A groundbreaking study by the Bank of Israel reveals how the "Iron Swords" War affected the premium for apartments with a mortgage in the Israeli housing market. Discover why in the rental market the premium for apartments with a mortgage jumped by 4.1% while in purchase prices it actually fell from 8.1% to 6.2%. The study, conducted by Dr. Yossi Yakin and Aya Talmon, is based on an analysis of purchase transaction data from the Tax Authority and apartment advertisements from January 2023 to December 2024. The results show a dramatic difference between the response of the short-term rental market and the long-term purchase market. The study also includes an initial examination of the impact of the "Am Kalavi" war and offers in-depth explanations for the differences between the markets. It is essential for real estate investors, apartment buyers and renters to understand the new trends in the Israeli housing market following the security events. The post provides professional analysis with concrete data, graphs and tables from the original research, and practical conclusions for various audiences in the real estate market.
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
