Approximately 60% of new immigrants in Israel begin their journey by renting an apartment. This choice, whether driven by financial necessity or a strategic decision to explore different areas, often serves as a stepping stone to a more permanent residence. For newcomers who are not yet acquainted with Israel’s varied lifestyles and regions, renting provides the flexibility needed to avoid commitment to a single location.
However, there is a significant psychological aspect behind this choice. For many Israelis, homeownership is considered almost sacred. This perception may not be surprising, as purchasing property in Israel involves complex, high-stakes decisions that require extensive preparation and knowledge.
In some instances, after assessing their options, immigrants opt to purchase a property to rent out, while they reside elsewhere. This decision is greatly influenced by the steep prices in desirable, central areas.
How does homeownership affect an Israeli’s sense of self-fulfillment? A survey conducted by the Geocartography Institute for Mizrahi-Tefahot Bank reveals that 54% of Israelis without a home would consider relocating simply to achieve homeownership.
“Buying a home is a value in Israel,” says Prof. Yishai Maoz of the Open University’s Department of Management and Economics. “It’s very important to distinguish between owning an apartment and renting. If you don’t own your apartment, it says something, and not something good. We are a very family-oriented people, we have many children, which means the whole topic of family, home, and familial cohesion is important to us, and this is reflected in our attitude toward homeownership.”
Written in collaboration with Bank Mizrahi-Tefahot