The latest index of rental prices has been published by the Central Bureau of Statistics. In Q3 of 2022, the price of a 2.5-3-bedroom apartment in Israel rose by 2.1%, the highest increase noted in a long time. In Jerusalem, the rental prices of an equivalent-sized apartment experienced an increase similar to the national average – 2.1%, where here, too, the increase is unusually high relative to previous quarters. High prices, of course, indicate high demand relative to supply.
This price increase affects 25% of those in Israel aged 20 years and up (1.48 million people), who live in rental apartments. Among 20–35-year-olds, the percentage is higher, and stands at 34% (41% among Jews and 12% among Arabs); in Jerusalem, characterized by a large population of students and young people, 38% of 20–35-year-olds (51% among Jews and 21% among Arabs) live in rental apartments. Among the large cities, the only ones with more than 50% rental (among 20-35 year olds) is Beersheba (51%), Bnei Braq (53%) and Tel Aviv (67%). Note that 17% of young renters in Israel (22% in Jerusalem) also own an apartment.
The rental prices in Tel Aviv are the highest among the large cities. According to the data, an average 2.5-3 bedroom apartment goes for 7,560 shekels, after an increase of 2.6% in Q3 of 2022. Rental of a similarly-sized apartment in Ramat Gan goes for 5,850 shekels, and in Jerusalem – 5,330 shekels.
Below these three cities is a large group of cities where rental prices range from 4,320 (Ashdod) to 4,990 (Kfar Saba), and at the bottom of the list of the large cities are Beersheba, Ashkelon and Haifa.
Rental prices in Jerusalem are, on the average, 5% higher than the overall average in Israel (for comparison, the average rental price in Tel Aviv is 48% higher than the overall average), but the differential is not identical for all apartment sizes. In small apartments – studio and one-bedrooms – the Jerusalem prices are similar to the overall Israel average (higher by only 1%), in 1.5-2 bedroom apartments the price in the city is 8% higher than the national average, and in 2.5-3 bedrooms, the difference is event higher, whereby a Jerusalem apartment goes for 13% more than the Israel average (for comparison, a similarly sized apartment in Tel Aviv exceeds the national average by 61%), and larger apartments of 3.5-5 bedrooms in Jerusalem will go for 11% more than the national average.
For the full data see here (Hebrew).