Rental Prices Surge in One Israeli City, Stabilize Nationally
Translated & summarized from Maariv by baba
Rental prices in Israel saw a national monthly decrease of 0.1% in October, but are up 3.4% year-over-year. One city experienced a dramatic rent increase exceeding 9%. The supply of rental apartments recovered by 6% nationally in October, though year-over-year growth remains modest. Experts suggest the current supply is still too low to significantly lower prices.
The story in 6 lines · by baba
- One Israeli city saw rental prices jump by over 9% in October.
- Nationally, average rents decreased by 0.1% in October but are up 3.4% year-over-year.
- The supply of rental apartments nationwide increased by 6% in October.
- Rishon LeZion reported a 29.5% surge in rental apartment supply.
- Herzliya saw a 19.5% decrease in rental apartment supply in October.
- Experts state current rental supply is insufficient to lower prices.
A report on rental prices for October reveals significant disparities across Israeli cities, with one city experiencing a sharp increase of over 9% while others saw prices decline. Nationally, the average rent in October decreased by 0.1% compared to September, indicating a slowdown in the rate of price increases. However, year-over-year, rents are up 3.4% from October of the previous year, continuing an upward trend. Rents for smaller apartments (1-3 rooms) rose 3.1% annually, and for larger apartments (4-5 rooms) by 3.7%.
The supply of rental apartments showed a recovery in October, increasing by 6% nationwide from September to 12,603 units. The supply of smaller apartments grew by 5.1%, and larger ones by 7.6%. This monthly increase is partly attributed to the post-holiday period. Compared to October of the previous year, the supply is up 8.8%, though this is influenced by the timing of the High Holidays. When compared to November of the previous year, the first post-holiday month, the supply increase is only 1.2% nationally, 1.5% for small apartments, and 0.6% for large ones.
Significant regional variations were observed in supply. Rishon LeZion saw a 29.5% increase in available rentals, followed by Holon (15.6%), Jerusalem (14.3%), and Netanya (8.2%). Conversely, Herzliya experienced a 19.5% drop in supply, Bat Yam 13.4%, Ramat Gan 7.7%, and Tel Aviv-Yafo 7.3%.
Experts caution that the October supply recovery may not signal a lasting market change. Despite the monthly rebound, the overall number of rental units available has not significantly increased compared to the same period last year. The current supply is deemed insufficient to exert substantial downward pressure on rental prices across Israel.
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