Study Finds Construction Defects in Nearly All New Israeli Apartments with Rising Repair Costs

A recent analysis by Lad Engineering, a company specializing in home inspections and engineering supervision, reveals that every new apartment inspected in Israel between 2024 and 2026 had at least one construction defect. The study reviewed 2,860 home inspection reports and found that 98% of apartments had plaster and paint defects, 97% had flooring and aluminum issues, and 94% had plumbing problems. More complex defects such as moisture and sealing issues appeared in 77% of cases, while electrical defects were absent and safety or gas defects were rare, appearing in only 3% of reports.

The median cost to repair these defects has been increasing sharply, from 29,615 shekels in 2024 to 41,913 shekels in 2026, marking a rise of over 40% in three years. The total estimated cost of repairing construction defects in new apartments nationwide is between 1.8 and 2.2 billion shekels annually. Alex Dana, CEO of Lad Engineering, emphasized that many defects remain even after contractors declare work complete, citing cases where 4.4 million shekels worth of defects were only fixed after a second inspection.

The rise in repair costs is attributed mainly to increased prices for construction materials and a shortage of skilled labor, especially following the COVID-19 pandemic and the onset of Operation Iron Swords. Haim Feiglin, Vice President of the Builders Association of Israel, noted that labor costs have risen significantly due to the specialized skills required for defect repairs and the challenging working conditions, making it difficult to recruit qualified workers.

While some common defects from previous years, such as incorrect bathtub plumbing, have become rare, issues with flooring remain prevalent, with inspectors typically finding at least ten damaged tiles per apartment, and in some cases up to 50-60 tiles. The findings highlight ongoing challenges in quality control within Israel's new housing market and the financial burden on buyers for post-delivery repairs.