From AP, 6/9/09, by BEN HUBBARD (AP):
JERUSALEM — Yousef Majlaton moved into the Jerusalem neighborhood of Pisgat Zeev for such comforts as proper running water and regular garbage pickup. ...Majlaton, his wife and three kids are among thousands who have crossed the housing lines to Pisgat Zeev and neighborhoods like it ...
...This is much more than a simple matter of real estate. Demographics could figure heavily in how Jerusalem is partitioned in a future peace deal. If that happens, it is expected the city will be split along ethnic lines — Jewish neighborhoods to Israel, Arab neighborhoods to Palestine.
Palestinians see east Jerusalem as their future capital. Prime Minister Benjamin Netanyahu vows the whole city will remain united as Israel's capital.
...In 2007, the latest year with available statistics, about 1,300 of Pisgat Zeev's 42,000 residents were Arabs. In nearby French Hill, population 7,000, nearly one-sixth are Arabs, among them students at the neighboring Hebrew University of Jerusalem. Neve Yaakov, with 20,000 people, had 600 Arabs, according to the Israel Center for Jerusalem Studies, a respected think tank.
Weeks after the 1967 war, Israel annexed east Jerusalem with its major Jewish, Muslim and Christian holy sites ...
...Netanyahu says Arabs have the right to live anywhere in the city, and so should Jews, though the Old City's Jewish Quarter is closed to Arabs.
Jerusalem's mayor and city councilors are all Jewish. Almost all the city's Arabs refuse to vote or run in municipal elections, saying that would be recognition of Israeli rule. But it deprives them of clout in competition for city spending.
Today, while west Jerusalem is overwhelmingly Jewish, the eastern half is an ethnic checkerboard. More than 180,000 Jews live there, most in places like Pisgat Zeev but also in enclaves in Arab areas. Nearly all the city's 220,000 Palestinians live in eastern neighborhoods.
Ironically, much of the Arab migration was set off by the separation barrier which Israel started building through the West Bank in 2002 during a wave of suicide bombings. Its Jerusalem segment meanders to scoop up as many Jewish areas as possible and make several Arab neighborhoods a part of the West Bank.
The wall stranded tens of thousands of Jerusalem Arabs on the "West Bank side," and many moved to Arab neighborhoods on the Jerusalem side for easier access to jobs and schools. But a housing shortage in those districts is pushing the overflow into Jewish areas, residents and real estate agents said...