Apartment Prices Rising In Israel, Primarily In Chareidi Areas

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According to data released by Israel’s Central Bureau of Statistics (CBS) there is a critical nationwide housing shortage, hitting the chareidi sector the hardest. The information appeared in a report released this week. The report cites housing prices are increasing as well, primarily in the periphery and Jerusalem areas. Interior Minister Aryeh Deri is scheduled to convene a meeting this week to discus the housing crisis and seek out possible solutions.

According to the CBS report, apartment prices continue to rise. In the months of April and May 2019, prices increased by 0.5% as compared to the previous months this year. Last year, prices increased 1.6%.

According to the report, the government’s plans to reduce housing costs, including the ‘affordable housing’ program have ceased to impact the real estate market, and there has been an upward price trend since the beginning of 2019.

The picture is even more worrisome for the chareidi tzibur as the prices of homes are increasing in the periphery where new apartments are being constructed for the chareidim. For example, in the northern district there was a 5% increase in prices, which is considered quite significant. There is ongoing construction for the chareidi community in that district; in Tiveria, Afula and other cities. In the Haifa area, which includes Charish, there is has been a 2.4% price increase.

The same is true in Jerusalem, where prices in chareidi areas have increase, as is the case in Beit Shemesh.

(YWN Israel Desk – Jerusalem)




5 COMMENTS

  1. In the long term, rising prices are good for the Chareidi tzibur. For the past decade, the margins on new housing units for larger families have been considerably lower than those for smaller (typically secular) families who were willing to pay for a number of amenities which weren’t considered critical for Chareidi buyers. If developers see the higher margins possible through higher prices, they will focus their efforts on serving this segment of the market and give Chareidim more options. Its probably not good new for the small number of those who choose not to work and are already pressured to find affordable housing.

  2. This seems predictable since the Chareidi population is increasing, and the amount of housing available is increasing at a lower rate. While one can manipulate variables, such as by building more housing in areas Chareidim are able to live, or reducing the number of Chareidim (what most hilonim would favor), the law of supply and demand is unforgiving. Increased demand and reduced supply means higher prices.