Israel's CBS: Fewer Families Planning to Buy an Apartment
The share of Israeli households planning to purchase an apartment has more than halved, according to Dr. Doron Sayeg from the Central Bureau of Statistics. The real estate market is slowing: the number of transactions in 2025 fell by 10%, and by 12% for new builds. The housing price index has been declining for several months. Economists note that apartments are losing appeal as investments: rental yields are lower than mortgage costs, and funds are moving to bank deposits and funds.
The share of Israeli households planning to purchase an apartment has more than halved, said Dr. Doron Sayeg from the Central Bureau of Statistics (CBS) on Monday, July 27. Speaking at a conference of the Association of Mortgage Consultants, he noted that the real estate market is in a slowdown phase. The number of transactions in 2025 decreased by 10% compared to the previous year, and by 12% for new apartments. The housing price index has been declining for several months. Chief economist of the Phoenix Group, Matan Shitrit, supported this assessment, pointing to the low affordability of housing for young couples: housing costs have grown much faster than the average salary. He also noted that apartments are losing appeal for investors: mortgage costs exceed rental yields, so the expectation of price appreciation becomes less obvious. In the last two to three years, there has been a noticeable outflow of money into bank deposits, funds, independent stock trading, and savings insurance policies. Shitrit emphasized that in the long term, housing prices are likely to continue rising due to economic growth and demographics.