Bank of Israel research found that 66% of 35 year-olds owned homes in 2002, falling to 60% in 2012.
New research by the Bank of Israel once again shows how the rise in home prices and erosion in salaries is making it more difficult for people to buy homes. The data presented by the Bank of Israel on purchasing patterns for first homes is for 2002-2012. The research does not relate to the past two years when in all likelihood it has worsened with the continued rise in home prices.
The research examined home purchasing patterns among couples aged 25-40. The editors pointed out that young couples are more vulnerable to home price rises, among other things because their income is lower than those moving up to large apartments and real estate investors, while their expenses are higher because they are raising children. The research says that first time homebuyers comprise one third of the home buying market. The research found that the proportion of homeowners among the 25-40 age group is falling and that the number of apartments purchased by young couples in the periphery has risen at the expense of homes in central Israel.
The Bank of Israel said, "In the past few years the prices of apartments in Israel have soared at a rapid rate while available household income has risen at a slower rate. The percentage of young households that own a home declined in the examined decade. About 66% of 35-year-olds surveyed owned a home, and in 2012, that percentage had declined to about 60%."
Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2014
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