Where to Find Apartments Under 2 Million Shekels in Israel
Translated & summarized from Ice by baba
Housing prices in Israel have risen, making apartments under 2 million shekels scarce in many cities, with the national average now around 2.4 million shekels. A review of apartments priced between 1.5 and 2 million shekels revealed surprising locations like Ariel and Lod, while Tel Aviv requires 350 salaries for an average apartment. The most affordable options are found in peripheral cities like Netivot and Tzfat, with prices increasing towards central areas. Factors like older housing stock and lack of protected rooms influence average prices in cities like Haifa and Eilat.
The story in 6 lines · by baba
- Housing prices in Israel have surged, pushing apartments under 2 million shekels out of reach in many cities.
- The national average price for an apartment in Israel has reached approximately 2.4 million shekels.
- Cities like Netivot, Tzfat, and Kiryat Ata offer apartments in the 1.5 to 2 million shekel range.
- Tel Aviv requires an average of 350 salaries to purchase a typical apartment.
- Older neighborhoods and apartments lacking protected rooms significantly lower average prices in some cities.
- Peripheral areas are the main focus for affordable housing, with prices rising closer to major cities.
Housing prices in Israel surged significantly in 2021 and 2022, pushing apartments priced at up to 2 million shekels out of reach in many cities. In some areas, the average price for an apartment has climbed to around the national average of 2.4 million shekels. A typical four-room apartment is now below this threshold in certain cities, attracting the focus of most homebuyers. The immense demand seen in programs like "Apartment at a Discount" highlights the strong interest in new apartments priced between 2.2 and 2.5 million shekels.
A review of data from Yad2 reveals locations where apartments can still be found for 1.5 to 2 million shekels. Some findings were unexpected, such as Ariel, where apartment prices were anticipated to be lower. Conversely, in cities like Lod, prices were expected to be higher than the observed average of 1.75 million shekels. In Tel Aviv, purchasing an average apartment requires approximately 350 salaries. The analyzed average includes both new and second-hand four-room apartments, encompassing older neighborhoods that lower the overall average.
Cities like Kiryat Bialik and Kiryat Motzkin have apartment prices exceeding 1.7 million shekels, though cheaper second-hand units can bring down the average, a phenomenon also observed in Kiryat Gat. The primary focus for more affordable housing is in the periphery, with prices increasing as one moves towards larger or more central cities. Or Akiva, Ashdod, and Hadera are more sought-after than southern cities due to their locations. In Ashdod, while new apartments are considerably more expensive, the average price is influenced by older neighborhoods. Eilat also shows an average price of 1.56 million shekels, partly due to the sale of many older apartments.
In Haifa, approximately 70% of apartments lack a protected room (mamad), which significantly impacts the second-hand market and lowers the average price, but does not reflect the cost of new apartments. Hadera may have previously exceeded the 2 million shekel threshold, but prices have slightly decreased, bringing cities like Ramla back below this mark. The most affordable cities within the 1.5 to 2 million shekel range include Netivot, Tzfat, and Kiryat Ata, where average prices are very low. Kiryat Yam also offers affordable apartments, with its average price benefiting from a high number of older units and substantial urban renewal projects.
An important factor is the percentage of apartments without a protected room, which is crucial in cities like Haifa but less relevant in newer cities like Modi'in. In Modi'in, the average price for a four-room apartment is a surprisingly high 3.23 million shekels, partly due to the city's relatively recent establishment starting in 1996.
