Israel's Unsold Housing Stock Questioned Amid Rising Numbers

Israel currently reports approximately 85,000 unsold apartments, but this figure may be misleading. The definition used by the Central Bureau of Statistics (CBS) includes apartments that have received building permits but have not yet begun construction, potentially for several years. An estimated 17% to 19% of these apartments are actually ready for occupancy, translating to around 15,000 completed but unsold units, with a few thousand in Tel Aviv. Apartments that remain unsold for 15 months are removed from the statistic, even though they are still on the market. This creates a discrepancy where unbuilt apartments are counted, but completed ones unsold for over 15 months are not. The actual number of completed, unsold apartments is estimated to be around 17,000, including those in southern Tel Aviv. Developers sometimes delay construction after obtaining permits to align with marketing strategies for other projects or to avoid increasing their unsold inventory. While criticism exists regarding how the unsold housing stock is calculated, the article notes that in the US, apartments are removed from such statistics after only one year. Similarly, financing benefits are not included in housing price calculations globally. Canceled deals are reportedly added back to the inventory, countering claims that the unsold number is higher due to cancellations. The number of unsold apartments remained relatively stable until 2022. However, 2023 saw a significant increase of over 25% in unsold units, coinciding with a slump in sales. Further increases of over 14% were recorded in 2024 and are projected for 2025, partly due to developer sales driven by financing incentives. The article suggests that the unsold housing stock might stabilize in 2026, though previous estimates predicted it could exceed 90,000 units with new permits in the Sde Dov area, despite long construction timelines.