Home Prices Marking Record: Up 20.3% Annually

House prices across Israel set new records in October, with an increase of 20.3 percent compared with October 2021, according to the latest figures released Thursday by the Central Bureau for Statistics. The rise was especially felt in the northern and central regions, where the figure was 22.5%.

Inflation for the year to October has been calculated at 5.3 % by the Bank of Israel, outside the recommended limits of 0.1% to 3%, its highest level in 14 years (since October 2008).

Latet volunteers packing food boxes for families in poverty (Photo: Latet)

Average salaries have also risen, with the average monthly salary standing at NIS 12,285 ($3,570) in August, the last month for which data is currently available. This marks an increase of 4% from August 2021, but fails to match the general rise in prices and in particular the rate of increase in house prices.

High cost of living remains one of the main problems for working families in Israel. 2,627,000 Israelis live in poverty, which amounts to nearly 27.8 percent of the country’s entire population, according a new report published Monday by Israel’s Latet organization. 

According to Israel’s largest anti-poverty organization, at least 1,176,000 of that number are children. A total of 830,000 households in Israel are reported to be in economic distress, which is 131,000 more families than before the Covid pandemic.

The survey showed that the percentage of Israeli households that are getting close to poverty reached 20.1 percent compared to 14 percent before the pandemic. Moreover, 680,475 of Israeli families, which amounts to 21.1 percent of the population, live in nutritional insecurity. Out of them 312,825 (nearly 10 percent) live in severe nutritional insecurity. The data also indicated that over 75 percent of the pension-aged Israelis live in de facto poverty, despite the added pension for the elderly. 

Key figures in Latet alternative poverty report (in English):