More than 600 first time buyers bought homes in the Tel Aviv area for between NIS 4 million and NIS 6 million in the first nine months of 2021, according to research by the Ministry of Finance chief economist. The report found that these young people, representing 2% of first time homebuyers, worked in the tech sector, finance, law and accountancy and had a gross monthly household salary of more than NIS 54,000 – over four times the national average.
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The Ministry of Finance research analyzed the second and third quarters of 2021 but estimates are that young couples bought a record 65,000 apartments in 2021 – 20% of them in the Mechir LeMishtaken Buyer’s price government program. The average age of a first time buyer over this period was 36.
According to the research, the average gross household monthly salary of first time buyers is NIS 23,400 and the average price of the apartment purchased last year was NIS 1.73 million. 66% of first time buyers bought apartments for less than NIS 1.75 million and their average gross household monthly salary was NIS 18,400. 7.5% of first time buyers bought apartments for NIS 1.75-1.93 million and their average gross household monthly salary was NIS 23,400. 10% of first time buyers bought apartments for NIS1.93-2.3 million and their average gross household monthly salary was NIS 26,800.
The wealthiest first time buyers bought apartments in Tel Aviv and the Sharon region including Herzliya, Ra’anana, Ramat Hasharon and Netanya. The average apartment bought by a first time buyer in Tel Aviv cost NIS 2.5 million and in Netanya NIS 2.4 million. The average gross monthly household salary of these buyers is NIS 30,700.
In more outlying regions from Haifa to Beersheva, the average home bought by a first time buyer last year cost NIS 1.2 million and average household monthly salaries ranged between NIS 19,200 and NIS 22,200, depending on the region.
It is important to point out that the research did not take into account bonuses and share options worth some NIS 25 billion last year by employees, which would undoubtedly have gone towards equity for home buying.
The research found that at least one of the breadwinners in 20% of households that bought first time apartments last year worked in commerce and 18% worked in high-tech (compared with 10% in the population at large), while 15% worked in health and welfare services.
Published by Globes, Israel business news – en.globes.co.il – on January 24, 2022.
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