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How many private residences are there in Israel? How many of them are mortgaged? Bonus: How many of those mortgaged residences are rented out?
Hello! Thanks for your question about the number of private dwellings in Israel, the number of private dwellings that are mortgaged, and the number of mortgaged private dwellings that are rented out.
The short version is we have estimated the number of private dwellings in Israel to be 2,305,400. Of these private dwellings, around 849,855 are mortgaged. And of these mortgaged private dwellings, around 189,517 are rented out.
Below you will find a deep dive of our findings.
METHODOLOGY
To answer your questions, we searched first for relevant information in Israel's Central Bureau of Statistics (CBS) as it is the country's national statistics office. Using keywords such as dwelling, housing, mortgage, and owner, we searched for links to tables and publications. We found lists of tables relating to housing and economic characteristics and housing density and, from these lists, we were able to gather some figures that enabled us to estimate your desired numbers.
Apart from the CBS, we performed searches in Google and in the site of the Ministry of Construction and Housing as well.
Some of the materials we encountered were in Hebrew, so we used Google Translate to decipher the content.
NUMBER OF PRIVATE DWELLINGS
For the number of private dwellings, the most useful source we found is the following table: Table 58 - Households, by type of household and ownership of dwelling, 2014. This table is part of Publication No. 1664, which was published on March 6, 2017.
According to this table, there were 2,363,500 households in Israel in 2014. Of these 2,363,500 households, 58,100 were living in dwellings that were rented out by a public housing company. This means 2,305,400 households (or 2,363,500 minus 58,100) were living in private dwellings (key money dwellings, rent-free dwellings owned by others, assisted living dwellings, dwellings rented out by private individuals, or own dwellings). With the assumption that there is a 1:1 relationship between households and the dwellings they reside in, this means there were 2,305,400 private dwellings in Israel in 2014. This number is exclusive of unoccupied private housing units, though.
NUMBER OF MORTGAGED PRIVATE DWELLINGS
From Table 1.12 of Publication No. 1589 that was published in January 2015, we learned that, in 2012, 39.3% of owners of dwellings in Israel were repaying a mortgage. This percentage grew to 39.9% in 2015, according to a report CBS published in December 2016. The average mortgage amount paid per month then was 3,260 shekels.
For this percentage to be useful, we needed to find the number of owners of dwellings. We estimated the number through the following steps:
1. We looked for the most recent number of households and found it to be 2,364,000 in 2015, according to the Ministry of Construction and Housing's Israel Housing Market report.
2. We searched for how many of these households were owners of dwellings and found that, according to the report CBS published in December 2016, 9.9% of households in 2015 did not own any dwelling, 62.6% owned one dwelling, and 27.5% owned two or more dwellings. This means 90.1% or 2,129,964 of 2,364,000 households in 2015 were owners of dwellings.
3. We multiplied 39.9% to 2,129,964 owners of dwellings to arrive at 849,855 owners repaying mortgage.
4. With the assumption that these 849,855 owners were repaying mortgage for one dwelling only, we estimated the number of mortgaged private dwellings to be 849,855.
NUMBER OF MORTGAGED PRIVATE DWELLINGS THAT ARE RENTED OUT
As with the number of mortgaged private dwellings, this number is not readily available. We therefore tried estimating this through the following steps:
1. We determined the proportion of private dwellings that are rented out. Since, according to Table 58, 513,100 out of 2,305,400 private dwellings in Israel in 2014 were rented out, we found the proportion to be 22.3%.
2. With the assumption that the proportion applies to mortgaged private dwellings as well, we estimated that 189,517 or 22.3% of 849,855 mortgaged private dwellings are rented out.
DISTRIBUTION OF HOUSEHOLDS BY DWELLING TYPE
According to Table 58, in 2014, the number of households by the type of dwelling they reside in was as follows:
Key money dwellings - 9,600
Rent-free dwellings owned by others - 65,800
Assisted living dwellings - 15,800
Dwellings rented out by public housing companies - 58,100
Dwellings rented out by private individuals - 513,100
Own dwellings - 1,581,000
CONCLUSION
To wrap it up, in Israel, there are around 2,305,400 private dwellings, 849,855 mortgaged private dwellings, and 189,517 mortgaged private dwellings that are rented out.
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