Harish Housing: Affordability Analysis for Families in Central Israel

A family aiming to purchase a four-room apartment in Harish, a city in central Israel, should budget between 1.3 and 1.5 million shekels. Recent summer transactions show a 94-square-meter apartment in the Avnei Hen neighborhood sold for 1.3 million shekels, a 130-square-meter unit in Betzavta for 1.37 million, and a 101-square-meter apartment in Ha'פרחים neighborhood for 1.49 million. The average price for an apartment in Harish, including larger units, is approximately 1.54 million shekels.

The crucial factor for affordability is the monthly mortgage payment. A mortgage for a 1.3-1.5 million shekel apartment, with a 30% down payment, 70% financing, and a 25-year term, currently requires a monthly repayment of around 4,400 to 5,100 shekels. This is comparable to rental prices in the city, where a five-room apartment rents for about 4,200 shekels. Harish is noted as one of the few cities in central Israel where mortgage payments and rental costs are still closely aligned.

To manage a monthly mortgage payment of 4,400-5,100 shekels, a household needs a net income of roughly 11,000-13,000 shekels if the mortgage constitutes 40% of their income. If the mortgage is 35% of income, the required net income rises to approximately 13,000-14,500 shekels, and for a 30% ratio, it's around 15,000-17,000 shekels.

Practically, a couple earning a combined net income of 15,000 shekels, which is below the national average for two incomes, would be in a comfortable range. Even a single income of 12,000-13,000 shekels net can suffice for an apartment at the lower end of the price range, a situation rare in other central Israeli cities. The required down payment is also relatively low. For a 1.35 million shekel apartment, 30% is about 405,000 shekels, and for a 1.5 million shekel apartment, it's 450,000 shekels. With 75% financing, the down payment can decrease to 340,000-375,000 shekels, still a significant sum but considerably less than the down payment needed for a similar apartment in Tel Aviv.

Harish's property prices are currently stable, with some areas seeing a slight decrease in price per square meter. However, over the longer term, prices have risen significantly since early 2021. The current price stability is attributed to rapid development based on government housing programs, a large supply of apartments, and lagging employment and commercial infrastructure. Many residents commute out of the city for work, making the value of properties dependent on future transportation infrastructure. Banks are scrutinizing valuations, and securing 75% financing may be challenging without a recent appraisal. Compared to nearby cities like Pardes Hanna-Karkur (1.9-2.3 million shekels for a four-room apartment) and Hadera (2.1-2.4 million shekels), Harish offers a substantial cost saving.

Despite challenges, Harish remains one of the few locations in central Israel where a household with a net income of 12,000-15,000 shekels and a down payment of around 400,000 shekels can purchase a relatively new four-room apartment without facing severe financial strain. The trade-offs include longer commutes, an evolving job market within the city, and slower property value appreciation compared to the Gush Dan region. For those prioritizing living over investment, Harish currently presents a favorable option in central Israel.