Rents Across Israel are Rising Again

As would be expected, the price of rentals in Israel remained stagnant. But, as of March 20 2024 the rents increased greatly pushing up the housing service index by 5.5 %.Globes reports: “The Central Bureau of Statistics’ data show that the nationwide average rent for a four-room apartment reached NIS 5,200 monthly in the third quarter. In Tel Aviv, the average monthly rent for such an apartment was NIS 8,500. It was NIS 5,900 in Jerusalem, NIS 3,800 in Haifa, and NIS 3,000 in Beersheva. Rents in the center of the country are almost equivalent to the monthly repayment of a mortgage on the same kind of apartment.

“Rents make up 25% of the Consumer Price Index and an increase in rents causes the a move to the rate of inflation.

‘The figures are for the change in rent when there is a change in tenant. New tenants are the most vulnerable market, since landlords tend to raise rents by more in their case than when extending the lease for an existing tenant. The Central Bureau of Statistics began to publish separate data for new tenants in July 2022. Until the beginning of the war, they showed that the rent for a new tenant tended to be 6-9% higher than for the previous tenant of an apartment. In November 2023, however, the gap narrowed to less than 5%, and by April this year it had shrunk to 2%.”

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Read the full article https://en.globes.co.il/en/article-rents-resume-steep-rise-1001497516