Economy · Full coverage

Israeli Housing Construction Costs Keep Rising, Pressuring Builders and Buyers

How 3 Israeli newsrooms covered this story — translated into English and compared side by side.

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First reported by Globes · Jun 15, 2026

What happened

Israel’s residential construction input price index rose 0.6% in May 2026 and 3.5% over the past year. The increase is being driven by war-related labor shortages and higher material costs, even as the dollar weakens. Builders and some buyers are absorbing the added costs, while many projects remain under pressure.

01The construction input index rose 0.6% in May and 3.5% over 12 months.
02War-driven labor shortages and Turkey’s boycott pushed costs higher.
03Labor costs now make up nearly 43% of the index.
04Many developers absorb the rise through financing deals that waive index linkage.
05A million-shekel project has gained about 200,000 shekels since 2021.

Summary translated & synthesized from the sources below by baba. Read each original for the full report.

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