How much do you need to earn to buy a good apartment in Tel Aviv

An analytical piece by Cursor Info calculates the family income and initial capital required to purchase a four-room apartment in Tel Aviv. At a price of 4.5–5 million shekels, the monthly mortgage payment is 15,200–16,900 shekels, requiring a net family income of 45,000–55,000 shekels and a down payment of 1.35–1.5 million shekels.

Cursor Info publishes calculations showing the income a family needs to buy a four-room apartment in Tel Aviv. A good apartment of this size costs 4.5–5 million shekels, depending on the area: in Nahalat Yitzhak about 4 million, in Ramat Aviv Gimel 4.2–4.5 million, in the city center up to 5.5 million. With a 30% down payment and a 25-year loan, the monthly payment is 15,200–16,900 shekels. To keep the mortgage at no more than 40% of income, net family income should be 38,000–42,000 shekels; at a 30% share, 51,000–56,000 shekels. In practice, a couple with an income of 45,000–50,000 shekels can consider apartments in the lower and middle price range. The initial capital must be 1.35–1.5 million shekels. For comparison, a similar apartment in Holon costs 2.4–2.8 million shekels and requires an income of 20,000–32,000 shekels, while in Harish it costs 1.3–1.5 million and requires 11,000–17,000 shekels respectively. The article also notes that over the year the monthly payment decreased by 7.4%, and over ten years housing prices rose by 45–65%.