Over 1/3 Of Israelis Rent Their Homes For First Time Since the 1970s, More Than a Third of Israelis Are Renters The decline in home ownership has been slow but consistent for several years, particularly for people in their 30s and married couples. For the first time since the 1970s, more than a third of Israeli households do not live in homes they own, figures released Sunday by the Central Bureau of Statistics showed. The decline in home ownership has been slow but consistent for several years, particularly for people in their 30s and married couples. In 2017, the CBS said, the percentage of households living in their own homes fell to 66.5%, down from 71% at the start of the 2000s. The decline reverses many years of increasing homeownership in Israel. According to the CBS, in the mid-1950s, 57% of Israelis lived in homes they rented, including for "key money," in which buyers pay an initial lump sum and token monthly rent, in exchange for the right to remain in the apartment for life. By 1975-76, however, the rate of home ownership rose to 71%, where it remained for the next 25 years. The rate of households renting their homes, which reached a low in the 1980s, rose from about 25% 15 years ago to 27.9% in 2017. The rest of the population lives in other forms of housing, such as retirement homes or homes owned by others (such as relatives) without paying rent. The figure for renters includes people who rent their home even though they own, which they typically have rented out to others as investment or because it is inappropriate for their current needs. However, that is a minority, according to a 2009 Bank of Israel report that estimated only 9% of renters owned another home. According to the 2016 CBS survey among all householders, 27.4% don't own a home, 62.9% own and the other 9.7% own two or more. The rate of multiple home ownership has from just 3.2% in 2003 due to a friendly tax regime and a paucity of other investment alternatives, especially in the post-2008 era of low interest rates. Yaron Hoffmann-Dishon, a researcher at the left-leaning think tank Adva, said the government had been ignoring the needs of renters, including by failing to expand public housing. "You can't ignore what's happened to the rental market. The government has instituted the Mahir Lemishtaken program so that people can buy homes, but dies the rental market have to look after itself? Even after the Fair Rental Law, the government's involvement in the market is minimal," he said. The drive to build more long-term rental housing has also achieved minimal results. In a country where some 2 million people rent apartments, construction on only 900 long-term rentals had been completed as of November this year and only 6,000 rentals are in the planning stages. Hoffmann-Dishon said the rental market was contributing to income inequality in Israel, most notably by age. "When half of your pay goes to [landlords in] the top decile, this is a transfer of capital to the wealthy mainly from young families from the lower deciles." The CBS also published figures on housing costs, which account for a steep 24.4% of household income on average, whether they are owners or renters. Tel Aviv residents paid the most (33.2%) but in Haifa the rate was just 20.5%. At 49.4%, Tel Aviv also had the hugest percentage of renters among householders, CBS figures showed. By contrast in Bnai Brak, whose population is overwhelmingly ultra-Orthodox, home ownership is a high 76.9%, Some 39.5% of Israelis who own their home are still paying a mortgage on it. Ashkelon is the mortgage king, with about 62% of households still paying, but repayments are low because of the low price of the city's housing. Avi Waksman Haaretz Contributor |