Apartment Inventory Begins to Shrink – But Jerusalem Remains at Record Levels

After an extended period of weak buyer demand on one hand, and record quantities of unsold apartments on the other, supply appears to be gradually aligning with demand. This emerges from the Central Bureau of Statistics (CBS) review of “Apartments in Real Estate Transactions” published today (Sunday) for the month of April. It should be noted that both demand and supply were significantly affected by Operation Roar of the Lion, which took place throughout March and into the first part of April.

By Nimrod Bossu, Nadlan Center

According to the review, 5,118 apartments were purchased in total during April — one of the lowest monthly figures in recent years. Of these, approximately 2,160 apartments (42.1%) were new apartments, approximately 34.4% were government-subsidized, and approximately 2,960 apartments (57.9%) were second-hand apartments.

However, alongside the weak demand, there was this time also a decline in supply. Approximately 84,000 unsold apartments were recorded at the end of April. And while this still represents an enormous volume of unsold inventory, it is down approximately 2.7% from the peak of around 86,300 unsold apartments recorded in January. Since that peak, three consecutive monthly declines in the number of new unsold apartments have been recorded.

Breaking down unsold apartment data by major cities, Jerusalem leads with a supply of approximately 10,130 apartments remaining for sale, followed by Tel Aviv-Jaffa with approximately 9,960 apartments. Also among the cities with the highest apartment supply are Bat Yam (4,891 apartments), Haifa (4,455), Netanya (3,568), Ashdod (3,257), and Ramat Gan (3,022).

Sharp Declines — Primarily in the Second-Hand Sector

In total, approximately 20,610 apartments were sold during the three months of February–April 2026, a decline of 15.4% compared to the previous three months (November 2025–January 2026). Adjusting for seasonal effects such as Passover, the CBS calculates a more moderate decline of 4.3%. Compared to the same period last year (February–April 2025), sharper declines were observed — 10.9% in the original figure and 8.2% in the seasonally adjusted figure.

39.1% of all apartments sold during the period were new apartments (approximately 8,050 units), of which approximately 26.1% were government-subsidized. “New apartment sales recorded a decline of 11.6% compared to the previous three months (November 2025–January 2026), while after seasonal adjustment the trend reverses — a rise of 2.9%,” the CBS stated. Compared to the same period last year (February–April 2025), “a decline of 7.4% was recorded in the original figure and a decline of 3.3% in the seasonally adjusted figure.”

60.9% of all apartments sold in February–April 2026 were second-hand apartments (approximately 12,560 units). This sector saw sharper declines in transaction volume, with a 17.7% drop compared to the previous three months. Compared to the same period last year (February–April 2025), transaction volume declined by 12.9%.

Tel Aviv Leads in New Apartment Sales

Examining transaction volumes by city, Tel Aviv continues to lead in new apartment sales, with 877 units purchased during the three months of February through April 2026. Despite leading the list, the figure reflects a 9.4% decline compared to purchases in the prior three months. Jerusalem ranks second in new apartment transactions with 495 deals during February–April 2026, a decline at a similar rate to Tel Aviv relative to the three previous months.

Further down the list are Kiryat Gat (393 transactions), Netanya (388), Ashkelon (267), Haifa (282), and Ofakim (275), which also recorded a sharp plunge in transaction volume (-62%) compared to 716 transactions in the preceding three-month period.

Jerusalem leads second-hand market transactions with 868 deals, followed by Haifa (805), Be’er Sheva (576), Tel Aviv (456), Ashkelon (454), and Petah Tikva (409).