Apartment Supply Dips in Central Israel, Prices Expected to Rise
Translated & summarized from Ice by baba
Israel's housing market shows a significant supply drop in central cities like Holon, with prices expected to rise due to low inventory and steady demand. Peripheral cities such as Migdal HaEmek are experiencing a surge in apartment supply. Earlier data from June also indicated rising demand and falling supply in cities like Modi'in and Beit Shemesh, impacting price expectations.
The story in 5 lines · by baba
- Holon saw the largest drop in apartment supply at 14.3%, signaling potential price increases.
- Migdal HaEmek recorded the biggest supply increase at 23.1%, potentially leading to price decreases.
- Central Israel is experiencing a contraction in apartment supply, while peripheral areas see growth.
- Sustained demand in areas with shrinking supply is a key factor driving up housing prices.
- Modi'in and Beit Shemesh showed high demand and low supply in earlier June data.
Data from the third quarter of 2026 reveals significant disparities in Israel's housing market, with a notable decrease in apartment supply in central regions and a surge in peripheral areas. According to Yad2 data, cities like Holon experienced the sharpest decline in available second-hand apartments, with a 14.3% drop. Pardes Hanna-Karkur, Yehud-Monosson, Ness Ziona, and Kfar Saba also saw substantial decreases in supply, ranging from 11.6% to 13.2%. This shrinking supply, coupled with sustained demand, is expected to drive up apartment prices in these areas.
In contrast, Migdal HaEmek led the list of cities with the largest increase in apartment supply, boasting a 23.1% rise. Karmiel, Tirat Carmel, Kiryat Ono, and Gan Yavne also recorded significant increases in housing availability, between 12.1% and 16.9%. While a higher supply generally suggests lower prices, the situation is nuanced. In Kiryat Ono and Tirat Carmel, demand also rose by 11.5% and 10.7% respectively, potentially balancing the increased supply. However, in cities like Be'er Sheva, Gan Yavne, and Acre, rising supply alongside falling demand is anticipated to lead to price reductions.
Earlier data from June of the same year, also from Yad2, highlighted Modi'in as having the highest demand increase (9.1%) while supply dropped by 9.3%. Beit Shemesh followed with a 9.5% decrease in supply and a 5.1% drop in demand. Pardes Hanna-Karkur, Kiryat Motzkin, and Kiryat Bialik were also noted for increased demand and decreased supply during that period.
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