Israel's Housing Market Slows, With 85,000 New Apartments Unsold
Translated & summarized from Mignews by baba
Israel's housing market has slowed significantly, with 85,080 new apartments currently unsold, according to the Central Bureau of Statistics. This inventory represents a 25.8-month supply at current demand rates. The Tel Aviv and Central districts hold the largest share of unsold new homes. While overall sales decreased in the third quarter, there was a shift in buyer activity towards peripheral areas, with Kiryat Gat leading new home sales.
The story in 6 lines · by baba
- 85,080 new apartments are unsold in Israel, indicating a significant market slowdown.
- It would take 25.8 months to sell the current inventory of new homes at existing demand levels.
- The Tel Aviv district has the largest concentration of unsold new apartments, with 26,500 units.
- Third-quarter sales of new apartments decreased by 5.7% compared to the previous quarter.
- Buyer activity is shifting towards peripheral areas, with the Southern district leading in overall transactions.
- Kiryat Gat emerged as the top city for new home sales, with most purchases utilizing state subsidies.
Israel's real estate market is experiencing a significant slowdown, with the number of unsold new apartments nationwide reaching approximately 85,080. At current demand levels, it would take developers 25.8 months to sell this inventory, though many units are not yet ready for occupancy. This data comes from the Central Bureau of Statistics (CBS) analysis of the third quarter of 2026.
The majority of unsold new homes are concentrated in the most expensive regions. The Tel Aviv district accounts for 31.2% of all vacant new constructions, totaling around 26,500 units. The Central district follows with 24.8%, or 21,070 units.
Despite the slowdown, sales in the third quarter saw buyers acquire about 21,750 apartments, a 5.7% decrease from the previous quarter. Year-over-year, total sales dropped by 7.3%, but after seasonal adjustments, a 2.6% increase was recorded. Since January 2026, the market had shown an average monthly growth of 1.1%.
New construction sales represented 42.3% of all transactions (approximately 9,190 apartments), with 35.7% of these purchases supported by government subsidy programs. Developer sales fell 7.2% compared to the previous quarter but rose 4% year-over-year. The secondary market accounted for 57.7% of total deals, or 12,560 apartments, but saw a 4.5% decline in the quarter and has been steadily decreasing by about 0.5% monthly since April 2026.
Geographically, buyer activity has shifted towards the periphery. The Southern district led in overall transactions with 23%, followed by the Central district at 22.1%. In new construction, the Southern district was also the leader with 26.2%. Kiryat Gat was the top city for new home sales, with 1,030 units sold, 78.3% of which were subsidized. Jerusalem and Tel Aviv-Yafo have the largest inventories of unsold new apartments in major cities, while Kiryat Gat and Lod lead among smaller cities.
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