For generations, the Israeli dream has been cemented in the concept of property ownership—a cornerstone of financial security and Zionist stability. Yet, a startling admission from Shamai Kama, CEO of Ashtrom Long-Term Rentals, challenges this sacred ethos. His direct advice to his own children—to choose long-term renting over purchasing—signals a potential seismic shift in the nation’s real estate philosophy, driven by a maturing market and economic pragmatism.
The New Real Estate Reality
- The Unexpected Advice: Shamai Kama, a leading figure in institutional housing, publicly recommended that his children rent long-term rather than buy, citing current market volatility.
- The Economic Driver: High interest rates and skyrocketing property prices have lowered the “real return” on ownership, making renting a potentially more stable financial path.
- Institutional Shift: The comments surfaced following Ashtrom’s win of a government tender to build 600 rental units for hospital staff, highlighting a state-backed pivot toward institutional leasing.
- Cultural Shock: This perspective contradicts the traditional Israeli narrative where homeownership is the primary vehicle for wealth accumulation.
Breaking the Taboo: A Developer’s Surprising Stance
It is a rarity in the business world for a high-ranking executive to advocate for a lifestyle that seemingly undermines the traditional sales market, yet Shamai Kama’s recent comments have done exactly that. As the CEO of Ashtrom Long-Term Rentals, a subsidiary of the construction giant Ashtrom Group, Kama is at the forefront of Israel’s housing evolution. His assertion that buying a home is no longer the automatic “best route” for young people is based on hard economic data rather than mere sentiment.
This bold perspective was shared in the context of Ashtrom securing a significant government tender. The project involves constructing long-term rental housing specifically for 600 hospital staff members. This venture provided Kama a platform to address the broader housing debate reported by TheMarker. By suggesting that the institutional rental model is not just a stopgap but a viable lifestyle solution, Kama is voicing an opinion that many financial analysts have whispered but few industry leaders have dared to shout: the era of “ownership at any cost” may be drawing to a close.
Does the Math Support the Rental Revolution?
While the emotional pull of owning land in Israel is powerful, the financial calculations for the younger generation are becoming increasingly complex. Kama’s argument rests on the convergence of high property prices and elevated interest rates, which together create a barrier to entry that was virtually nonexistent for previous generations. The logic suggests that when the cost of borrowing money exceeds the appreciation value or the utility of the asset, the “security” of ownership becomes an illusion.
This opinion reflects a broader trend recognized by the Israeli Housing Ministry and various analysts. As noted in reports by TheMarker and other outlets, the government is actively exploring methods to bolster the long-term rental market. This is a strategic move to align Israel closer to European models, where renting is a standard, life-long choice rather than a sign of financial delay. By championing institutional rentals—professionally managed complexes rather than private landlord agreements—Israel is attempting to solve a rental crisis characterized by rising costs and a lack of supply.
| Feature | Traditional Ownership Model | The Emerging Rental Model (Ashtrom Vision) |
|---|---|---|
| Primary Goal | Asset accumulation and security. | Financial flexibility and lifestyle stability. |
| Barrier to Entry | Extremely high (down payments, mortgages). | Low (security deposits, monthly rent). |
| Market Suitability | Best during low-interest periods. | Viable during high-interest/inflationary periods. |
| Cultural Status | The “Israeli Standard” of success. | A growing, pragmatic alternative for young professionals. |
Navigating the New Housing Landscape
For Israelis and those looking to move to Israel, understanding this shift is crucial. Here is how to evaluate the current market opinion:
- Analyze Institutional Availability: Look for government-backed tenders or corporate-managed complexes (like Ashtrom’s), which offer more stability than private landlords.
- Calculate Real Returns: Do not assume buying is automatically profitable. Compare mortgage interest costs against potential rent and market investment returns.
- Monitor Policy Changes: Watch for new Housing Ministry incentives that may make long-term leasing even more attractive or subsidized.
Glossary
- Institutional Rental: Housing complexes owned and managed by large corporations or entities, rather than individual private landlords, offering greater stability and standardized contracts.
- Real Return: The actual profit or benefit from an investment after accounting for inflation, interest rates, and other costs.
- Tender: A formal process where the government invites bids for large projects, such as the construction of the 600 housing units for hospital staff mentioned in the text.
- Ashtrom Group: A major Israeli construction and real estate conglomerate, the parent company of the subsidiary led by Shamai Kama.
Methodology
This article is based on an analysis of recent reports from the Israeli business press, specifically TheMarker, regarding statements made by Shamai Kama, CEO of Ashtrom Long-Term Rentals. The reporting focuses on his public opinion regarding housing strategies for the younger generation and the context of Ashtrom’s recent government tender win. All perspectives on market trends are derived from the provided text.
Frequently Asked Questions
Q: Who is Shamai Kama and why does his opinion matter?
A: Shamai Kama is the CEO of Ashtrom Long-Term Rentals. His opinion carries weight because he is a major player in the construction industry, yet he is advising against the traditional profit model of selling homes, suggesting a deep understanding of market shifts.
Q: Is the Israeli government supporting this shift toward renting?
A: Yes. The text indicates that the Housing Ministry is actively exploring ways to encourage long-term rentals to address the fact that rising prices have priced many young Israelis out of the market. The tender for hospital staff housing is an example of this support.
Q: Did the CEO say no one should ever buy a home?
A: No. He specifically noted that “for my kids,” he recommends long-term renting. This advice is tailored to the current economic climate—defined by high prices and interest rates—facing the younger generation, rather than a blanket ban on ownership.
Q: What is the specific project that sparked this discussion?
A: The discussion arose after Ashtrom won a government tender to build a rare institutional rental project consisting of 600 units designated for hospital staff.
The Future of the Israeli Home
The revelation from a top developer that his own children should rent rather than buy serves as a wake-up call for the Israeli market. It suggests that the definition of Zionist resilience is evolving; it is no longer solely about holding a title deed, but about finding sustainable, smart ways to live and thrive in the land. As institutional options grow, the stigma of renting may fade, replaced by a modern, economically savvy approach to housing.
The Bottom Line
- Executive Insight: A top construction CEO advises the next generation to rent, citing poor conditions for buying.
- Market Forces: High interest rates and entry costs are making ownership less attractive financially.
- Policy Support: The government is backing this shift through tenders for long-term rental projects.
Why We Care
We care about this development because housing is more than just economics in Israel; it is the physical manifestation of settling the land. If the “Start-Up Nation” is pivoting toward a rental model, it demonstrates adaptability and maturity. It ensures that young Israelis—the soldiers, the engineers, the doctors—can continue to live in high-demand areas without being crushed by debt, ultimately securing the nation’s social and economic future.
