CBS: Rental costs in sharp decline, hire skyrockets | Israel Times

spsingh
12 Min Read
Disclosure: This website may contain affiliate links, which means I may earn a commission if you click on the link and make a purchase. I only recommend products or services that I personally use and believe will add value to my readers. Your support is appreciated!

The index for June 2026 remained unchanged in comparison to Might. The once a year inflation fee remained moderately average, with the CPI emerging 1.6% during the last 365 days (June 2026 in comparison to June 2025).

The housing marketplace continues to turn a transparent cooling pattern: The overall house value index, which isn’t a part of the CPI, plummeted via a complete % in only one month.

Value index: Tradition become costlier, whilst greens and clothes become inexpensive

The steadiness within the normal index this month is the results of opposing forces in more than a few client sectors. Notable value will increase have been recorded in tradition and leisure, which rose via 1.0%, the housing class (reflecting hire and ongoing housing bills within the index), which rose via 0.7%, well being, which rose via 0.6%, and meals, which rose via 0.4%.

Conversely, those will increase have been offset via vital value decreases in contemporary fruit and veggies, which plummeted via 5.2%, clothes and sneakers, which diminished via 2.7%, delivery, which shed 0.7%, and furnishings and family apparatus, which diminished via 0.5%.

Meals: Dairy merchandise grow to be costlier, chocolate and flour on a downward pattern

Throughout the meals class (except fruit and veggies), which recorded an general build up of 0.4%, the fee hike in milk and dairy merchandise used to be specifically outstanding, emerging via 1.1% and considerably affecting the overall index. A deeper breakdown unearths sharp will increase in foods at paintings (4.2%), baking and cake adorning merchandise (2.9%), espresso tablets or blends (2.4%), ready salads (2.2%), and cheese (1.9%). Meat and poultry costs additionally contributed to the upward push, with a 1.0% build up in red meat, frozen hen, and red meat. Conversely, customers can in finding solace in value drops for chocolate and tahini, which diminished via 2.3%, in addition to white flour and syrup concentrates, which shed 1.8% in their price.

The contemporary greens and end result class recorded probably the most spectacular lower this month (–5.2%) and acted as the principle anchor offsetting value will increase within the financial system. The contemporary fruit index led the craze with a 7.9% drop: Watermelon costs plummeted via 33.8%, and melon and apricot costs recorded sharp decreases of 24.1% and 23.7% respectively.

Conversely, sharp surges have been recorded within the costs of cherries (28.5%) and kiwi (16.2%). Within the contemporary greens sector, which fell via a mean of three.0%, notable value discounts have been noticed in corn at the cob (–12.2%) and tomatoes (–8.6%), contrasted via an ordinary value hike in artichokes, which rose via 13.0%, and broccoli, which climbed via 7.9%.

Ben-Gurion Airport, Might 17, 2026 (credit score: REUVEN CASTRO)Home holidays grow to be costlier, gas and flights in another country grow to be inexpensive

June marks the start of the commute season, and this used to be obviously mirrored within the tradition and leisure class, which climbed via 1.0%. Costs of native accommodations and guesthouses jumped via 5.6%, whilst vacation villages and hostels recorded a three.5% build up. Probably the most ordinary value hike on this class used to be for museum admission tickets, which surged via 10.3%.

Then again, vacationers flying in another country loved a 1.6% value drop within the commute in another country class. Customers additionally noticed reduction within the transportation sector, the place gas, charging, and motor oil costs fell via 3.1%, despite the fact that automobile leases in Israel jumped via an outstanding 12.8%.

Finish–of–season gross sales? Clothes and bedding in sharp decline

The clothes and sneakers class displayed vital value cuts of two.7% (and a 1.8% lower when seasonally adjusted), with the clothes index by myself losing 3.3%. The sharpest declines have been recorded in outerwear (–3.7%) and swimming gear and hats (–3.4%). This downward pattern additionally hit the furnishings and family apparatus class, the place a dramatic 8.3% drop used to be recorded within the costs of bedding and towels, along decreases of over 3% within the costs of cutlery and tablecloths.

The Central Bureau of Statistics (CBS) additionally printed vital information at the native actual property marketplace this night time, pointing to a considerable cooling and a continuation of the downward pattern in housing costs around the nation.

Evaluating transaction costs for April–Might 2026 to these in March–April 2026 unearths that general house costs (together with new and 2d–hand residences) fell via 1.0%. A comparability of the similar duration to the corresponding duration final yr (April–Might 2026 as opposed to April–Might 2025) displays that the housing value index recorded an annual decline of two.0%. The CBS famous: That is simplest the 3rd annual decline duration within the final decade, following identical sessions recorded in 2018 and the second one part of 2023.

Hatikva MarketHatikva Marketplace (credit score: REUVEN CASTRO)

In a breakdown via district, evaluating April–Might 2026 to March–April 2026, outstanding value drops have been recorded principally within the main metropolitan spaces: The Tel Aviv district recorded a pointy drop of two.3%, the Jerusalem district shed 1.8%, the Haifa district fell via 0.5%, and the Northern district dropped via 0.3%. Value steadiness (0.0%) used to be recorded in each the Central and Southern districts.

In an annual yr–over–yr standpoint, the district outlook is blended: Annual value decreases have been recorded within the Central district with 3.2%, Haifa with 2.6%, Tel Aviv with 2.5%, and the Southern district with 0.5%. Conversely, average annual value will increase have been recorded within the Northern district (1.4%) and the Jerusalem district (0.3%).

Within the new residences sector, a slight per month lower of 0.1% used to be recorded. Out of a lot of these transactions, the share of offers performed beneath executive subsidy methods rose to 37.5%, up from 34.6% within the earlier duration. Apparently, when except executive–supported transactions, the brand new rental value index in truth rose via 0.2%. In an annual comparability, new rental costs recorded a pointy decline of three.9% in comparison to the corresponding duration final yr.

In a broader 5–yr historic standpoint, the housing marketplace nonetheless gifts an important value hike in comparison to the bottom index of April–Might 2021: New rental costs jumped via 29.9% during the last 5 years, whilst general residences out there recorded a cumulative build up of 31.2% all over the similar duration.

Apartment marketplace boiling: A 6.6% soar for brand spanking new tenants

Even supposing house buying costs are chickening out, somebody having a look to hire an rental at the moment encounters an extremely difficult fact. CBS information displays that: For tenants who renewed a freelance, a 2.6% build up in hire used to be recorded. For brand new tenants (residences within the pattern the place the tenant modified), a pointy soar of 6.6% used to be registered.

The CBS emphasised that: Those charges replicate an approximation of the yearly fee of exchange in those teams, as hire for many tenants stays mounted all over the yr beneath present non–related contracts.

Building inputs: Annual build up of three.7% because of wages

Whilst rental costs are falling, contractors’ development prices proceed to upward thrust at a average tempo. The residential development enter value index rose via 0.2% in June 2026, achieving 103.6 issues. Because the starting of the yr, this index has recorded an build up of two.4%, and over the past 365 days, it has climbed via 3.7%. The main motive force in the back of the yearly build up in development prices is wages within the sector, which jumped via 5.5% previously yr (recording an extra per month build up of 0.4% in June).

Within the fabrics and merchandise class, a per month build up of 0.2% used to be recorded in June, with notable value will increase recorded in sewage and drainage techniques (5.6%) and water techniques (2.7%). Then again, costs of blacksmith merchandise diminished via 2.1% and able–blended concrete costs fell via 0.9%.

A blended pattern used to be additionally recorded in manufacturer value indexes. The fee index of business output for home locations diminished via 0.8% in June in comparison to Might, pushed basically via a pointy 9.8% lower in subtle petroleum product costs and a three.7% drop in clothes merchandise. On the other hand, the index except fuels in truth rose via 0.3%. Over the past 365 days, the overall commercial output index rose via 0.8%. Similtaneously, the mining and quarrying value index diminished via 1.0% this month, finishing a pointy annual drop of 8.8% in comparison to June final yr.

Israel Attia, CEO of the Financial Planning CenterIsrael Attia, CEO of the Monetary Making plans Middle (credit score: legit website, YANIV COHEN)

Israel Attia, CEO of the Monetary Making plans Middle, stated that: “The gap in annual approximation between a 2.6% increase in rent for tenants who renewed a contract and a 6.6% jump for new tenants illustrates that the real pressure in the rental market is stronger than it appears in the index. Every time an apartment returns to the market and a tenant turnover occurs, the price rises sharply. This also means ongoing pressure on inflation, especially when fewer apartments are available for rent and demand remains high.

“The answer can’t be restricted simplest to value keep an eye on. At the beginning, a structural exchange at the provide facet is needed. Opening up limitations to REITs, encouraging lengthy–time period condominium housing, and introducing institutional capital into the marketplace can build up the inventory of condominium residences and create a solid choice to the non-public marketplace. With out expanding provide, each rental that leaves the condominium marketplace simplest will increase pageant for the rest residences and creates further drive for value will increase.”

Website |  + posts
author avatar
spsingh
Share This Article