Tel Aviv Leads Israel in Average Monthly Mortgage Payments

The average monthly mortgage payment for a new loan on a typical four-room apartment in Israel's 12 largest cities stands at NIS 10,864. This figure represents a slight quarterly increase of NIS 9 but a notable annual decrease of approximately 5%, or NIS 552. The data, compiled by the Alrov Institute, analyzes loans for 70% financing over 25 years.

While the national average saw a marginal decrease, five of the twelve cities examined experienced a drop in monthly payments compared to the previous quarter. This trend is attributed not necessarily to falling housing prices, but potentially to a shift in the types of properties being purchased. However, year-over-year, all surveyed cities showed a decrease in mortgage payments compared to the same period last year.

Significant variations exist across cities. Beersheba has the lowest average monthly payment at NIS 5,106, followed by Haifa at NIS 6,519, and Ashdod at NIS 8,542. Other cities with substantial payments include Hadera (NIS 8,827), Bat Yam (NIS 9,138), Petah Tikva (NIS 9,298), Rishon LeZion (NIS 9,759), Rehovot (NIS 9,830), and Bnei Brak (NIS 10,092).

In the most expensive cities, Ramat Gan residents face average payments of NIS 11,638, Jerusalem residents NIS 12,185, and Tel Aviv residents the highest at approximately NIS 16,850 per month. Over the past year, Ramat Gan saw a 12.2% decrease in payments, Bnei Brak 9.1%, Bat Yam 7.9%, and Tel Aviv 7.4%. Jerusalem experienced a minimal decrease of only 0.2%.

The Alrov Institute's analysis, which forms the basis of the 'Israel Housing Affordability Index,' utilizes data from the Israel Tax Authority on real estate transactions, Central Bureau of Statistics data on household income, and Bank of Israel data on mortgage interest rates to assess the ability of households to purchase a four-room apartment.