beyond the separation wall, but this approach has reached its limit. A similar scale of construction must now be implemented in neighbourhoods on the western side of the wall, but in a planned and licensed manner. Currently, the delivery and permit systems in East Jerusalem are not equipped to handle the required scale of construction. Additionally, licensed construction involves significant and unavoidable additional costs, including planning, engineering, legal fees, taxes, and land confiscation for public use. To address these challenges, new types of housing, financial products, and development models will be needed to deliver housing that is affordable and commensurate with average salaries.

The method of development significantly affects the type, quantity, and cost of new housing entering the market. This report outlines seven models relevant to development in East Jerusalem. Currently, only two—commercial and self-build—are commonly used. The other four models—cooperatives, purchase groups, partnerships, and development-agency—have precedents in East Jerusalem or Israel and could be expanded to help increase the quantity and affordability of housing in the city by leveraging these new models. 

Meeting East Jerusalem’s current and future housing needs will require a significant change in the financing and delivery of housing. Over the past decade, much of the housing demand has been met through extensive