Yad2 data reveals: The neighborhoods where rental prices have surged
Yad2 data shows that in Jerusalem's Beit HaKerem and Tel Aviv's Sarona, rental prices rose by double-digit percentages over the past year, significantly outpacing the 4.4% national average. Increases for three-room apartments were sharper than for four-room units, though some Tel Aviv neighborhoods saw price declines.
Rental prices in Israel have been rising steadily for a long period. From October 7, 2023, to March 2026, an average increase of about 7% was recorded nationwide. According to the latest Central Bureau of Statistics data for June, the annual rental growth rate stands at 4.4%, while the apartment maintenance index rose by 1.8% over the past year.
To understand the impact of this trend, the Yad2 group analyzed rental price fluctuations by neighborhood. It is important to note that these figures represent asking prices rather than final contract values.
Growth: Three-room vs. Four-room apartments
Data indicates that monthly rent for three-room apartments increased at a faster rate than for four-room units. In both categories, the annual hike added hundreds of shekels to monthly costs.
The most significant annual increase was recorded in Jerusalem: in the Beit HaKerem and Ramat Beit HaKerem neighborhoods, three-room apartment rents rose by 17%, from 5,576 shekels in July 2025 to 6,524 shekels this July—a gap of 948 shekels. In Givat HaRakafot (Kiryat Ata), similar units saw a 338-shekel increase (from 2,325 to 2,663 shekels).
The largest monetary gap for four-room apartments was in Tel Aviv's Ganei Sarona, which saw a 10.8% rise (from 12,066 to 13,371 shekels, an addition of 1,305 shekels). In Petah Tikva's quiet center area, four-room rents rose by 10.5% (from 6,054 to 6,690 shekels).
Declines in Tel Aviv
Despite the general upward trend, Tel Aviv stands out for neighborhoods where prices have actually decreased. In the northern and southern parts of the New North area, four-room apartment rents fell by 5–5.5% (a reduction of over 600 shekels per month). The Neve Hen neighborhood saw the sharpest decline for three-room apartments at 11.7% (about 635 shekels less), while Yad Eliyahu saw a 7.5% drop (about 500 shekels).
Sima Azulay, CEO of Second-Hand Real Estate at Yad2, notes that the market is no longer uniform: "Local demand, supply, urban renewal, and accessibility influence prices more than ever. It is crucial to examine the market at the neighborhood level, as the distance between two adjacent areas can result in a gap of hundreds or even over 1,000 shekels in monthly rent."
Talia Koren, partner at Re/max Advantage, adds: "There is a direct link between purchase and rental prices. Many who cannot afford a mortgage turn to renting, sustaining high demand. The rise in three-room apartment rents reflects a trend of people seeking to lower monthly costs by moving into smaller units or to cities with better transit infrastructure, such as Bat Yam or Petah Tikva."
