Housing Unaffordable: Buying Average Apartment in Israel Requires 164 Salaries
Data from the Central Bureau of Statistics shows purchasing an average apartment in Israel requires up to 164 salaries, with Tel Aviv exceeding 300 salaries.
The dream of buying an apartment in Israel is becoming increasingly distant. According to data from the Central Bureau of Statistics, it currently takes between 160 and 164 salaries to purchase an average apartment priced at around 2.3 million NIS, assuming an average monthly salary of 14,000 NIS.
Regional Disparities in Housing Costs
A mathematical breakdown reveals that purchasing an apartment in Tel Aviv requires double the savings. An average apartment in Tel Aviv requires over 300 salaries, reaching up to 350 salaries in certain neighborhoods. Meanwhile, buying an average apartment in Haifa requires about 135 salaries, while in Beersheba buyers must raise 96 salaries.
The core issue is that the majority of the public struggles to accumulate savings due to shrinking disposable incomes. Even if an individual manages to save 10 percent of their monthly salary, they would need 1,600 salaries—equivalent to 133 years—far exceeding average human life expectancy. High property prices mean that purchasing a home relies heavily on substantial equity accumulated beforehand, inheritances, or family assistance.
Mortgages and Interest Rate Trends
According to Alrov Institute data, high-tech employees earning an average monthly salary of 31,000 NIS require only about 71 salaries for an average apartment. However, this calculation is based on gross figures, and it remains doubtful whether the average high-tech worker reaches this net amount.
The average mortgage repayment in Israel decreased in the second quarter of the year from 11,416 NIS to 10,864 NIS, marking an annual decline of 4.8%.
This decrease does not necessarily indicate a drop in housing prices. In some cases, it reflects the purchase of cheaper apartments or housing downsizing. Real estate investors also influence the market, with recent data showing that the average mortgage repayment for investors actually rose by 17%.
Ramat Gan stands out as the only city where a double-digit percentage drop of 12.2% was recorded in the average monthly mortgage repayment. In Bnei Brak, the decrease stands at 9.1%, in Bat Yam at 7.9%, and in Tel Aviv at 7.4%, despite absolute mortgage amounts remaining higher than in other cities.