"In fact, 90 percent of the Palestinian territory Israel claimed to have annexed to Jerusalem after 1967 is today off-limits to Palestinian development because the land is either already built on by exclusively Jewish settlements or being reserved for their future expansion. Denied permits, many Palestinians in Jerusalem build without them, but at considerable risk: Israel routinely demolishes Palestinian homes built without a permit. This includes over 300 homes in East Jerusalem demolished between 2004 and 2007 and 18,000 Palestinian homes in the occupied territories demolished since 1967."" (thanks Maryam)