Jerusalem holds steady: -0.2% year-on-year, the Center at -2.7%

For generations of Jewish families, from Brooklyn to Paris, from Moscow to Buenos Aires, Jerusalem is not a city like any other. It is also, in 2026, one of the rare Israeli real estate markets to barely move while the rest of the country corrects. The latest figures from the Central Bureau of Statistics (CBS) show a clear gap between the capital and the Center. Amounts are converted at approximately 3.11 NIS to 1 USD.

July-August: Jerusalem at -0.2%, the Center at -2.7%

The Times of Israel published the latest CBS indices on October 30, covering July and August 2026. Nationally, prices fell 1.8% year-on-year and 0.6% compared to the previous two months. They have declined in 7 of the last 12 months.

Year-on-year, the dispersion between regions is striking: Jerusalem -0.2%, North -0.8%, Haifa -1.4%, South -1.5%, Tel Aviv -1.9%, and the Central District -2.7%. Jerusalem is therefore the most stable region in the country over the year, far ahead of the Center, which has the steepest declines.

Stability that doesn't hide fluctuations

Stable doesn't mean motionless. The capital's bimonthly indices have alternated: -1.8% for April-May (CBS, published in early August), then +1.8% for May-June (published in early September), then -0.3% for July-August. Year-on-year, the same index showed +0.3% in April-May, +1.8% in May-June, and -0.2% in July-August. Bimonthly variations range between -1.8% and +1.8%, while Tel Aviv saw -2.3% in April-May and the Center is at -4.1% year-on-year in May-June.

Average prices published by the CBS for May-June show the hierarchy: approximately 3.58 million NIS in Tel Aviv (1.15 million USD), 2.91 million NIS in Jerusalem (936,000 USD), 2.73 million NIS in the Center (878,000 USD), and 1.93 million NIS in Haifa (621,000 USD). Jerusalem thus sits about 19% below Tel Aviv in average price, a calculation based on these two CBS figures.

Sales: resale holds, new builds hesitate

According to Buyitinisrael's analysis of CBS data (June to August 2026), the city of Jerusalem recorded approximately 898 resales during the period, up 3.8%: the highest resale volume in the country. New home sales in the city, however, fell to approximately 400, a 25.4% drop from spring. In the Jerusalem district as a whole, new home sales rose 12.1% to reach 741.

Jerusalem also attracts buyers from abroad. According to Buyitinisrael, approximately 60 homes were purchased in Jerusalem by foreign residents in August, about half of their purchases for the month.

The inventory paradox

Jerusalem is also the city with the largest stock of unsold new homes according to the CBS: approximately 10,250 at the end of August, ahead of Tel Aviv-Yafo (approximately 9,820), Bat Yam (approximately 4,990), and Haifa (3,970). Yet Nachi Paris, cited by the Times of Israel, states that almost everything available in Jerusalem sells, while agents say Tel Aviv and the Center suffer from surplus. Economist Dani Ben Shahar urges caution: the way the CBS counts available homes is questionable, and a large share of the stock corresponds to pre-sales still far from delivery.

The practical takeaway: the figure of 10,250 homes does not mean 10,250 move-in-ready apartments waiting for a buyer. For a foreign buyer, the useful question is when the project will be delivered, not just how many units remain available.

How much does a home in Jerusalem cost today?

Tax Authority data reported by the Times of Israel shows recent sales at 5 million NIS (approximately 1.61 million USD), 3.05 million NIS (approximately 981,000 USD), and 2.3 million NIS (approximately 740,000 USD), without details on square footage in the August listing. These are not averages, but examples of transactions. On the rental side, Madlan listings cited in the same article show 8,800 NIS per month (approximately 2,830 USD) for a 4-room apartment in North Talpiot and 8,600 NIS (approximately 2,765 USD) for a 4.5-room apartment in Katamonim. These are also examples of listings, not a rental index.

What this means for the diaspora

For communities from North America, Europe, the former USSR, or Latin America, Jerusalem often serves two roles at once: a place to live and a pied-à-terre. The two uses don't have the same requirements. A pied-à-terre used a few weeks a year needs a neighborhood that's easy to rent out and manage remotely; a primary residence needs nearby schools, synagogues, and transportation. Comparing neighborhoods before comparing prices is therefore a step not to skip.

Jerusalem's stability guarantees nothing for the future, but it shows one thing: in a national market down 1.8%, location and property type make the difference. The shekel at around 3.11 to 1 USD weighs on the purchasing power of American buyers. The Bank of Israel kept its base rate at 3.25% on October 21, after several cuts since January, with the next decision on November 23. A diaspora buyer thus has an interest in comparing several neighborhoods and requesting a precise delivery timeline. For a complete overview of the steps involved in a purchase, see our ultimate guide to real estate in Israel.

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