80,000 new apartments a year: the bluff of the housing industry in Israel
CBS data show that despite the increase in housing starts, the pace of construction in Israel is still lower than the government's targets. How many apartments are built per year and why should this figure increase in the coming year?
Data on housing starts in Israel can be misleading. The state reports that construction began on more than 80,000 apartments last year, presenting an increase in this metric. While such a figure might suggest that supply in Israel is skyrocketing, the actual numbers prove that these data do not accurately reflect the reality of the market.
According to the Central Bureau of Statistics (CBS), in 2025 the number of apartments increased by only 1.9% compared to the low of 2024, when some construction sites were idle due to the war and labor shortages. The critical metric is how many apartments actually joined the market during this period. It turns out that the number of new apartments completed is far from the number of housing starts. The slow pace of construction, ongoing conflict, and a slowdown in the launch of new projects by contractors lead to low completion figures.
Last year, 56,100 apartments were added in Israel—a figure far from the housing starts data. Over the last decade, the number of apartments in Israel has grown at an average rate of 1.9%, while the population growth rate stands at 1.1%. In practice, the gap between demand and supply remains high and is narrowing at an unsatisfactory rate. It is estimated that the pace will increase in 2026 due to the expected rise in the number of immigrants and a decrease in the number of emigrants, which has grown since the war and is expected to decline as the security situation becomes more stable.
A change in housing targets
Completion data indicate an increase. According to the CBS, the construction of 59,700 apartments was completed. The discrepancy compared to the number of net added apartments is due to units that were demolished for urban renewal projects but have not yet been replaced by new construction.
While this is a high number, the state has raised its strategic housing target to 65,000 apartments per year. To realize this goal, Israel needs approximately 85,000–90,000 housing starts. Today, more than 28% of apartments in Israel are built within the framework of urban renewal.
Regarding population growth, we recall that in 2023, a growth of 2.3% was recorded, a figure similar to 2022. In 2021, the rate stood at 1.8%, while in 2024 and 2025, due to the war, it decreased significantly. If the rate returns to levels around 1.5% or higher this year, Israel will need to find an immediate solution for completion rates, which remain weak despite improvements. Notably, out of a stock of 84,000 unsold apartments, the majority are not yet ready for occupancy.
