward-Looking Perspective
This year was filled with extensive activity by the Ministry of Construction and Housing in the North, which included initiating and leading strategic plans for the development of new communities, expanding existing communities, strengthening and rehabilitating buildings and public institutions, and responding to needs in light of the changing security reality. These steps strengthened the region’s community and demographic resilience, enabled a safe return to routine, and laid the foundation for the North’s long-term growth, while maintaining a high quality of life and modern infrastructure for the local population.
The Ministry continues to deepen its activity in the North, with plans to expand existing communities, establish new communities, and plan public infrastructure that will support demographic growth. In the coming years, emphasis will be placed on continued subsidies in northern communities, improving educational systems, establishing employment centers and leisure areas, and ensuring a high quality of life for residents. All moves are implemented in coordination with local authorities and the defense establishment, to ensure that the North remains a strategic and safe development hub for young families and for community resilience.
