Demography and Demand for Apartments in Israel 2026: Data Driving the Market | Merkaz HaNekasim | חדשות נדל"ן | מרכז הנכסים

Israeli Demography 2026: The Hidden Engine of the Real Estate Market

Israel continues to be one of the OECD countries with the highest demographic growth rate — about 180,000 additional residents each year. This figure ensures a structural demand for housing that is not expected to weaken in the coming years.

Waves of Immigration and the Real Estate Market

In 2025–2026, many new immigrants from France, the United States, and Commonwealth countries arrived in Israel. Most initially settle in Jerusalem and Netanya, impacting rental and sale prices.

Age Composition of the Population

The large wave of those born in the 90s is entering the real estate market now — a huge age group looking for their first apartments. This pressure is expected to maintain high demand at least until 2030.

The Impact of Demand on Satellite Cities

Satellite cities like Modiin and Rehovot benefit from the demographic push: growth in demand, developing infrastructure, and prices that are still 40% lower than in Tel Aviv.