The house was built between 1936 and 1938 for Greek-Jewish merchant Edward Aghion, an affluent resident of Alexandria in Egypt.
During the 1990s, a wall was erected around the house for security reasons and a segment of Balfour Street was closed to traffic.
Prime Minister Benjamin Netanyahu resided in Beit Aghion until July 2021, more than a month after he was ousted from office by a coalition headed by Naftali Bennett and Yair Lapid.
The front of the building also includes a section molded in a circular way, and in a boat-like fashion typical of the International Style.
In 2019, the Prime Minister's Office began developing an alternative plan, in another location on the Government Campus in Jerusalem − the "Shira" project.
Additionally, it was recommended that until a new building is constructed, the Prime Minister's Office should rectify and repair safety and protection deficiencies in the Beit Aghion.