Israel's Housing Prices Decline Amidst Notable Rise in Tel Aviv
Translated & summarized from Maariv by baba
Housing prices in Israel have fallen for the longest period in a decade, with a 5.7% drop in the third quarter of 2026. However, Tel Aviv has bucked the trend, experiencing a significant 12.1% annual price increase. While most regions saw price declines, Haifa recorded a slight annual rise. Despite recent decreases, new apartment prices remain 25% higher than in September 2021.
The story in 5 lines · by baba
- Israel's average housing prices fell 5.7% in Q3 2026, marking a decade-long decline.
- Tel Aviv saw a significant 12.1% annual rise in apartment prices.
- The Northern district is the cheapest region, while Tel Aviv is the most expensive.
- Haifa was the only district to record an annual price increase of 0.3%.
- New apartment prices are up 25% since September 2021.
Housing prices across Israel have continued their downward trend, marking the longest period of decline in a decade. The average price of an apartment dropped by 5.7% in the third quarter of 2026, reaching 2.287 million shekels, compared to 2.424 million shekels in the second quarter. Year-over-year, prices have fallen by 1.5% from 2.320 million shekels in the third quarter of 2025.
Despite the national decline, Tel Aviv stands out with a significant 12.1% annual increase in average apartment prices, reaching 4.606 million shekels. This contrasts with other major cities like Bat Yam and Herzliya, which saw price decreases. Other cities experiencing notable price increases include Netanya (8%), Holon (7.3%), and Hadera (6.2%).
Regional data reveals mixed trends. Tel Aviv remains the most expensive district with an average price of 3.46 million shekels, while the Northern district is the cheapest at approximately 1.499 million shekels. Annually, Tel Aviv, Haifa, and the Southern district saw price increases of 5.3%, 3.3%, and 2.9% respectively. Conversely, the Northern district experienced a 2.9% decrease, Jerusalem a 2.3% drop, and the Central district a 1.8% decline.
In August-September, the Haifa district was the only region to record an annual price increase of 0.3%. During these months, apartment prices in the Haifa district rose by 0.8% and in the Northern district by 0.4%. However, the Tel Aviv district saw the steepest monthly decline of 0.8%.
New apartment prices have seen a 0.7% decrease in August-September compared to July-August, and a 0.2% annual decrease. Despite these recent drops, new apartment prices have risen by 25% since September 2021, closely mirroring the overall housing price index increase of 25.9% during the same period.
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