Average Rent in Israel Crosses 5,000 NIS as Outer-Circle Cities Surge

The average monthly rent in Israel crossed the 5,000 NIS threshold in the first half of 2026, reaching 5,069 NIS. This represents a 3.1% increase compared to the same period last year (4,915 NIS), with the second quarter showing a further rise to 5,086 NIS. However, the most dramatic trend is not the national average, but the geographical shift: the sharpest price hikes have migrated from central Tel Aviv to second- and third-tier cities.

According to data from the Central Bureau of Statistics (CBS) for the 18 largest cities in Israel (with populations over 100,000), the average monthly rent stood at 5,052 NIS in the first quarter of 2026, rising by 0.7% to 5,086 NIS in the second quarter.

Tel Aviv Leads, But Outer Circles Surge

Significant gaps remain between cities. Tel Aviv continues to lead with an average monthly rent of 7,398 NIS in the first half of the year, a 2.8% increase compared to the same period last year. Herzliya follows with an average rent of 6,732 NIS (up 4.8%), and Kfar Saba ranks third at 6,118 NIS (up 5%). Ramat Gan is fourth with an average rent of 5,870 NIS (up 3.1%).

In Jerusalem, the average rent reached 5,331 NIS (up 3.2%), while Rishon LeZion recorded 5,243 NIS (up 4.2%) and Petah Tikva reached 5,117 NIS (up 4.2%). The sharpest increase was recorded in Beit Shemesh, where average rent jumped 9.9% from 4,452 NIS in the first half of 2025 to 4,893 NIS in the first half of 2026.

Breakdown by Apartment Size

On a national level, the average monthly rent for 1-2 room apartments stood at 3,758 NIS. For 2.5-3 room apartments, it reached 4,448 NIS; for 3.5-4 room apartments, 5,448 NIS; and for apartments with 4.5 rooms or more, 7,114 NIS.

Tel Aviv remains the most expensive city across all sizes:

1-2 rooms: 5,474 NIS in Tel Aviv, compared to 4,428 NIS in Herzliya, 4,166 NIS in Ramat Gan, 3,814 NIS in Jerusalem, 2,484 NIS in Haifa, and 2,301 NIS in Beer Sheva.
2.5-3 rooms: 7,085 NIS in Tel Aviv, compared to 5,589 NIS in Herzliya, 5,436 NIS in Ramat Gan, 4,864 NIS in Jerusalem, and 2,784 NIS in Beer Sheva.
3.5-4 rooms: 8,857 NIS in Tel Aviv, compared to 7,015 NIS in Herzliya, 6,811 NIS in Ramat Gan, 6,159 NIS in Jerusalem, and 3,484 NIS in Beer Sheva.
4.5+ rooms: 11,272 NIS in Tel Aviv, compared to 9,425 NIS in Herzliya, 8,239 NIS in Ramat Gan, 4,866 NIS in Ashkelon, and 4,901 NIS in Beer Sheva.

"The Government is Ignoring the Rental Market"

Real estate appraiser Ohad Danus, former chairman of the Association of Land Valuers in Israel, explained that the rising rents mirror the stagnation in the housing purchase market:

"Those who postpone buying a home due to high interest rates, uncertainty, or financing conditions do not disappear; they remain in the rental market, driving up demand. Meanwhile, a decline in investor purchases reduces the growth rate of rental supply, resulting in continuous upward pressure on prices."

Danus added that the sharpest increases are no longer in the most expensive cities, indicating that pressure is spilling over to outer circles where households previously sought cheaper alternatives.

Bernard Raskin, CEO and owner of RE/MAX Israel, warned that the current rent increases are only the beginning of a trend:

"Over the years, a discourse against real estate investors has developed in Israel. This 'jealousy economy'—asking why someone should own two apartments when I have none—harms those who do not own a home. The policy driving investors away from the market hurts renters first and foremost."

Sharon Tossia-Cohen, founder and CEO of Rent It, which specializes in long-term rentals, noted that high home prices, interest rates, and required equity are keeping households in the rental market for longer periods, making long-term rental solutions increasingly essential for stability.