Two facts about Israel's housing market worth knowing

Two facts explain why an apartment feels further out of reach, even though everyday life has become cheaper. The figures come from our full analysis of Israel's two-speed economy (1995 to 2025).

Fact 1: the effort to buy an apartment has almost tripled

The number of average monthly salaries needed to buy an apartment:

1995: 75 salaries, about 6.2 years of gross work.

2010: 125 salaries, about 10.4 years of work.

2025: 188 salaries, about 15.6 years of work.

Over this period the average wage rose 3.3 times and housing prices rose 8.3 times. That is why the apartment moves away faster than wages rise.

Fact 2: everyday life has actually become cheaper

The buying power for simple consumer goods improved. On the Big Mac index, the working time needed for one meal fell:

1995: 39 minutes of work.

2010: 28 minutes.

2025: only 20 minutes.

What this means for someone looking for a property

The monthly mortgage payment for an average apartment in central Israel is about 87% of the average wage, according to the assumptions of our analysis.

So it is worth checking repayment capacity before you start looking, and not only the purchase price.

What was actually paid in transactions can be checked on the Tax Authority's real estate information site (nadlan.gov.il).

For the full analysis, see the article "The housing paradox in Israel" on the articles page. For property details and to arrange a meeting: Hagai Oren, +972-54-445-2120.