Holon Housing Market: What You Need to Earn for an Apartment

Purchasing a four-room apartment in Holon, a city experiencing varied market conditions, requires a significant income. Prices for such apartments range from approximately 2.2 million shekels in older buildings in Kiryat Sharet to over 3 million shekels in Kiryat Ayalon. The city's average price for a four-room apartment is around 2.37 million shekels, though a well-equipped unit with amenities like an elevator, parking, and a safe room typically costs between 2.4 and 2.8 million shekels.

Monthly mortgage payments for a 2.4-2.8 million shekel apartment, assuming a 30% down payment and a 25-year loan, fall between 8,100 and 9,500 shekels. This is considerably higher than the average city rent of about 5,200 shekels, with four-room apartments renting for 4,900 to 6,750 shekels. The mortgage payment can be 2,000-3,000 shekels more expensive than rent.

To afford these mortgage payments, a net monthly income of 20,000 to 34,000 shekels is necessary, depending on the percentage of income allocated to the mortgage. Banks generally cap mortgage payments at 40% of income, meaning a net income of 20,000-24,000 shekels is required for the lower end of apartment prices. For those aiming for higher-end properties in areas like Kiryat Ayalon, an income of 30,000 shekels or more is needed.

Beyond the monthly payment, a substantial down payment is also required. For a 2.4 million shekel apartment, 720,000 shekels are needed, and for a 2.8 million shekel apartment, 840,000 shekels. First-time buyers can finance up to 75%, reducing the required capital to 600,000-700,000 shekels, but this increases the monthly payments. These figures do not include additional costs like purchase tax, legal fees, and broker commissions.

The Holon housing market has seen a slight decrease in prices over the past year, averaging a 3.2% drop, with older neighborhoods experiencing more significant declines. For instance, prices in Neot Rachel and Jessy Cohen fell by approximately 7.4% and 7.7%, respectively. The gap between older and newer buildings is a notable factor, with a 600,000 shekel difference observed between a 1990s apartment and a newer, smaller unit nearby. This price difference translates to about 2,000 shekels more per month on a mortgage and an additional 180,000 shekels in down payment.