Betar Illit

Betar Illit is an ultra-Orthodox (Haredi) Israeli settlement in the West Bank, founded in 1985 on land between Bethlehem and Jerusalem. With over 60,000 residents, it ranks among the largest settlements, growing 5-6% annually as ultra-Orthodox families seek affordable housing beyond Israel's coastal cities. The settlement functions as an economic anomaly: residents typically work in Israel proper (20km to Jerusalem, 40km to Tel Aviv) while living under dramatically lower housing costs, creating a commuter-dependent economy with minimal local employment. Unlike secular settlements, Betar Illit's economy revolves around religious study, with high kollel (religious seminary) enrollment and correspondingly low workforce participation rates among men. The 2024 West Bank economic crisis—17% GDP contraction, 500,000 jobs lost since October 2023—affects Israeli settlements less severely than Palestinian areas, though security concerns and road closures disrupt commuting. International law designates the settlement illegal, creating long-term uncertainty about infrastructure investment and demographic growth. By 2026, Betar Illit's trajectory depends on Israeli coalition politics around settlement expansion and ultra-Orthodox housing subsidies.