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How long will it last?
While there was a sharp decrease of 18.4% in the supply of apartments for rent in Israel in just one month, between the months of January and February 2024 - it seems that rental prices continue to be stable and even, contrary to the nature of the market, decreases are evident in large and central cities such as Tel Aviv, Herzliya, Holon, Ashdod and Netanya . This is according to a report published by the WeCheck company, which specializes in the rental market in Israel, and analyzes the rental market data in Israel as of February 2024.
As mentioned, the biggest price drops were in the cities of Tel Aviv (4.7%); Herzliya (4%); Ashdod (2.7%); Holon and Netanya with an identical decrease of 1.6% each. On the other hand, rental prices in the city of Jerusalem increased by 4.5% and in Haifa by 3.5%. At the national level, there was an overall decrease of 0.9% in the average housing prices, compared to February last year.
Despite the declines, the report shows that even in the month of February, rent prices among the largest cities are Tel Aviv, Herzliya and Jerusalem; At the bottom of the list are Beer Sheva, Haifa and Ashkelon; The city with the sharpest price increase is Beer Sheva, which registered a 2.8% increase in the average rental price in one month.
"We are on our way to a difficult summer for renters"
CEO of WeCheck, Rami Ronan: "After several months of an increase in the supply of apartments, we are seeing a reversal of the trend from January with a decrease in the supply of apartments offered for rent which is about 18% on average, while in Tel Aviv there is a decrease close to 20%. Despite this, the supply of apartments for rent increased compared to February last year, with sharp double-digit gaps in the major cities. In Tel Aviv, for example, the supply of apartments for rent decreased between January and February, but jumped at a rate of about 44% compared to the same period last year." "
After a period of prolonged price decreases from month to month, the month of February is characterized by a more moderate price decrease of less than one percent at the national level. Looking ahead, we expect that the prices will maintain a stable trend with a tendency for price increases which will increase towards the summer months. We assume that the supply will also decrease, which will create a more difficult summer for renters, this is on the assumption that Israel will not enter into a significant regional campaign in Lebanon, which will fundamentally change the behavior of the market.
" February 2024. The data is based on real information from tens of thousands of apartments throughout the country and is based on the prices of the final rental contracts in them. The data is updated monthly and is also available in the RentAI system, which shows current rental data throughout the country down to the resolution of neighborhoods and streets.
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