Housing snapshot August 2026: Home prices fall 1%, largest drop in eight years

Zev Stub is the Times of Israel's Diaspora Affairs correspondent.

Home prices in Israel recorded their largest monthly decline in eight years in April and May 2026, falling by 1% compared to the previous two-month period, according to the most recent report released by the country’s Central Bureau of Statistics.

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Market prices have fallen an average of 2% compared to the same period a year earlier, marking one of the few sustained annual declines in the past decade, the CBS says. Prices have declined in nine out of the last 12 months.

Israel’s 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 also helped to tamp down sales. The shekel’s strength against the dollar, currently at NIS 3.06, is also affecting demand from overseas buyers.

The Israeli currency is about 10% stronger than it was a year ago, and has fluctuated by more than 20% over the past 16 months, trading data shows. The strength of the shekel means that while interest from foreign buyers is still high, their dollars, pounds and euros don’t go as far as they used to, with the cost of homes rising by hundreds of thousands in some cases when exchanging currencies.

The decline also follows market uncertainties regarding the US-Israeli war with Iran, which began on February 28.

During April and May, prices declined by 2.3% in Tel Aviv, 1.8% in Jerusalem, 0.5% in Haifa, and 0.3% in the north. They were unchanged in the central district and the south.

Compared with the same period last year, prices have climbed 1.4% in the north and 0.3% in Jerusalem. Prices fell by 3.2% in the central district, 2.6% in Haifa, 2.5% in Tel Aviv, and 0.5% in the south.

According to Finance Ministry data for May, a total of 8,246 apartments were sold, a 23% increase compared to May 2025. Transactions rose 63% compared to the previous month.

The sharp monthly surge was largely attributed to the exceptionally low activity in April, which had fewer working days due to the Passover holiday.

New apartment sales, including subsidized units, totaled 3,613 in May, up 51% from May 2025. A total of 4,633 secondhand apartments were sold, a 7% increase compared to last year.

Investor activity increased significantly during the month, with 1,319 apartments purchased by investors, a 43% increase compared to May 2025 and a 76% jump from the previous month. At the same time, investors sold 1,275 apartments, representing a 5% increase compared to the same period last year and a 42% increase from the previous month.

Over the past year, rental prices rose 4.4% even as purchase prices fell, Bank Hapoalim economists wrote in a note to investors. The rise was attributed to a lagged reaction to previous interest rate increases, which dampens investor purchasing while pushing more residents into the rental market, they said. The trend may soon cool as the market adjusts to a surplus of new housing available, it added.

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 19 Bezalel Street sold for NIS 3.8 million ($1,242,000). The apartment measures 70 square meters (753 square feet) and is located on the first floor of a three-story building constructed in 1950.

A three-room (two-bedroom) apartment on Sheva Hashikmim corner sold for NIS 3.45 million ($1,127,000). The apartment measures 48 square meters (517 square feet) and is located on the second floor of a six-story building constructed in 2019.

A four-room (three-bedroom) apartment at 15 Einstein Street sold for NIS 7.9 million ($2,582,000). The apartment measures 118 square meters (1,270 square feet) and is located on the 13th floor of a 30-story building constructed in 2023.

In Jerusalem, a three-room (two-bedroom) apartment at 10 Kore Hadorot Street sold for NIS 2.775 million ($907,000). The apartment measures 68 square meters (732 square feet) and is located on the first floor of a five-story building constructed in 1985.

A four-room (three-bedroom) apartment at 2 Gershon Avner Street sold for NIS 3.3 million ($1,078,000). The apartment measures 98 square meters (1,055 square feet) and is located on the first floor of a 14-story building constructed in 2016.

A four-room (three-bedroom) apartment at 107 Aharon Eshkoli Street sold for NIS 2.79 million ($912,000). The apartment measures 82 square meters (883 square feet) and is located on the first floor of a two-story building constructed in 1970.

In Beit Shemesh, a four-room (three-bedroom) apartment at 5 Ilfa Street sold for NIS 2.61 million ($853,000). The apartment measures 111 square meters (1,195 square feet) and is located on the first floor of a seven-story building constructed in 2024.

A four-room (three-bedroom) apartment at 36 Talmud Yerushalmi Street sold for NIS 2.65 million ($866,000). The apartment measures 103 square meters (1,109 square feet) and is located on the second floor of a six-story building constructed in 2022.

In Haifa, a four-room (three-bedroom) apartment at 2 Avraham Lessin Street sold for NIS 2.115 million ($691,000). The apartment measures 117 square meters (1,259 square feet) and is located on the fifth floor of a 12-story building constructed in 2020.

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 four-room (three-bedroom) duplex apartment at 11 Nahalal Street, Nahalat Yitzhak is available for rent at NIS 14,000 ($4,575) per month. The apartment measures 120 square meters (1,292 square feet) and is located on the fourth and fifth floors of the building.

A three-room (two-bedroom) apartment at 6 Sirkin Street in the Old North is available for rent at NIS 11,000 ($3,595) per month. The apartment measures 75 square meters (807 square feet) and is located on the second floor of the building.

In Jerusalem, a five-room (four-bedroom) apartment on Derech Beit Lehem Street is available for rent at NIS 8,900 ($2,908) per month. The apartment measures 124 square meters (1,335 square feet) and is located on the second floor of the building.

A four-room (three-bedroom) apartment on Shalom Yehuda Street is available for rent at NIS 7,250 ($2,369) per month. The apartment measures 95 square meters (1,023 square feet) and is located on the second floor of a small six-unit building.

In Haifa, a five-room (four-bedroom) apartment at 68 Haviva Reich Street is available for rent at NIS 6,700 ($2,190) per month. The apartment measures 115 square meters (1,238 square feet) and is located on the sixth floor of the building.

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