This chapter examines the evolution of Israel’s housing policy from its inception from a centralized social-democratic policy to a centralized neoliberal one today. The analysis is divided into four periods, each characterized by a different housing policy, reflected in different decisions, policy tools, goals, budgets, and target populations. In the first period (1950s–1970s), Israel’s housing policy was harnessed to achieve broad national goals befitting a centralized social-democratic regime. In the second period (1980s–1990s), in line with the global political-ideological shift toward neoliberalism, the role of the private sector in the housing market increased at the expense of direct government involvement. An atypical episode was the public construction following immigration from the former Soviet Union. The third period (2000–2011) was characterized by the intensification of neoliberal trends in the housing market, with almost no national housing policy. The fourth period (2011–present) is witnessing a recentralization process with the return of state involvement in the housing market, but now, as a regulator aiming to create the market conditions that will attract private developers to engage in housing production. The research findings indicate that centralization has always been Israel’s default response to national crises. Contrary to popular opinion, centralization processes are largely value-free; they can appear in conjunction with diverse ideologies and regimes and do not necessarily ensure more egalitarian and just policy outcomes. We demonstrate this conclusion by discussing the prevailing centralized neoliberal housing policy’s broad social and spatial consequences.