Israeli home prices fall 2% over the year to April–May 2026 as inflation slows to 1.6%

Israel · July 15, 2026

According to Ynetnews, apartment prices fell 1% in April–May compared with the previous two months and 2% year on year, while new-home prices were down 3.9% annually.

According to Ynetnews, Israel's annual inflation rate fell to 1.6% in June, the lowest level since 2021. The same data release shows that apartment prices fell 1% in April–May 2026 compared with March–April and by 2% compared with a year earlier.

By region, the article reports annual declines of 3.2% in the central district, 2.6% in Haifa and 2.5% in Tel Aviv, while northern Israel was up 1.4%. For the two-month period Tel Aviv was down 2.3%. New-home prices were down 0.1% over the two months and 3.9% over the year, and government-subsidised purchases made up 37.5% of new-home transactions, up from 34.6%.

On the rental market, tenants renewing an existing lease faced increases of 2.6%, while rents for new tenants rose 6.6%. Ynetnews adds that the Bank of Israel had already cut its rate and that another cut was not expected at the 31 August decision.

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