House prices have soared more than 16% in the past year, the biggest increase in more than a decade
Housing prices in Israel have jumped 16.3% over the past year, the biggest rise the country has seen since 2010, according to a report released Sunday by the Central Bureau of Statistics. February-March saw house prices climb 1.9%, the data showed.
Northern and central Israel saw the largest increase in February and March 2022, 2.9% and 2.4% respectively. Haifa recorded an increase of 1.8%, Tel Aviv 1.5%, Jerusalem 1.3% and southern Israel 1.2%.
Prices in central Israel have risen 18.5% over the past year; in Jerusalem 16.7%; in Tel Aviv 16%; in Haifa 14.9%; in northern Israel 13.8% and in southern Israel 12.3%.
The nationwide average rent rose to NIS 4,153.6 (about $1,220) in the first quarter of this year, from NIS 4,112.6 in the previous quarter.
Governments have promised to drive down ever-escalating house prices for more than a decade. The exorbitant costs have put home ownership out of reach for many Israelis, weakening the middle class.
Finance Minister Avigdor Liberman said in December that house prices would “moderate” by the end of 2022, and that he thinks Israelis may even see prices come down in years to come.
Economists and experts have said the government’s new plans are a “drop in the ocean” and do not address underlying issues such as rapid population growth, government-controlled supply, lack of infrastructure and rising inequalities.
The statistics bureau also released a report on consumer goods on Sunday.
The consumer price index in Israel increased by 0.8% in April 2022, according to the new data.
Since the start of 2022, there has been a 2.3% increase, and over the past 12 months, the consumer price index has increased by 4%.
The CPI measures the average cost of household goods. Particular increases were seen in fresh fruits and vegetables (5.5%), clothing and footwear (2.8%), transportation (2.3%) and culture and entertainment (1.5%). ).
However, communication costs fell by 1.2%, according to the data.
Outrage over exorbitant housing costs and the rising cost of living has been growing across the country, more than a decade after Israel last experienced widespread social unrest over the issue.
The rise in the CPI also culminates with a 4% rise in inflation over the past year, the highest in almost 11 years.
While climbing, Israel’s inflation rate remains relatively low compared to other countries, such as the United States, where it has risen to 8.3% in the past 12 months and 7% in the past. EU.