Housing snapshot October 2026: Prices continue downward trend

Average home prices in Israel fell by 0.6 percent in July and August 2026 compared to the previous two-month period, according to the most recent report released by the Central Bureau of Statistics.

Market prices have fallen an average of 1.8% compared to the same period a year earlier, the CBS said. Prices have declined in seven out of the last 12 months.

The housing market has slowed over the past year, partly 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 tamped down sales; the shekel’s strength against the dollar, currently around NIS 3.11, is also affecting demand from overseas buyers.

Last week, the Bank of Israel kept interest rates at 3.25% after cutting rates three times this year. The central bank expects the economy to grow by 5.6% this year and 7.5% in 2027, it said.

During July and August, average prices rose by 0.4% in Haifa, but fell everywhere else: the north (1.5%), Tel Aviv (0.9%), the central district (0.7%), Jerusalem (0.3%) and the south (0.1%).

Compared with the same period last year, prices have fallen 2.7% in the central district, 1.9% in Tel Aviv, 1.5% in the south, 1.4% in Haifa, 0.8% in the north, and 0.2% in Jerusalem. The price index for new apartments declined 0.4% over the past year, CBS said.

Since July–August 2021, average prices throughout Israel have risen 26.8%, while those of new apartments have risen 24.3%, CBS noted.

According to Finance Ministry data for August, 7,532 apartments were sold, a 1% decrease from August 2025. Transactions fell by 2% compared to the previous month.

It was one of the lowest transaction volumes for August recorded since 2000, the ministry noted. Only during the Second Intifada in the early 2000s and the social protests of 2011 were fewer deals recorded in August.

New apartment sales, including subsidized units, totaled 3,362 in August, up 6% from August 2025. A total of 4,170 secondhand apartments were sold, a 7% decrease compared to last year.

Investor activity decreased compared to the previous period, with 1,077 apartments purchased by investors, a 2% decrease compared to August 2025 and a 6% drop from the previous month. At the same time, investors sold 1,171 apartments, representing a 5% decrease compared to the same period last year and an 11% decrease from the previous month.

Sales

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 four-room (three-bedroom) apartment at 11 Arieh Altman Street sold for NIS 3.88 million ($1,247,588). The apartment measures 92 square meters (990 square feet) and is located on the fifth floor of a seven-story building constructed in 2024.

A three-room (two-bedroom) apartment at 87 Shivtei Israel Street sold for NIS 2.2 million ($707,395). The apartment measures 60 square meters (646 square feet) and is located on the first floor of a three-story building constructed in 1930.

A four-room (three-bedroom) apartment at 15 Nahal Oz Street sold for NIS 3.404 million ($1,094,534). The apartment measures 100 square meters (1,076 square feet) and is located on the third floor of an eight-story building planned for 2029.

In Jerusalem, a four-room (three-bedroom) apartment at 5 Etz Hadar Street sold for NIS 5 million ($1,607,717). The apartment measures 45 square meters (484 square feet) and is located on the fourth floor of a four-story building constructed in 1970.

A four-room (three-bedroom) apartment at 7 Sulam Yaakov Street sold for NIS 3.05 million ($980,707). The apartment measures 70 square meters (753 square feet) and is located on the second floor of a five-story building constructed in 1970.

A three-room (two-bedroom) apartment at 13 Adam Street sold for NIS 2.3 million ($739,550). The apartment measures 65 square meters (700 square feet) and is located on the fourth floor of a seven-story building constructed in 1981.

In Beit Shemesh, a four-and-a-half-room (three- to four-bedroom) apartment at 7 Gad Street sold for NIS 2.88 million ($926,045). The apartment measures 117 square meters (1,259 square feet) and is located on the second floor of a three-story building constructed in 2003.

A four-room (three-bedroom) apartment at 8 Reuven Street sold for NIS 2.68 million ($861,736). The apartment measures 103 square meters (1,109 square feet) and is located on the third floor of a four-story building constructed in 2000.

In Haifa, a four-room (three-bedroom) apartment at 1 Ze’ev Hayam Street sold for NIS 1.875 million ($602,894). The apartment measures 97 square meters (1,044 square feet) and is located on the second floor of a three-story building constructed in 1970.

Rentals

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

In Tel Aviv, a three-room (two-bedroom) apartment at 3 Smolenskin Street in the southwestern part of the Old North is available for rent at NIS 9,499 ($3,054) per month. The apartment measures 95 square meters (1,023 square feet) and is located on the first floor of the building.

A three-room (two-bedroom) apartment on Alexander Yanai Street in the northern part of the Old North is available for rent at NIS 11,500 ($3,698) per month. The apartment measures 79 square meters (850 square feet) and is located on the second floor of the building.

In Jerusalem, a four-room (three-bedroom) apartment at 75 Hebron Road in North Talpiot is available for rent at NIS 8,800 ($2,830) per month. The apartment measures 90 square meters (969 square feet) and is located on the fourth floor of the building.

A four-and-a-half-room (three-bedroom) apartment at 25 San Martin Street in Katamonim is available for rent at NIS 8,600 ($2,765) per month. The apartment measures 106 square meters (1,141 square feet) and is located on the 15th floor of an 18-story building.

In Haifa, a four-room (three-bedroom) apartment at 13 Stefan Wise Street in Ramat Shaul is available for rent at NIS 4,800 ($1,543) per month. The apartment measures 105 square meters (1,130 square feet) and is located on the second floor of the building.