The premium for military service during wartime: What happens to apartment prices when defense becomes essential?

The "Iron Swords" war brought with it not only changes to our daily lives, but also new questions about the housing market. Are apartments with a high-rise building really selling at a higher premium? Is there a difference between the impact of the war on purchase prices versus rent? A new study by the Bank of Israel, published this week, reveals a complex and surprising picture.

The study: data from the field

Bank of Israel researchers, Dr. Yossi Yakin and Aya Talmon, examined the impact of the war on the "premium for a residential building" - the price gap between identical apartments that are only distinguished by the existence of a residential building. The study was based on:

• Purchase transaction data from the Tax Authority (January 2023 - December 2024)
• Ads for the sale of apartments from online boards
• Apartment rental ads from digital platforms

The surprising results