Palestinians and rights groups say the newly authorized homes meet only a small fraction of the need in the 60% of the West Bank that is under full Israeli control.
Israeli media reported that four fires caused by incendiary balloons broke out in areas close to the Gaza Strip.
The military said that soldiers fired at a car that failed to stop at a checkpoint after they fired warning shots.
In a statement, the Israeli military said Omar began ''advancing rapidly'' towards Israeli troops carrying an iron bar. They said the man continued to advance despite warning fire and was then shot.
The Gaza Health Ministry said 12 women and eight children were among those killed, with another 50 people wounded in the attack.