The real estate index: rent versus average wage
Walla!
Together with the job site AllJobs finds that in most cities the average wage per employee has risen, but not to a level that can catch up with the steep rise in housing prices.
Meaning: Those who are forced to pay rent are severely affected by their standard of living, even in areas that are considered the basis for government support.
Between Ashkenazi
27/06/2022
Monday, 27 June 2022, 09:09 Updated: 09:59
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While housing prices are skyrocketing and new apartment prices have completed a 21.8% increase from last year, while at the same time rental prices have also jumped by a significant percentage, the question arises: will the average wage we earn be enough to pay the rent?
And if it has risen, does the increase match the increase in the housing item in our spending?
Before we move on to rent, it must be noted that the rise in interest rates, announced by the Governor of the Bank of Israel last month, has raised the monthly repayment of existing mortgage holders by that amount.
Of course, there are those who have been hurt less and those who have been hurt more, but there is no one who returns a mortgage and does not feel the rise in interest rates in his pocket.
In order to know whether the average wage is sufficient to meet the payment of housing prices, we collected data through the AllJobs job site on the average wage by different cities in Israel, in order to compare it with the increase in housing prices there.
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Intelligence: Accelerated construction in recent years has not stopped the rise in rental prices in the city (Photo: Reuven Castro)
You will not believe what is happening in the "base" of the change government
In Modi'in
, the average wage per employee living in the city in 2020 was NIS 11,923, in 2021 the average wage per employee in the city of Modi'in increased by 4% to NIS 12,353, while in 2022 the average wage per employee in the city of Modi'in increased by NIS 13,642. .
According to data from the madlan website, rental prices for a 3-room apartment in Modi'in-Maccabim-Re'ut have jumped by close to 40% in the past year.
So in 2021 the asking price for a month of rent for an apartment of this size amounted to NIS 4,661, while today the asking price for that apartment is NIS 6,500.
One does not have to be thought to easily conclude that the rise in the rental price is much more than a rise in wages, or in other words: someone who lives in a rented city - and earns an average wage - is severely hurt as a result of rising housing costs.
And not only in Modi'in: also
in Ramat Hasharon
, Where the highest increase in rent for a four-room apartment was recorded, with a jump of about 42% in the monthly rent.
In 2021, the average monthly rental price for such an apartment amounted to NIS 6,153, while today the asking price for that apartment is NIS 8,725.
And what about the average wage per employee living in Ramat Hasharon?
In 2020 it amounted to NIS 12,726, in 2021 the average wage per employee in Ramat Hasharon increased by 10% to NIS 13,953, while in 2022 the average wage per employee in the city of Ramat Hasharon increased by 4% to NIS 14,580.
Needless to say, even these wage increases do not catch up with the steep jump in rental prices.
And there is also a statistic here with political significance: one of the stated goals of the current government was to do good with the middle class which is its main pool of voters.
When you look at what is happening in the cities that represent the upper-middle class, you see a decline in the standard of living due to the rise in rental prices, which bypassed any benefit that added little to family income.
It can be argued that Israel is only part of a global trend in which real estate prices have soared, but it is difficult to ignore that no matter what the source of the problem, in terms of the cost of living, with an emphasis on the housing component, "change government" has failed not only its opponents Canceled from its constituents.
Residential buildings near Be'er Sheva University.
The average wage per employee has fallen, the rent has actually risen (Photo: Reuven Castro)
In Ashdod and Givatayim and BS, there were decreases in the average wage
But Modi'in and Ramat Hasharon still represent the "good" cases, at least when it comes to the increase in the average wage.
Even if the increase in income did not catch up with the rise in rental prices, it at least slightly narrowed the gap.
However, not all localities in Israel have seen a gradual increase in the average wage.
Where were the wage declines recorded?
In Ashdod
, for example: an employee living in the city earned a sum of NIS 10,581 in 2020.
In 2021, the average wage per employee in Ashdod increased by 16% to NIS 12,321, but in 2022, the average wage per employee living in Ashdod decreased by 4% to NIS 11,843.
Givatayim
also
saw a decrease in the average wage of an employee living in the city, while in 2020 the wage living in the city earned an average of NIS 12,578, in 2021 the average wage increased by 4% to NIS 13,052, but in 2022 there was a 2% decrease in the average wage and it stands at 12,730 NIS.
in Be'er Sheva
Considered a real estate hit for many years, this year there was a decrease in the average salary for an employee living in the city. While in 2020 an employee living in the city earned an average of NIS 11,081, in 2021 there was an increase of 5% and the average salary for city residents was NIS 11,662. A decrease of 3% and the average salary stands at
NIS
11,262.And
where was the largest increase recorded?
1% so that the average salary was NIS 12,351, while this year the salary is NIS 13,786. Needless to say, this nice increase does not, of course, catch up with the increase in rental prices in the city.
Liat Ben Torah Shoshan, Director of the Campus Management Department at ALLJOBS (Photo: PR)
There is no adequacy between the increase in wages and the increase in rental prices
Liat Ben-Torah Shoshan, Director of the Career Management Department at AllJobs: "We see that wage levels have been on a consistent upward trend over the past few years. At
the same time, it can be seen that the increase in wage levels is not commensurate with the rate of increase in wages in the main cities in Israel.
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