What makes this summer different from all others? War. Not only against our many enemies outside the borders but also within our cities over rental apartments. It’s simply crazy. There are increases of tens or even hundreds of percent in major cities in the center, Ha’Shfela area and even in the south. Unfortunately, no one wants to live in the north anymore.
The reasons for this spike are well-known and unsurprising. The war, which began on October 7, 2023, led to the evacuation of hundreds of thousands of Israelis from their homes, especially in areas close to the front lines in the north and south—some by the state, some independently, to save their lives and those of their children. Many of them, especially northern residents, are still looking for new housing solutions, where a fortified room has become a cardinal condition for renting. This situation creates pressure on the market, as families who suffered from the security situation seek apartments in safe areas that do not experience frequent sirens.
Meanwhile, this situation is unfolding against the backdrop of additional economic factors like high-interest rates and rising inflation, causing construction starts to stall and further shrink the already limited supply of apartments. Tests conducted by the Madlan website show surprising data: in cities like Modiin, Ashkelon, and Netanya, significant increases in rental demand have been recorded in recent months, while major and expensive cities like Tel Aviv and Givatayim are experiencing a relative slowdown in demand.
And still, it is a relative slowdown, as there is still a rise of tens of percent in demand compared to the same period last year. Of course, the market is not only dealing with the effects of the war but also with economic and entrepreneurial influences that could change its face shortly. Dealing with these phenomena requires an appropriate approach from the authorities and developers to meet the emerging needs in the rental market and help distressed families find their new homes.
“The impact of evacuees from the north and south on the rental market is dramatic. Thousands of families who had to leave their homes initially found themselves in hotels, and now, as the school year approaches, they are starting to look for permanent solutions. The evacuees are looking for cities that are not only safe but also offer relatively new apartments with adequate protection. They are unwilling to compromise on quality of life and protection level, so their apartment search is focused on cities with a high supply of new and high-quality apartments,” explains Tal Kopel, CEO of Madlan, the background for the dramatic increases in demand compared to the same period last year, as presented in the survey.
With the help of Madlan, we have prepared for you the ranking of the most sought-after Israeli cities in the summer 2024 rental market. If you’re renting an…
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