https://www.haaretz.com/israel-news/2023-06-08/ty-article-magazine/.highlight/how-the-west-bank-settlements-became-israels-welfare-state/00000188-9b13-d3a7-adcf-bb1fe8940000
'There is an ongoing phenomenon whereby the state diverts its economic and political attention from those towns to the settlements. This is a conceptual, ideological and political transition from a policy aimed at advancing the so-called development towns [as they are referred to in Hebrew] to one that bolsters the settlements. Of course, it can be argued that the upgrading of various locales within Israel was not done in the most ideal or perhaps beneficial way, but the point is that the towns in question once constituted the national settlement project – until they were replaced by the settlement project in Judea and Samaria, and in the past by the Gaza Strip settlements as well.
The development towns were originally designed as part of an enterprise whose objectives included the integration of new immigrants into Israeli society, the dispersal of the Jewish population throughout the country, and the preservation of state lands. That is also the reason the project was problematic, because the towns suffered for years from inadequate economic infrastructures and from high rates of unemployment. In this sense, the “development mission” was broken off before it was completed, when the political and public agenda shifted to another project involving settling people: occupying the territories.'
Its also backed up by data. Do all poor people move to the settlements? No but they absorb a lot of the poor people. And going forward if most house building is in the settlements, thats where people would go.
https://www.haaretz.com/israel-news/2023-02-15/ty-article-magazine/.premium/go-west-bank-israels-housing-crisis-plan-turns-even-more-israelis-into-settlers/00000186-545c-de95-a1fe-f65f212f0000
As someone who grew up in Ariel but left as an adult, Noam didn’t view signing up for the lottery in this city, located in the heart of the northern West Bank, as a political issue, or as an issue at all. It was purely an economic choice.
“70 percent of the Israelis in the West Bank are ‘quality-of-life settlers’ and only 30 percent are ideological.”
Most of the people coming to the settlements for economic reasons in recent years have been ultra-Orthodox, he added, and they now constitute 40 percent of all settlers. Most live in Modi’in Ilit and Betar Ilit, and the rest in settlements like Immanuel, Ma’aleh Amos, Asfar and Tel Zion."
The thing is that if the government solution to poverty is building homes on internationally disputed land, you have to worry for the next generation. It is cheap until it is not cheap anymore, it is safe until it is not safe anymore. at some point, the west bank will boil over and there would be another October 7 massacre there and people would not be able to live there, then they will move to your cheap city and then you would be priced out (just like my SIL and BIL have become priced out of bat yam and don't want to move to another israeli city to be priced out yet again). Even if you buy, unless you can buy apartments for every child, the family would just end up getting priced out.
We have a housing crisis in the UK, but its not as acute. The stakes are not so high and as a community we can also establish new jewish communities. Borehamwood is a really good example, it is now far more jewish than it was even 10 years ago cos younger people have moved there and it is quite affordable compared to the likes of Finchley or Hendon (though as i was looking near the station, i found that it wasn't that much more expensive to buy a flat in London compared to a terraced in borehamwood, but if you live over a mile away from the station you have more options). or even canvey island in the case of Haredim. There is also more awareness of the housing crisis in the UK and long term i do believe the government will do something i.e. relax planning permission and tax BTL landlords, which will alleviate the overall housing crisis including for Jewish people. In israel, people don't seem to have that same level of interest in their economic survival given that they are mostly concerned that they would not be murdered in their beds by hamas terrorists. The reality is that you need to be solvent to lead a good life and I would not want to live a life with such low expectations that my chief worry is whether I would be killed in my bed.