Average Monthly Mortgage Payment in Israel Drops 4.8% Annually to 10,864 NIS
A study by the Alrov Institute shows the average monthly mortgage payment in Israel fell 4.8% annually to 10,864 NIS, with massive disparities between Tel Aviv and Be'er Sheva.
Average Mortgage Payments and Regional Disparities
A new study by the Alrov Institute has revealed that the average monthly mortgage payment for a newly purchased apartment in Israel stands at 10,864 NIS. This figure is based on a standard 25-year loan with a 70% financing rate for a typical 4-room apartment across 12 of Israel's largest cities.
While this represents a minimal quarterly increase of just 9 NIS, it reflects a significant annual decrease of approximately 5% (specifically 552 NIS) compared to the same period last year. According to the study, 5 out of the 12 cities analyzed saw a decline in monthly payments compared to the previous quarter. Analysts note that this trend does not necessarily indicate falling housing prices, but rather a shift in the mix of transactions, such as an increase in purchases in more affordable areas like Arad compared to high-priced hubs like Tel Aviv.
City-by-City Breakdown of Monthly Payments
The financial burden of homeownership varies drastically depending on the location. The Alrov Institute provided the following breakdown of average monthly mortgage payments for a 4-room apartment:
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Be'er Sheva: 5,106 NIS
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Haifa: 6,519 NIS
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Ashdod: 8,542 NIS
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Hadera: 8,827 NIS
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Bat Yam: 9,138 NIS
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Petah Tikva: 9,298 NIS
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Rishon LeZion: 9,759 NIS
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Rehovot: 9,830 NIS
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Bnei Brak: 10,092 NIS
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Ramat Gan: 11,638 NIS
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Jerusalem: 12,185 NIS
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Tel Aviv: 16,850 NIS
Annual Trends and Purchasing Power Index
Comparing the second quarter of 2026 to the second quarter of 2025, the average monthly payment fell from 11,416 NIS to 10,864 NIS, marking a 4.8% annual decrease. Over the past year, the sharpest declines in monthly payments were recorded in Ramat Gan (down 12.2%), Bnei Brak (down 9.1%), Bat Yam (down 7.9%), and Tel Aviv (down 7.4%). In contrast, Jerusalem saw a marginal decrease of only 0.2%.
The Housing Affordability Index evaluates the capacity of households to purchase a standard 4-room apartment. The index is compiled using statistical analysis of real estate transaction data from the Israel Tax Authority, household income figures from the Central Bureau of Statistics, and mortgage interest rates published by the Bank of Israel.
