Home prices in Israel edged downwards in December 2025 to January 2026 after two consecutive months of increases, according to the most recent information available from the Central Bureau of Statistics.

The housing price index declined by 0.1% compared to the previous period, the ninth monthly drop in the past year. Over the past 12 months, home prices have fallen 0.9%.

The housing market had slowed throughout most of 2025, partially in reaction to the multifront war Israel has been engaged in since Hamas invaded southern Israel on October 7, 2023. High interest rates, a record supply of unsold new housing, and high prices have also helped to tamp down sales. The shekel’s strength against the dollar, currently near a four-year high at NIS 3.12, is also affecting demand from overseas buyers.

Jerusalem recorded the sharpest decline during the two-month period at 0.9%, followed by the Center district, which fell by 0.6%. Tel Aviv saw prices rise by 0.7% during the same period, while the South and Haifa districts both saw marginal gains of 0.1%.

Over the past 12 months, prices have risen by 5.4% in Jerusalem, 3.2% in the north, 0.6% in the south, and 0.5% in Haifa. Prices declined by 3.9% in the central district and 2.8% in Tel Aviv.

According to Finance Ministry data for January, 6,933 transactions were recorded during the month, a 9% drop compared to the same month the previous year. That decline was actually steeper than it looks, because January 2025 sales were unusually low after buyers rushed to complete purchases in December 2025 to avoid paying a higher VAT rate.

New home sales dropped 20% from the past year to 2,315 units. Secondhand home sales fell 3% to 4,618 units, while investment acquisitions dropped 9% to 1,088 apartments.

A separate report by CBS detailed the rising number of Israelis living in rented homes, in a country where homeownership has traditionally been valued.

As of July 2025, approximately 3.02 million residential housing units exist in Israel, of which 69.8% are owned by their residents, and 29.6% are rented. For comparison, in 2013, 75.2% of Israelis lived in homes they owned, and only 24.3% rented.

The shifting demographic is attributed to rising real estate costs. In the European Union, about 31.6% of households lived in rental housing in 2024, CBS noted.

In Tel Aviv, 49.4% of residents rent, one of the highest rates in the nation, while in Jerusalem, 32.3% rent, the report found.

To provide the housing snapshot below, we used the Israel Tax Authority’s database, which records the actual prices paid for properties. The focus is on sales over the last month to present the most up-to-date picture of the market.

In Tel Aviv, a three-room (two-bedroom) apartment at 56 Kehilat Lodz Street sold for NIS 3,715,000 ($1,192,616). The apartment measures 78 square meters (839 square feet) and is located on the fifth floor of a seven-story building constructed in 2019.

A three-room (two-bedroom) apartment at 46 Shalma Street sold for NIS 2,681,381 (about $861,800). The apartment measures 81 square meters (872 square feet) and is located on the second floor of a 17-story building constructed in 2020.

A three-room (two-bedroom) apartment at 9 Kompert Street sold for NIS 4,200,000 (about $1,350,000). The apartment measures 72 square meters (775 square feet) and is located on the third floor of an 11-story building constructed in 2022.

In Jerusalem, a four-room (three-bedroom) apartment at 14 Harav Dolgin Street sold for NIS 2,540,000 ($826,553). The apartment measures 94 square meters (1,012 square feet) and is located on the third floor of a five-story building constructed in 2013.

A four-room (three-bedroom) apartment at 2 Aharon Brand Street sold for NIS 3,640,000 ($1,168,539). The apartment measures 108 square meters (1,163 square feet) and is located on the sixth floor of a nine-story building constructed in 1984.

A three-room (two-bedroom) apartment at 116 Herzl Boulevard sold for NIS 2,940,000 ($946,555). The apartment measures 62 square meters (667 square feet) and is located on the third floor of a 10-story building constructed in 2025.

In Beit Shemesh, a five-room (four-bedroom) apartment at 6 Moshe Rabbeinu Street sold for NIS 2,750,000 ($885,383). The apartment measures 120 square meters (1,292 square feet) and is located on the ground floor of a five-story building constructed in 2015.

A four-room (three-bedroom) apartment at 27 Roi Klein Street sold for NIS 2,750,000 ($889,679). The apartment measures 108 square meters (1,163 square feet) and is located on the second floor of a 13-story building constructed in 2021.

In Haifa, a four-room (three-bedroom) apartment at 12 Hayarkon Street sold for NIS 2,380,000 ($774,487). The apartment measures 79 square meters (850 square feet) and is located on the ground floor of a three-story building constructed in 1940.

The database of the real estate website Madlan was used to compile this sample of rental apartments on the market with a focus on three-room (two-bedroom) properties, suitable for a couple, two roommates, or a small family.

In Tel Aviv, a 2.5-room (one-bedroom) apartment at 75 Ahad Ha’am Street is available for rent at NIS 8,800 (about $2,400) per month. The apartment measures 80 square meters (861 square feet) and is located on the third floor of the building. The property includes two balconies.

A four-room (three-bedroom) apartment on Recanati Street in Ramat Aviv Gimel is available for rent at NIS 12,800 (about $3,400) per month. The apartment measures 120 square meters (1,292 square feet) and is located on the 14th floor of the building. The property includes an underground parking space, two bathrooms, a balcony, and a secure room (Mamad).

In Jerusalem, a three-room (two-bedroom) apartment at 9 Haim Bajayo Street in the German Colony is available for rent at NIS 9,000 (about $2,390) per month. The apartment measures 98 square meters (1,055 square feet) and is located on the fourth floor of the building. The property includes a parking space, a storage room, air conditioning, and an elevator.

A three-room (two-bedroom) garden apartment at 3 Hamatzor Street in Old Katamon is available for rent at NIS 12,400 (about $3,290) per month. The apartment measures 98 square meters (1,055 square feet) and is located on the ground floor. The property includes a large garden, two bathrooms, and a storage room.

In Haifa, a four-room (three-bedroom) apartment at 10 Almog Street in Ramat Hanasi is available for rent at NIS 7,000 (about $1,860) per month. The apartment measures 109 square meters (1,173 square feet) and is located on the second floor of the building. The property includes an underground parking space, two bathrooms, a balcony, a storage room, a secure room (Mamad), and an elevator.

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