The Home Price Index published by the Central Bureau of Statistics (CBS) indicates that Israel home prices continue to decline moderately for the second month in a row. A comparison of transactions carried out in March–April with those from the previous period shows that home prices fell by 0.1%. This marks the second consecutive month that home prices have shown this minor decrease. Over the past year, however, prices have still risen by 5.1%. Meanwhile, the Consumer Price Index dropped by 0.3%.

By Nimrod Buso, Nadlan Center

The deceleration in Israel home prices continues, according to the Home Price Index published by the Central Bureau of Statistics (CBS) on Sunday evening. Based on a comparison of property transactions between March–April 2025 and those between February–March 2025, housing prices dropped by 0.1%. This is the second straight month showing this slight decline.

A comparison of transactions from the current period with those from a year ago—March–April 2025 versus March–April 2024—reveals that Israel home prices rose by 5.1%.

However, prices of new homes showed a slight increase according to the CBS. Comparing March–April 2025 with February–March 2025, new home prices rose by 0.4%. When excluding government-supported transactions, the increase was a more moderate 0.1%. Additionally, the percentage of homes sold with financing perks dropped from 16.6% in March to 11.9% in April.

A breakdown of regional price changes reveals that in the Jerusalem district, prices rose sharply by 1.2%, while in the Northern district they fell by 1.3%. Prices in Haifa remained unchanged. The Central district saw a 0.3% rise, Tel Aviv registered a 0.6% decline, and the Southern district saw a 0.2% drop.

On an annual basis, the following regional price changes were recorded: North (9.5%), Jerusalem (6.9%), Tel Aviv (5.3%), Haifa (5.3%), South (3.8%), and Center (2.9%).

Construction Input Index Up 6% Year-over-Year

The Consumer Price Index (CPI) fell by 0.3% in May 2025 compared to April 2025. Over the past twelve months (May 2025 vs. May 2024), the CPI has risen by 3.1%.

Monthly rent prices rose by 2.7% for tenants renewing their lease. For new tenants (in sampled apartments where the tenant changed), the increase was 5.2%.

The Construction Input Index for residential building rose by 0.1% in May 2025, reaching 138.6 points compared to 138.4 the previous month (base: July 2011=100.0). Since the beginning of the year, the index has risen by 3.7%. Excluding labor costs, the Construction Input Index fell by 0.2%.

Over the past year (May 2025 vs. May 2024), the residential construction input index rose by 6%, due to a 10.3% increase in labor costs and a 3.0% increase in material and product prices.

The index of construction materials and products fell by 0.1% in May 2025. Notable price drops were recorded for steel mesh (down 1.4%), conductors (1.3%), construction steel (1.2%), electrical plumbing pipes (1.1%), and stone (0.9%).

The wage index for employees in the construction sector rose by 0.5% in May 2025.