Israeli Housing Sales, Wages Rise Despite War

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May 2024 saw a 7.8% rise in wages compared to May 2023, and the average monthly wage is now 12,891.

By Shula Rosen, United with Israel

Despite the ongoing war in Gaza and conflict in the north of Israel, housing sales and wages have risen, a testament to Israel’s resilient economy.

According to the Central Bureau of Statistics, May 2024 saw a 7.8% rise in wages compared to May 2023, and the average monthly salary is now 12,891.

However, this decreased from March 2023, when the average wage was 14,000.

Considering the effect of inflation, wages increased 4.4% in April 2024 compared to April 2023.

These numbers show that the job market in Israel is stable and recovering from the shocks the economy experienced in the early stages of the Gaza war.

Although the tech sector has experienced some headwinds, it still awards the highest wages, with an average of 31,976 in April 2024, up 7.9% from April 2023.

The number of tech sector jobs fell slightly by 0.2% compared to March 2024. However, there was a 0.6% increase year over year in April.

Housing sales have risen 37% from March to May 2024 and the same period in 2023, up 2.7% from the preceding months.

Around 47% of homes sold were new, and 20% were sold to government-subsidized programs.

The number of new homes sold between March and May 2024 is up 67% over the same period last year.

Jerusalem is driving the increase in home sales, with Tel Aviv in second place and Beersheva in third place.

The increased home sales include a rebound from a slow housing market before the war and shortly after October 7th and a surprising increase in construction, particularly in Jerusalem.

Prospective homeowners were holding off buying because of high interest rates following the pandemic. Still, with the stabilization of interest rates, more Israelis are prepared to buy homes to lock in lower mortgage rates.

In addition, despite the lack of manpower in many areas of Israel due to the war, housing construction in Jerusalem has ramped up, given the city’s growing population.