Israel’s rental market continued to climb in the first quarter of 2026, with average monthly rent rising to 5,027 shekels ($1,739), according to figures published by the Central Bureau of Statistics.
The data, released as part of the April Consumer Price Index, show that average rent rose 0.7% in January-March compared with the previous quarter and 3.5% compared with the same period last year.
A ynet review of rental prices in Israel’s largest cities and by district found that the lowest average monthly rent was in the northern district, at 3,232 shekels ($1,118). It was followed by the southern district, at 3,632 shekels ($1,257); Haifa district, at 3,665 shekels ($1,268); Jerusalem district, at 5,232 shekels ($1,810); central district, at 5,386 shekels ($1,864); and Tel Aviv district, at 6,338 shekels ($2,193).
The five most expensive cities for renters were Tel Aviv, where average monthly rent reached 7,351 shekels ($2,544), up 3.2% from the first quarter of 2025; Herzliya, at 6,647 shekels ($2,300), up 3.4%; Kfar Saba, at 6,054 shekels ($2,095), a jump of nearly 6%; Ramat Gan, at 5,826 shekels ($2,016), up 3.7%; and Jerusalem, at 5,280 shekels ($1,827), up 3.3%.
The most expensive rental apartments were 4.5- to 6-room units in Tel Aviv, where the average monthly rent reached 11,220 shekels ($3,882).
Next on the list were Rishon LeZion, at 5,184 shekels ($1,794) a month on average; Petah Tikva, at 5,051 shekels ($1,748); Holon, at 4,885 shekels ($1,690); Rehovot, at 4,870 shekels ($1,685); Beit Shemesh, at 4,782 shekels ($1,655); Netanya, at 4,729 shekels ($1,636); Ashdod, at 4,402 shekels ($1,523); Bnei Brak, at 4,397 shekels ($1,521); and Bat Yam, at 4,348 shekels ($1,504).
The cities where average rent remained below 4,000 shekels ($1,384) were Beersheba, at 3,131 shekels ($1,083) a month; Haifa, at 3,384 shekels ($1,171); Ashkelon, at 3,638 shekels ($1,259); and Hadera, at 3,978 shekels ($1,376).
The cheapest rental apartment category was 1- to 2-room units in Beersheba, where average monthly rent stood at 2,281 shekels ($789).
Rental prices for April alone also showed the upward trend continuing. Among tenants who renewed contracts, rent rose 2.2%. For new tenants, rents climbed 5.9%.
Real estate appraiser Shmulik Cohen, CEO and owner of S.K. Real Estate Appraisal, said the rise in rents reflects broader market pressures.
“The real estate market does not operate in a vacuum,” he said. “When there is a decline in home purchases, demand for rentals rises, and this is also the main reason for the increase in rental prices. More and more households are entering the rental market, and this creates demand not only for small apartments but also for larger apartments for families.”
Cohen said urban renewal is also increasing demand for rental housing, especially in high-demand areas.
“About 20% of construction starts today are part of urban renewal, and every project that enters construction means dozens of families entering the rental market for periods of three to four years,” he said.
According to Cohen, apartment owners involved in urban renewal projects should take the rise in rental prices into account. He said they should ensure, with the help of an appraiser acting on their behalf, that their agreements with developers include mechanisms compensating them for rising rental costs.
Bernard Raskin, CEO and owner of RE/MAX Israel, said lowering rental prices ultimately depends on supply and demand.
“The way to reduce rental prices is through the laws of supply and demand, meaning increasing the stock of apartments for rent,” he said. “Another problem deepening the crisis is the high interest rate, combined with the state’s populist approach of pushing investors away, which makes it less worthwhile for them to invest in rental apartments, or alternatively leads them to demand higher rent that will make their investment economical.”
Dr. Guy Weinberg, chairman of M.V. Investments Ltd., which owns hundreds of rental housing units, said the latest index included the Passover holiday, a period that traditionally sees lower market activity.
“Nevertheless, demand for rentals, especially in Tel Aviv, remained rigid, as reflected in the rental price index, which recorded an increase of about 3.6% in April,” he said.
Weinberg added that the market is now approaching the summer season, which traditionally brings a sharp rise in demand as families and students move apartments.
“These demands are also expected to create upward pressure on prices,” he said. “Any forecast regarding the continuation of rising prices in Tel Aviv depends on expected demand, but also on security developments, interest rate policy and the industry’s ability to absorb the sharp jump in the construction input index.”