About Israël

Israel’s cooperative housing movement has undergone significant transformations, evolving from its early 20th-century roots to address contemporary housing challenges.

Historical Foundations

The cooperative housing model in Israel originated with the establishment of kibbutzim and moshavim—collective and cooperative agricultural communities founded by Zionist pioneers. These communities emphasized shared ownership, egalitarianism, and mutual aid, serving as foundational elements in the nation’s development. During the 1950s and 1960s, public housing constituted approximately 60% of Israel’s housing stock, reflecting a strong welfare-oriented approach to housing policy. (cambridge.org, journals.openedition.org)

Contemporary Landscape

In recent decades, the cooperative housing sector has experienced a decline. Of the 394 registered cooperatives, only 93 remain active today, with just 10 established since 1910. The privatization of many kibbutzim and moshavim, coupled with a shift towards neoliberal housing policies, has contributed to this reduction.

Despite these challenges, there is a renewed interest in cooperative housing models, particularly in urban settings. The concept of the “urban kibbutz” has emerged, adapting traditional communal principles to modern city life. These urban cooperatives focus on shared living, social engagement, and community development.

Organizations like Co-Housing Israel (CHI) are pioneering efforts to establish cooperative housing communities, including initiatives tailored for seniors seeking affordable and communal living arrangements. ()

Challenges and Opportunities

The cooperative housing movement in Israel faces several obstacles:

• Land Ownership: With the government owning approximately 90% of the land, acquiring property for cooperative housing is challenging.
• Legal Framework: Current laws do not permit land to be sold below market value, limiting opportunities for cooperatives to secure affordable land.
• Lease Terms: Standard land leases are typically 49 years, which can deter long-term investment in cooperative housing projects.
• Financial Constraints: Access to funding is limited, and there is skepticism from authorities regarding the cooperative model due to past privatizations.

Nevertheless, the growing interest from communities and some policymakers indicates potential for revitalizing cooperative housing. By addressing legal and financial barriers, Israel can harness the benefits of cooperative housing to provide affordable, community-oriented living solutions.

Interview with Yifat Solel, Cooperative Leader

Yifat Solel is a lawyer who advocates for free speech, democratic rights, and creating social change. She is also Chairperson for The Cooperatives Alliance, an organisation of cooperatives that achieve civic economic power. Solel is one of the founders and is a board member of OFEK, a financial cooperative that has taken a role in amending the Israeli Law to allow the operation of Credit Unions. She is waiting to receive the first Credit Union license in Israel in over 50 years. Solel has been going through a lengthy and complicated process with regulators. The regulators had no idea what credit unions were and she had to work with them through the process and she is now waiting to receive her final documents for the license.

Cooperative Housing

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Housing Cooperatives in Israel: A Complex but Growing Movement

Housing co-ops in Israel are more complicated to establish than most other types of cooperatives. They require significant capital to get off the ground, which is why advocates push for more favorable treatment from authorities to gain broader support.

A few years ago, a group of seniors began planning a co-housing project in anticipation of their later years. They spent about 18 months in discussions with Solel, who helped them organize and structure their initiative. This group went on to register as a housing cooperative society—the first to do so in Israel in 40 years.

Solel supported them through a year-long process of drafting bylaws, followed by another year working with regulators to officially register the co-op. Today, the group—comprising over 20 seniors—is actively searching for a site to build their cooperative. However, internal disagreements have made this difficult: half want to live in Jerusalem, while the other half prefers anywhere but there. To resolve this, they hired a consulting firm to assist in selecting a location.

At one point, the mayor of Tel Aviv announced plans to build 120 shared housing units. However, the definition of “shared housing” remains unclear. Solel responded by submitting suggested selection criteria to formalize the process, arguing for a structured tender instead of the current ad hoc approach. The head of Tel Aviv’s municipal department is set to discuss cooperative housing in more depth this June.

Solel continues to be a leading force in promoting cooperatives in Israel. For over 15 years, she has been writing about co-ops and supporting emerging initiatives. One notable success: Jerusalem’s first cooperative coffee shop, which opened in March 2019. With Solel’s guidance, more cooperative projects are likely to follow.

No. of housing co-operatives: 174

No. of members: 150

Source: Movimento (1995)

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