The fate of the city, which is home to holy sites sacred to Jews, Muslims and Christians, is at the heart of the decades-old conflict. The Palestinians want east Jerusalem to be the capital of their future state, while Israel views the entire city as its unified capital. Tensions have soared since Trump, a close ally of Israel Prime Minister Benjamin Netanyahu, recognised Jerusalem as Israel's capital in 2017 and moved the US Embassy there.
That move broke with a longstanding international consensus that the city's fate should be decided in negotiations.
Trump has argued that his recognition does not preclude a final settlement.
But the Palestinians and rights groups say his unbridled support for Israel's nationalist Government has given it a free pass to tighten its grip on war-won lands sought by the Palestinians.
Peace Now found that in the first two years of Trump's presidency, authorities approved 1861 housing units in east Jerusalem settlements, a 60 per cent increase from the 1162 approved in the previous two years. The figures show that 1081 permits for settler housing were issued in 2017 alone, the highest annual number since 2000.
A total of 1233 housing units were approved for Palestinians in 2017 and 2018, according to Peace Now.
The data did not include the number of Jewish and Palestinian applications, or the rates of approval, though many Palestinians acknowledge not applying because they say it is nearly impossible to get a permit.
The figures are for construction permits issued by the municipality, the final step of a costly bureaucratic process that can take years to complete. The figures show that since 1991, the municipality has issued 21,834 permits for housing units in Jewish settlements in east Jerusalem and just 9536 for Palestinian neighbourhoods.
Hagit Ofran, an expert on settlements who collected and analysed the data, says the discrepancy in permits dates to 1967, when Israel expanded the city's municipal boundaries to take in large areas of open land that were then earmarked for Jewish settlements.
At the same time, city planners set the boundaries of Palestinian neighbourhoods, preventing them from expanding.
"In the planning vision of Jerusalem, there was no planning for the expansion of Palestinian neighbourhoods," she said.
- AP