The rental market in Israel over the past decade has reached a boiling point. Precisely at a time when more young people and students want to be close to employment, education, and transportation hubs – prices are moving further away from them. Between chasing old apartments at unreasonable prices and long waiting lists for controlled projects, a reality has emerged where an entire generation struggles to build an independent life.
The data is clear and worrying: the cumulative increase in rental prices over the past five years is estimated at around 20%, leaving many out of the game. Meanwhile, classic construction processes get stuck in planning corridors for many years, and supply simply cannot keep up with demand. But what if there was another way? What if there were a solution that is fast, affordable, high-quality, and above all, immediate?
This is where a new and ambitious initiative led by "The Rental Unit" company comes into play: a national housing project called "Young People in 120" – neighborhoods built in just 120 days, using modular construction from shipping containers, offering rental units at reduced prices for young people. "The technology exists, the projects are already working around the world and in Israel, and the message is simple: instead of waiting years – you can build within a few months," says Gil Segal, Director of the Mobile Buildings Rental Unit.
According to him, the real barrier in the Israeli housing market is not just the price, but the time: "Traditional construction requires extensive planning, a large workforce, heavy budgets, and above all, long waits for approvals. Modular construction from containers, on the other hand, eliminates most of these barriers. The buildings are manufactured in a factory, arrive ready on site, are assembled quickly, and allow developers and local authorities to create new supply almost in 'real time,' within just 120 days," he emphasizes.
The Force Driving the Change
In its proposal to the government, the company sets an initial target of 1,000 rental units at reduced prices within 18 months in key demand areas. The idea is simple: establishing modular neighborhoods for young people and students, close to the hottest demand centers, constructed within about 120 days from the moment the land is allocated. The result: creating immediate, high-quality, and controlled supply.
To make this happen, a collaboration model has been developed where every party benefits: the government, local authorities, and The Rental Unit – the three entities that can together reinvent the rental market in Israel.
On the execution side is The Rental Unit group, which brings the technology behind the revolution: mobile modular buildings manufactured in a factory, delivered ready, and assembled on-site at almost unbelievable speed.
At the same time, the Finance Ministry and the Israel Land Authority serve as the public anchors of the project. Through them, the land is provided, and they can approve an accelerated regulatory path that allows skipping years of unnecessary planning. The result: an immediate increase in rental supply without wasting many years on zoning changes and failed planning processes.
Then come the local authorities, those who know the real distress on the ground. They can, almost at the push of a button, approve temporary permits, allow use of idle lots, and provide basic infrastructure that enables such neighborhoods to rise quickly. For them, this is an ideal solution: immediate assistance for young people in the city, improved image, and local economic strengthening.