The rise in housing prices in Israel has led to a decline in homeownership rates, with 70% of Israelis now owning their homes, nearly 30% renting, and the remainder living in private assisted housing, according to the Central Bureau of Statistics (CBS).
These figures, based on municipal property tax records from the Housing and Buildings Registry, reflect trends observed up to 2024. As of July 2024, Israel had approximately 2.96 million residential units, up from 2.92 million households at the end of 2023, marking a 2.2% increase from the previous year. Of the total housing units, around 2.1 million (70.6%) were owner-occupied, a slight decline from 75.2% in 2013. Meanwhile, rental units accounted for 28.8% of the market, up from 24.3% in 2013. Another 17,500 units (0.6%) were classified as private assisted housing.
Between 2023 and 2024, rental units grew by 2.7%, outpacing the overall housing stock’s growth rate of 1.9% per year. Over the past decade, the annual increase in rental housing has averaged 3.4%, highlighting a growing trend in renting as an alternative to homeownership.
In urban areas, cities and local councils accounted for about 2.71 million housing units, including 1.91 million owner-occupied homes and 781,900 rental units (28.9%). In contrast, regional councils had 253,200 housing units, with 72.1% owned and 27.5% rented.
Geographically, the highest homeownership rates were found in Israel’s northern regions (79.5%) and the West Bank (77.9%). The Tel Aviv area had the lowest homeownership rate at 60.4%, with rentals making up nearly 40% of the market. Tel Aviv, along with Jerusalem, contributed significantly to Israel’s rental market, with these two cities alone accounting for a large proportion of the country’s rental units.
Harish stood out with the highest proportion of rental units in the country, at 51.8%, followed by Tel Aviv at 47.4%, Givatayim at 41.8%, and Ramat Gan at 40%. In smaller cities and local councils, Mitzpe Ramon had the highest rental rate at 55.8%, while Kiryat Arba followed closely with 43.6%.
In terms of ownership, 81% of rental units were owned by private individuals, while 7% were managed by public housing companies. Around 4.5% were owned by kibbutzim or moshavim, and 4% were private company-owned rentals, with some leased through the government’s rent program.
Notably, in 2024, 2.6% of previously owned homes were converted to rental properties, and 2.2% of rental units were sold to become owner-occupied homes. However, the vast majority, around 95.2%, remained under the same ownership status.
Israel also continues to provide public housing, with around 60,000 public housing units available in 2024, down from 67,100 in 2013. Of these, 45,450 units are in private assisted living, and 14,600 are for public assisted housing for eligible Olim over 65. Over the past decade, Israel has removed 1,000 public housing units from stock each year. Most public housing is located in the southern and northern districts, with Be’er Sheva hosting the largest share at 9.7%.
