Housing prices in Israel have increased by 20%. This is the data for the year 2022 from the Central Bureau of Statistics (CBS).

The prices jumped particularly sharply in August-September 2022 — during this period, real estate in Israel rose in price by 19.8%. Housing is becoming more expensive because of the rising cost of construction.

In which areas of the country did the price increase become most noticeable? In the north of Israel (where prices rose by 20.9% compared to last year), in the central region (Gush Dan) there was an increase of 20.3%, in Haifa — 20%, in and around Tel Aviv — 19.5%. As for Jerusalem, the cost of housing there jumped by just under 18.6%.

How much is the average price of real estate in Israel? According to data for the third quarter of this year, the national average property price is $566,151; in Tel Aviv it is $876,557.

At the same time, local demand is declining due to higher interest rates on loans and the rising cost of living. The country’s bank has raised the benchmark interest rate to 2.75% since October and will likely continue to do so to prevent the economy from overheating. As for consumer products, prices have risen 5 percent over the year.

Note, that the average monthly wage of Israeli workers in August rose to $3,592, up 4 percent from August 2021.