Suburbs Where Buying Is Now Cheaper Than Renting

Monthly ownership costs now run lower than rents for equivalent two-bedroom units in Holon and Ramat Gan, according to fresh calculations from local real estate offices.

The shift traces to Bank of Israel policy easing that began in late 2025, which trimmed mortgage rates while new apartment completions in the outer ring added supply. Tel Aviv proper still shows rents outpacing ownership on most blocks, but the gap reversed in adjacent municipalities where buyers face fewer bidding wars.

Neighborhood Breakdown

Holon’s eastern edge near the Holon Institute of Technology recorded the clearest crossover. A 75-square-metre flat listed at 2.65 million shekels carries a 25-year mortgage payment of roughly 8,200 shekels after a 25 percent down payment at current rates. Comparable units on the same streets rent for 9,100 shekels. In Ramat Gan’s Givatayim-adjacent pockets along Jabotinsky Street, ownership payments average 7,900 shekels against rents of 8,700 shekels, according to listings tracked by the Tel Aviv Municipality planning department through June.

Both areas sit on the light-rail extension that opened its first operational segment in March 2026, cutting commute times to central Tel Aviv’s Azrieli Center to under 25 minutes. City Hall’s “Dira Rishona” down-payment assistance program, which expanded eligibility to these two municipalities last quarter, further lowered effective entry costs for first-time buyers.

Market Evidence

Central Bureau of Statistics figures released this week showed Holon apartment prices slipped 4.2 percent year-on-year to an average 2.71 million shekels, while average rents climbed 6 percent. Ramat Gan posted a 3.8 percent price dip against a 5 percent rent increase. These movements reversed the long-standing premium on ownership that had held since 2022.

Prospective buyers should run fresh numbers with mortgage officers at Bank Hapoalim branches on Sokolov Street in Holon or at the Ramat Gan city square location before signing, and cross-check current listings against the municipality’s public housing registry for any remaining subsidy slots still open this fiscal year.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.