Israeli Housing Market Shows Mixed Trends Amidst Overall Price Decline

Israel's housing market is exhibiting varied regional performance despite a general annual price decrease. According to the Central Bureau of Statistics, apartment prices rose by 0.2% in June-July 2026 compared to the preceding two-month period. However, on a year-over-year basis, housing prices nationwide have fallen by 1.2%. The most significant annual price drops were observed in the Central District (-3.2%), Haifa (-2.4%), Tel Aviv (-0.9%), and the South (-0.6%). Conversely, Jerusalem saw a 1.1% annual price increase, and the Northern District experienced a 1% rise.

Regional trends also differed in the most recent two-month comparison. Tel Aviv apartments became 0.7% more expensive, the Central District saw a 0.3% increase, and the South experienced a 0.1% rise. In contrast, Jerusalem prices decreased by 0.4%, Haifa by 0.3%, and the North by 0.1% during the same period.

The new housing segment shows a 0.5% price increase in June-July compared to May-June, though prices are still 0.8% lower year-over-year. This annual decline has slowed considerably from a 4.2% drop in March-April. The share of new apartment purchases under government support programs has surged to 41.2%, up from 37.8% two months prior and 28.3% a year ago. Excluding subsidized deals, new apartment prices rose 0.4% in the latest period.

Despite recent corrections, housing prices remain substantially higher than five years ago, with overall apartment prices up 29.3% and new apartment prices up 25.2% since June-July 2021. The resale market continues to decline, with prices falling 1.2% in the second quarter of 2026 compared to the first. Jerusalem experienced the sharpest resale price drop (-2.9%), followed by Tel Aviv (-2%) and the Central District (-1.1%). Some regions saw modest increases in resale prices: the South (+0.3%), North (+0.1%), and Haifa (+0.1%). The Central Bureau of Statistics will now publish resale housing data quarterly to better account for transactions and reduce volatility.