Prior to the 19th century, the main built up areas outside the walls were the complex around King David's Tomb on the southern Mount Zion, and the village of Silwan.
In the mid-19th century, with an area of only one square kilometer, the Old City had become overcrowded and unsanitary, with rental prices on a constant rise.
[1][2] In 1855, Johann Ludwig Schneller, a Lutheran missionary who came to Jerusalem at the age of 34, bought a plot of land outside the Old City walls when the area was a complete wilderness.
[1] Mishkenot Sha’ananim (Hebrew: משכנות שאננים) was the first Jewish neighborhood built outside the walls of the Old City of Jerusalem, on a hill directly across from Mount Zion.
[4] It was built by Sir Moses Montefiore in 1860 as an almshouse, paid for by the estate of a wealthy Jew from New Orleans, Judah Touro.
[7] The name of the neighborhood was taken from the Book of Isaiah 32:18: "My people will abide in peaceful habitation, in secure dwellings and in quiet resting places.
[10] Beck bought the land and paid for the construction of the neighborhood, opposite the Damascus Gate of the Old City, under the auspices of Kollel Vohlin.