The number of rented apartments has surged to 851,600, now accounting for 28.8% of all apartments in the country—up from 24.3% in 2013. Between 2023 and 2024, the number of rental units grew by 2.7%, with an average annual growth rate of 3.4% over the past decade. This trend shows a shift toward a more rental-based housing market.
Rental housing is increasingly concentrated in Israel's major urban centers. A significant 60.5% of rented apartments are located in the 19 largest cities, each with a population of over 100,000. Tel Aviv-Yafo leads with 12.2% of the nation's rental stock, followed by Jerusalem at 9.2%. These cities have seen the highest turnover rates, with rental markets driven by demand from younger and transient populations.
Tel Aviv Sees Most Rental
Israel's regions show stark contrasts in housing patterns. The Northern District has the highest percentage of owned apartments, at 79.5%, while the Tel Aviv District has the lowest, with only 60.4% owned. Correspondingly, Tel Aviv has the highest rental rate at 39.1%, while the Judea and Samaria region and Northern District have much lower rental rates, at 22.2% and 20.4%, respectively.
Demographics Reveal Changing Ownership Patterns
Demographic factors heavily influence whether apartments are owned or rented. Among Jewish residents, 69.5% of apartments are owned, while 30% are rented. In contrast, among Arab residents, 87.7% of apartments are owned, and just 12.3% are rented. The gap widens in non-Jewish localities, where 95.6% of apartments are owned.
Young People and Singles Drive Rental Demand
Age and marital status also play a role in ownership trends. Younger individuals, particularly those under 34, are more likely to rent, with 59.6% of apartments in this age group being rental units. In contrast, 65% of apartments owned by those over 65 are owner-occupied. Married couples are more likely to own their homes, with 78.2% of apartments owned by married individuals, compared to just 40.6% of apartments owned by single people.
The Role of Private Companies in Rental Housing
Private individuals dominate the rental market, renting out about 81% of apartments. However, private companies have become more involved, particularly in Tel Aviv and Herzliya, where rental units from these companies represent a notable portion of the market. Public housing companies and kibbutzim also provide a share of rental properties, accounting for approximately 7% and 4.5% of rental apartments, respectively.
Public Housing Stock Continues to Shrink
Israel’s stock of public housing has been steadily decreasing. In 2024, approximately 60,000 public housing units remain, down from 67,100 in 2013. This decrease reflects a long-term trend where, on average, 1,000 public housing units have been removed from the stock each year.
Israel's housing market is shifting. While homeownership remains the norm for most Israelis, the proportion of renters continues to rise, particularly in urban areas. As housing prices remain high, the demand for rental housing is likely to grow, potentially reshaping the country's housing dynamics in the years ahead.
This version organizes the information into clear sections with direct headlines that guide the reader through the key points. It presents the data in a structured news format, emphasizing the shift in the Israeli housing market.
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