Israel's Housing Prices Rise Nationally, Dip Unexpectedly in Jerusalem
Translated & summarized from Behadrei Haredim by baba
Israel's national housing prices rose 0.2% in June-July 2026, with new homes up 0.5%, but prices declined 0.4% in Jerusalem and 0.3% in Haifa. Annually, prices are down 1.2% nationwide, though Jerusalem remains 1.1% higher year-over-year.
The story in 5 lines · by baba
- National housing prices rose 0.2% in June-July 2026, with new homes up 0.5%.
- Jerusalem saw a 0.4% price decrease, contrasting with national and other regional increases.
- Annually, housing prices are down 1.2% nationwide compared to 2025.
- Resale home prices dropped 1.2% nationally in Q2 2026, with Jerusalem down 2.9%.
- Despite recent dips, prices are significantly higher than five years ago.
National housing prices in Israel saw a 0.2% increase in transactions conducted between June and July 2026, compared to the May-June period, according to data from the Central Bureau of Statistics (CBS). New home prices rose at a higher rate of 0.5% during the same timeframe. Even when excluding homes sold under the government's "Price for the Resident" program, new home prices still increased by 0.4%, indicating the rise extended beyond subsidized sales.
Despite the recent uptick, the annual picture shows a decline. Compared to June-July 2025, overall housing prices are down 1.2%, and new home prices are down 0.8%. Significant regional disparities exist, with Tel Aviv experiencing a 0.7% rise, the Central District 0.3%, and the South 0.1%. Conversely, prices dropped in Jerusalem by 0.4%, Haifa by 0.3%, and the North by 0.1%.
Jerusalem presents a notable anomaly: despite the recent 0.4% decrease, prices in the district are still 1.1% higher than in the same period last year. The North also saw a 1% annual increase. Other districts experienced year-over-year declines, with the sharpest annual drop of 3.2% in the Central District, followed by Haifa (-2.4%), Tel Aviv (-0.9%), and the South (-0.6%).
The CBS also reported on the resale market, which saw a 1.2% decrease in the second quarter of 2026 compared to the first. Jerusalem again stood out, with a 2.9% drop in resale prices, the steepest among all districts. Tel Aviv saw a 2% decrease, and the Central District 1.1%. The South, however, saw a 0.3% rise, with Haifa and the North each up 0.1%.
The CBS announced that the resale housing price index will now be published quarterly to ensure sufficient transaction data and reduce index volatility. Looking at longer-term trends, housing prices nationwide are still 29.3% higher than in June-July 2021, with new homes up 25.2%. Construction input costs saw a slight decrease in July, down 0.1%, but remain 2.3% higher year-to-date and 3.5% higher over the past 12 months, primarily due to a 5.4% increase in labor costs.
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