Israeli Housing Prices Rise Slightly in July-August, Annual Drop Continues

Housing prices in Israel saw a second consecutive month of increases, rising by 0.2% in July-August compared to the previous two-month period, according to data released by the Central Bureau of Statistics. The Tel Aviv district led the price surge with a 0.7% increase, followed by the Central district with a 0.3% rise, marking a shift from previous trends. However, prices continued to decline in the Haifa, Jerusalem, and Northern districts, with drops ranging from 0.1% to 0.3%.

Despite the recent monthly uptick, the annual picture shows a 1.2% decrease in housing prices compared to July of the previous year. The second-hand market is experiencing a more pronounced downturn, with prices falling by 1.2% in the second quarter of 2026 compared to the first quarter.

Rental prices, however, showed different trends depending on tenant status. Rent for those renewing contracts increased by 2.6%, while prices for new tenants saw a more significant rise of 4.4% in sampled apartments with tenant turnover.

The index of input prices for residential construction decreased by 0.1% in July 2026, reaching 103.5 points. Year-to-date, this index has risen by 2.3%. The Consumer Price Index (CPI) for August rose by 0.7%, keeping the annual inflation rate steady at 1.5%. Notable price increases were observed in fresh vegetables (2.9%), transportation (2.7%), culture and entertainment (2.0%), and housing (0.6%). Conversely, fresh fruit prices dropped by 2.0%, clothing by 0.8%, food by 0.5%, and furniture and household equipment by 0.3%.