Israeli Housing Market Rebounds With Over 24,000 Apartments Sold in Summer
Recent CBS data reveals a recovery in the Israeli housing market, with 24,000 apartments sold between June and August—an 11.1% quarterly increase. Experts dismiss unsold inventory fears as an urban legend, noting few completed units remain.
Housing Market Recovery: Over 24,000 Apartments Sold Between June and August
Recent data from the Central Bureau of Statistics (CBS) indicates a notable recovery in the Israeli housing market, contrary to recent warnings from the Ministry of Finance regarding a potential market collapse and a surge in contract cancellations. According to the figures covering the June-August period, approximately 24,000 apartments were sold, representing an 11.1% increase compared to the previous three months and an 8.1% rise year-on-year.
New apartments accounted for 41.8% of total sales, totaling roughly 10,110 units—of which 35.8% were sold under government-subsidized programs. Sales of new apartments surged by 11.6% compared to the preceding quarter and by 24.9% compared to the same period last year, demonstrating a strong return of contractors and developers to the market.
Unsold Inventory and the 'Urban Legend'
Despite concerns raised by the Ministry of Finance over unsold housing inventory, industry experts emphasize that the vast majority of these unsold units are still under construction and far from ready for occupancy. Last week, the Chair of the Appraisers Association, Nechama Bogin, dismissed the panic as an "urban legend," pointing out that CBS figures show only about 16,000 completed apartments remain unsold.
A study conducted by economist Idan Peleg and real estate appraiser Roi Fishman further analyzes this trend. According to their findings from April 2026, completed yet unsold apartments stood at about 11.2%, or roughly 9,400 units, compared to 17% (about 12,000 units) in November 2024. They stress that absolute numbers matter more than percentages and recommend comparing household formation data with housing completions to accurately gauge future supply and demand.
Regional Distribution and Inventory Leaders
By the end of August, total unsold inventory tracked by the CBS stood at approximately 85,680 units, translating to 26.7 months of inventory based on current sales paces. Among major cities with populations exceeding 100,000, Jerusalem leads with roughly 10,250 unsold units, followed by Tel Aviv-Yafo with approximately 9,820 units. In smaller municipalities, leaders include Lod (3,010), Kiryat Gat (2,930), Yehud-Monoson (1,670), and Be'er Ya'akov (1,510).
Meanwhile, second-hand apartments comprised 58.2% of total transactions, registering a 10.8% increase compared to the previous period, though down 1.4% year-on-year. Geographically, the Central and Southern districts led total sales during the June-August window, capturing 23.1% and 22.6% of the market respectively. The Southern district led in new apartment sales at 25.3%, while the Central district dominated second-hand transactions at 23.9%.
