The rental market continued to cool in November, with government data released Wednesday showing a slowdown in rent increases for both new and renewing tenants, mirroring a broader slowdown in the country’s real estate sector.
According to the Consumer Price Index (CPI) for November, released by the Central Bureau of Statistics (CBS), rents for tenants who renewed existing leases rose by 2.8%, slightly up from October’s 2.5% increase. However, for new tenants — those moving into previously occupied units — the average rent rose by 4.7%, a drop from the 5.5% rise reported in October.
The rent component of the overall CPI also moderated, increasing by just 0.2% in November, compared to 0.3% the previous month. The homeowners' housing services index — which estimates what homeowners would pay to rent their own homes — remained flat, following a 0.9% decline in October.
Separate figures from fintech company WeCheck, which tracks tens of thousands of real rental transactions each month, painted an even cooler picture. According to its data, nationwide rents actually declined by 0.3% in November, and showed only a 1.8% annual increase — much lower than CBS figures. WeCheck CEO Rami Ronen attributed the discrepancy to CBS’s smaller sample size, which he said may not reflect market reality.
WeCheck's city-by-city data revealed sharper monthly declines in several major cities. Herzliya led with a 3.5% drop in November, making it the only city to record a year-on-year decrease (0.5%). Other cities seeing rental declines included Ashdod (down 3.1%), Tel Aviv (1.7%), Rehovot (1.5%), Haifa (0.5%) and Netanya (0.1%).
In contrast, rents rose in cities like Ramat Gan and Jerusalem, both with a 3.5% increase, followed by Be'er Sheva at 3.2%.
Doron Katz, owner of Katz Real Estate in Herzliya, attributed the slowdown to seasonal factors. “In winter, it’s harder to find tenants to replace those leaving. Most young families prefer to move in summer ahead of the school year,” he said.
He noted the impact even on high-demand properties. “We rented out a 135-square-meter mini-penthouse with a 40-square-meter balcony for 14,000 shekels a month. Just a few months ago, that same apartment would have gone for 15,000–16,000. Demand is simply lower now, and it shows in the prices.”