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Owner-occupied housing costs fell 1.8% over the year - unevenly across districts

Home prices, nationwide
−1,8 %sur un an, depuis 2025-07
Newly built homes
−0,4 %sur un an, depuis 2025-07
Tel Aviv district
−1,9 %sur un an, depuis 2025-07
Jerusalem district
−0,2 %sur un an, depuis 2025-07
Haifa district
−1,4 %sur un an, depuis 2025-07
Central district
−2,7 %sur un an, depuis 2025-07
Northern district
−0,8 %sur un an, depuis 2025-07
Southern district
−1,5 %sur un an, depuis 2025-07

The owner-occupied housing price index - which tracks what it costs to live in a home you own - fell 1.8% in July 2026 compared with July 2025. It is not a rent figure, but it is the backdrop against which your landlord is weighing the value of the flat.

The drop is not even. The Center district fell 2.7%, Tel Aviv 1.9%, Haifa 1.4%, the South 1.5%, the North 0.8%, and Jerusalem barely moved, down just 0.2%. New apartments, meanwhile, fell only 0.4% over the same year - far less than the overall average. The existing housing stock is cooling faster than new construction.

If you are negotiating a lease renewal or a rent, do not lean on the national figure. Check what happened in the district where the flat actually sits - the gap between the Center and Jerusalem is wide enough to change the conversation.

Sources

The market letter

Once a month: the Bank of Israel rate, mortgage interest rates, housing prices by district and construction starts. Written short, from the official figures.

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General information. This is neither investment advice nor legal advice, and it does not predict where rates will go.

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