Israel: price of apartment rental increased 60% in the past decade
Starting in 2004, the average monthly price of apartment rental went from 2,295 shekels to 2,680 shekels. In the city of Tel Aviv alone, the average rental prices of apartments increased 72% over the course of 6 years.
According to Housing Ministry figures, the cost of renting an apartment has greatly increased over the last few years, and more and more couples admit they’re not able to keep up with housing costs. The Housing Ministry report shows that the price of renting an apartment has increased around 58% between 2008 and 2014, which is significantly higher than the consumer price index. Tel Aviv shows the most dramatic price increase, with a 72% jump over the past six years.
According to the report, the average rental price for Tel Aviv apartments in 2004 was NIS 2,749 per month, jumped to NIS 3,277 in 2008, and is currently at NIS 5,643.
The following data refers to the average rental price for apartments of all sizes:
In Tel Aviv, the rental price for a small apartment (1.5-2 rooms) is NIS 3,984 per month. Average rent for a bigger apartment (2.5-3 rooms) is NIS 4,954. Those renting a 4.5-5 room apartment pay no less than NIS 8,200 on average.
In Jerusalem, the price of renting an apartment hasn’t increased as dramatically, with a 48% jump over the past six years. In 2008, the average price of an apartment in Jerusalem was at NIS 2,688. These days, the price is around NIS 4,000 per month.
The average rental price for a 1.5-2 room apartment in Jerusalem is NIS 2,884 per month. Rent for apartments with 3.5-4 rooms is NIS 4,510 – almost the same price as a 2-room apartment in Tel Aviv.
According to figures from Central Bureau of Statistics released in 2013, which rely on the 2012 household expenses survey data, there has been a decline in the proportion of ownership of apartments by young married couples ages 30-39 over the last 16 years.
Between 1997 and 2002 the percentage of 30-39 year olds who owned apartments decreased from 68.7% to 56.7%. As a result, there’s been a rise in rental rates for that age group, from 25.2% to 37.2%. The Central Bureau of Statistics reported that this trend was commonplace mostly among married couples.
The drop in share of apartment ownership among young couples contributed to the general trend of lowered real estate ownership in the population. The Central Bureau of Statistics found that from 1997 to 2012 there was a drop from 70.2% to 67.9% in the rate of ownership of at least one apartment in the overall household.