Rental market splits: more small apartments - and a shortage of large ones

Israel's rental market presents a split picture in July 2026: while the supply of small apartments (1–3 rooms) surged by 14.4% compared to June, the supply of large apartments (4–5 rooms) dropped by 15.9% and is 25% lower than in July last year. National prices remained stable month-to-month but are 4.8% higher than last year. Jerusalem led the surge in supply (48.3%), while Ashkelon saw a decline of 26.1%. WeCheck's CEO warns of a structural shortage in large apartments.

Israel's rental market is diverging: WeCheck data for July 2026 reveals an overall 2.5% increase in rental supply compared to June, reaching 16,061 apartments, but behind this figure lies a significant gap between apartment types. The supply of small apartments (1–3 rooms) surged by 14.4% within a month and returned to a level similar to July 2025, with a slight 0.6% increase year-over-year. In contrast, the supply of large apartments (4–5 rooms) dropped by 15.9% in June and is now 25% lower than in July last year. Sharp gaps were also recorded between cities: Jerusalem led with a 48.3% surge in supply within a month, Tel Aviv rose by 20.3%, Netanya by 8%, Ramat Gan by 7.7%, and Rishon LeZion by 6.9%. Conversely, Ashkelon saw a 26.1% decline and Ashdod a 6.1% decline. National rental prices remained unchanged between June and July, but year-over-year they are 4.8% higher. Large apartments saw a 4.8% annual increase, while small apartments had a more moderate 3.1% rise. WeCheck CEO Rami Ronen warns that the shortage of large apartments is expanding and families are finding themselves without adequate solutions, and that the seasonal recovery in small apartments is no substitute for solving the structural shortage.