According to the Home Price Index released Tuesday evening by the Central Bureau of Statistics (CBS), new apartment prices fell by 0.4%. Excluding discounted housing deals, the housing prices drop was a more modest 0.1%. Despite the recent dip, prices remain 3.9% higher than a year ago. Rents rose by about 6% in apartments where tenants were replaced.

Housing prices dropped by another 0.3% in the most recent period, according to the Home Price Index published Tuesday evening by the Central Bureau of Statistics (CBS). The report compares real estate transactions made during April–May 2025 versus those from March–April 2025. This marks the third consecutive monthly drop in the Home Price Index, with a 0.2% decline recorded the previous month, and a 0.1% drop the month before that.

However, compared to the same period last year (April–May 2024), housing prices are still up by 3.9%. Chart 2 in the CBS report shows the historical data, highlighting two periods of year-over-year declines—once in 2018, which lasted three consecutive quarters, and again in the second half of 2023. Since early 2024, annual price increases have resumed.

A regional breakdown shows a housing prices drop in all parts of the country between April–May and the previous two months: 0.9% in Jerusalem, 0.5% in the North, 1.4% in Haifa, 0.2% in the Central region, 1.2% in Tel Aviv, and 0.8% in the South.

Compared with the same period last year, prices increased by 9.5% in the North, 6.0% in Haifa, 3.8% in Jerusalem, and 2.9% in each of the Central, Tel Aviv, and Southern regions.

In the new-homes market, prices fell by 0.4% in April–May 2025 compared to the previous two months. During that time, the share of transactions made through government subsidy programs—such as Mechir Matara and other similar programs—increased from 28.9% to 31.7%.

“Our analysis shows that the new-home price index, excluding transactions with government support, declined by 0.1%. Notably, the share of new apartments included in the index—whether sold through a government program or not, and without restrictions on move-in dates—that were purchased with financing incentives fell from 11.3% in April to just 4.6% in May,” the report stated.

Looking at the annual change, new-home prices rose by 5.3% in April–May 2025 compared to the same period in 2024.

The Consumer Price Index Rose by 0.3%.

Alongside the Home Price Index, the Consumer Price Index was also published by the CBS on Tuesday. The report revealed an increase of 0.3% in June 2025 compared to May 2025. Over the past twelve months (June 2025 vs. June 2024), the Consumer Price Index increased by 3.3%.

According to the reports, the rental market has also become more expensive: among renewing tenants, rent went up by 2.4%, while in cases of tenant turnover, the increase was more significant at 5.9%.

The residential Construction Cost Index remained unchanged in June 2025. Since the beginning of the year, this index has risen by 3.7%.