While everyone is talking about housing prices that have soared 15.2% in the past year, they seem to be missing out on the Israeli government's biggest failure - the meteoric surge in rental prices - as a result of policies that do not encourage long-term rents as promised.
Data obtained by the "Real Estate Today" system, based on a price survey of the Yad2 website, show that rental prices in Israel jumped in the first quarter of 2022 by a maximum of 19% compared to the corresponding quarter in 2021.
The increase in rent was recorded in almost all of the top 30 cities in the country surveyed, with the exception of a few individual cities, where there was a stagnation in rent or a slight decrease.
The analysis examined the ads on the Yad2 website for renting 3- and 4-room apartments in the first quarter of this year compared to those of last year.
4-room apartments - a maximum jump of 19% in NIS
The city that leads in the jump in rental prices in the first quarter of the year is Tel Aviv - the rent of 4-room apartments in the city jumped by 19% in the quarter to NIS 9,800 on average per month, and the rent of 3-room apartments in the city climbed by 16% to NIS 7,460 On average.
The other cities that recorded a jump in the rental prices of 4-room apartments are Rosh HaAyin with an increase of 17% to NIS 5,090 per month on average, Ramat Hasharon and Afula with an increase of 16% each to NIS 7,800 and NIS 2,910, respectively.
A 14% jump in the NIS was recorded in the cities of Herzliya (NIS 7230), Ramat Gan (NIS 6,760), Tiberias (NIS 2,970) and Hadera (NIS 4,160 per month).
Netanya recorded a 13% increase in rent, to NIS 5,190 per month, in Givatayim an increase of 12% to NIS 7,380, and in the cities of Hod Hasharon and Eilat, there was an increase of 10% to NIS 5,670 and NIS 4,390, respectively.
On the other hand, in the cities of Kiryat Motzkin, Lod and Holon, the rent for 4-room apartments remained unchanged in the first quarter of 2022 compared to that of 2021 - and amounted to an average of NIS 3,390, 3,830 and 5,220 per month, respectively.
In the city of Tirat Carmel, there was also a 5% decrease in rent to NIS 3,550 a month.
3-room apartments - rent increased up to 16%
In the rent of 3-room apartments offered for rent on the Yad2 website, there was a jump of a maximum of 16% in Tel Aviv, followed by plowing with a 15% increase in NIS to NIS 2,300 per month, Herzliya with a 13% increase to NIS 6,000, Ramat Hasharon with an 11% increase to NIS 5,600, Givatayim and Rosh HaAyin with a 10% increase to NIS 5,800 and NIS 4,090, respectively, a 9% increase in NIS was recorded in the cities of Eilat (to NIS 3,690 per month), Ramat Gan (NIS 5,440 ), And Kiryat Gat (NIS 2,850).
In Beit Shemesh, rents rose by 8% to an average of NIS 3,360 per month, a 7% increase in Hod Hasharon (NIS 4,430 per month), Rehovot (3,950), Dimona (1,880), and Afula (NIS 2,110 per month).
On the other hand, in the city of Lod, the rent for 3-room apartments remained unchanged in the first quarter of the year at NIS 3,090 per month, in Kiryat Ata there was a decrease of 1% in NIS to NIS 2,340 and in Tirat Carmel the rent decreased by 3% to NIS 2,490 In.
In numerical terms, the most expensive cities in Israel in terms of rental prices for 4-room apartments are Tel Aviv (NIS 9,800 per month), Ramat Hasharon (NIS 7,800), Givatayim (NIS 7,380), Herzliya (NIS 7,230), and Ramat Gan (NIS 6,760).
The most expensive cities in 3-room apartments are Tel Aviv (NIS 7,460 per month), Herzliya (NIS 6,000), Givatayim (NIS 5,800), Ramat Hasharon (NIS 5,600) and Ramat Gan (NIS 5,440 per month).
"The main reason is the gap between supply and demand"
Ayelet Nitzan, VP of Marketing at Yad2, said that "data can be seen that rental prices in many cities in Israel and especially in the central region are soaring by up to 19% in the first quarter of 2022, with the main reason being the gap between supply and demand.
"Demand levels for rental apartments are constantly rising in light of the public's difficulty in purchasing an apartment at today's market prices, and given that supply has not increased accordingly, among other things in light of restrictions on real estate investors renting apartments, the immediate result is rising prices."
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