While home prices waver, rents are moving strongly upwards
The Home Price Index rose 0.2% between May-June and June-July 2026, while year-on-year it fell 1.2%. Rents, measured by the Housing Services Index, rose 0.7% month-on-month and 3.6% year-on-year, moving in the opposite direction to home prices. A new Central Bureau of Statistics index shows secondhand home prices fell 1.2% in Q2 2026, indicating sellers are cutting prices. Regional variations are notable, with the central district declining 3.2% year-on-year while Jerusalem and northern districts saw 1% rises. Rents, representing a quarter of the CPI, have been a major driver of inflation, with the CPI rising 1.5% over the past year. The Ministry of Construction and Housing belatedly published rent policy recommendations, though progress is unlikely during political 'garbage time'.
The Home Price Index is showing mixed signals, rising 0.2% between May-June and June-July 2026 after a previous substantial fall, but declining 1.2% year-on-year. Rents continue to climb sharply, with the Housing Services Index rising 0.7% month-on-month and 3.6% year-on-year, creating a clear divergence between home prices and rental costs. The Central Bureau of Statistics has launched a new quarterly index tracking secondhand home prices, which fell 1.2% in Q2 2026 compared to Q1, suggesting sellers are struggling to find buyers and cutting prices. Regional variations are notable: the central district saw a 3.2% year-on-year decline, while Jerusalem and northern districts saw 1% rises. Rents, representing a quarter of the CPI, have been a major driver of inflation, with the CPI rising 1.5% over the past year. The Ministry of Construction and Housing belatedly published rent policy recommendations, though the article notes this comes during political 'garbage time' when progress is unlikely.