Rent rises moderate due to emigration and reserve duty

The rents in Israel increased by only 4 % over the past year, although it was expected to be higher, due to the increase in immigration from Israel, the Bank of Israel writes in the residence housing from its report 2024.

The rents rose only 4 % in 2024, despite the fact that during the year, about 75,000 homes were evacuated in the south and north, and 20,000 homes remained in northern Israel. It was removed from the effective inventory of apartments in Israel, and a mixture of such a major evacuation of apartments in Israel was supposed to be supposed to increase the demand for rents and increase prices – which were not fulfilled.

One of the reasons for this was that the hotels were in low job and were able to absorb some of the people who were evacuated. However, another reason was the negative migration balance, which greatly increased last year.

In 2024, there was a clear decrease of about 18,700 Israelis, compared to a net increase of about 25,000 in 2023 and an increase of about 64,000 in 2022.

Thus, a position was created, while the evacuation of apartments in the border areas reduced the available housing stock, and the negative demand was reduced, perhaps by a similar size, as well as the response provided to many hotels.

Another factor in the low demand for rent is the long reserve duty performed by thousands of young people, which during the year 2024 also charged the demand for rent.

It was published by Globes, Israel Business News – En.globes.co.il – on March 26, 2025.

© Copy Publish Publisher Itonut (1983) Ltd. , 2025.