Wednesday, December 15, 2010

Balebutim

Eitan Bluer

Sixty six percent of households in Israel own the apartment in which they reside, a high number in comparison with other OECD countries. Reasons for this include, but are not limited to, the sense of security that accompanies property ownership and other psychological factors, and other government incentives. The percentage of homeowners in Jerusalem (to the inclusion of apartment-owners) is somewhat lower than the national average in Israel: 59% and 66%, respectively. Of cities in Israel with a population that exceeds 100,000, those with the highest percentage of homeowners were Rishon Lezion (73%), Holon (71%) and Bnei Brak (71%). As can be seen in the graph below, the percentage of homeowners in Jerusalem is also lower than the rates found in localities in metropolitan Jerusalem.


In 2008, the percentage of households in Jerusalem who were renting an apartment was 32%, as compared to a national average of 26%. Of cities in Israel with a population that exceeds 100,000, Tel-Aviv, Ramat Gan and Bat Yam had the highest percentage of renters, with 48%, 38% and 33%, respectively. The remaining households were living under other arrangements such as subsidized rent, assisted living, etc. In Jerusalem, they accounted for 8% of all households, a percentage that was comparable to the national average and the average in Tel-Aviv (8% and 7%, respectively).


The Geographic distribution of renters and homeowners in a city is taken into consideration by urban planners and decision makers in development plans, programs to make housing affordable, etc. The geographical distribution of renters and homeowners is influenced by multiple economic and demographic factors, including the differential in housing prices across neighborhoods (central vs. peripheral neighborhoods), as well as quality of life, demographic factors and other socio-economic factors (for example: the average age of residents, professional development, etc.). In 2008, the neighborhoods of Jerusalem with the highest percentage of homeowners were Har Homa (87%), Ramat Shlomo (77%), Pisgat Zeev (74%), and Neve Yaakov (74%), and those with the highest percentage of renters were City Center (70%), Nahlaot (62%), Rehavia (54%), and French Hill (47%).

Source: 2008 Census, Israel CBS