The 2025 Real Estate Survey by Bank Mizrahi-Tefahot – which annually examines Israelis’ attitudes toward the local housing market – paints a vivid picture of resilience, optimism, and determination, even after a long and difficult period of war. Israelis believe now is the best time to buy a home, and they expect both housing and rental prices in Israel to keep rising.
The message is clear: Israelis have strong confidence in their country’s economy. With the Gaza ceasefire taking effect, national optimism increased significantly: 50% of Israelis believe the country’s situation will improve in the next year, up from only 35% in August. Nearly 70% think that Israel’s situation a year from now will either get better or stay stable. Israelis also remain emotionally connected to their country.
Despite the war, most people want to keep building their lives here, and 63% see buying a home as a good long-term investment. Almost half (48%) believe that with perseverance and hard work, they can achieve the dream of homeownership. Additionally, 55% are willing to move to a different region within the country to increase their chances of buying a home, showing flexibility and resourcefulness.
Urban renewal is gaining momentum: 48% of Israelis would like their building to be structurally reinforced with the addition of a secure room (mamad), up from only 40% last year. The mamad has also become the second most important factor when choosing a home, showing how Israelis assess risk, adapt, and try to improve their living conditions. Notably, 82% say they wouldn’t buy an apartment without one. As for preferred residential areas, Haifa and the Carmel region lead with 35%, followed by the Lower Galilee (25%), Jerusalem (23%), and the Negev (19%) – indicating a willingness to expand geographically rather than stay concentrated in the country’s center.
The end of active combat has also helped restore a sense of security: in August, only 36% considered the central region a safe place to live – likely influenced by concerns about the conflict with Iran- but by October, that number had increased to 42%. Economically, Israelis’ main concern is the rising cost of living: 38% see it as their biggest challenge, compared to just 27% last year. At the same time, 82% believe rental prices will continue to increase. Despite these pressures, 48% still believe that hard work will help them realize their dream of owning a home.
Written in collaboration with Mizrahi-Tefahot.
The above is for information only and does not constitute an offer to provide a loan.