Does the Haredi public believe Housing and Construction Minister Uri Ariel when he declares that apartment prices will fall in the coming years? The answer, according to a survey conducted by the HaModia newspaper, was unequivocal: an overwhelming majority of Haredi Jews - 96% - do not believe his promises.
In preparation for the holiday of Sukkot, the newspaper "Hamodia" presents a professional and fascinating survey, conducted by the "Sker Kahalacha" Institute and "Ram Yisrael", which includes surprising data on the real estate and Haredi housing market.
The survey provides fascinating answers about the way the housing market in Haredi society operates. The survey shows that 80% of the Haredi sector owns an apartment, since parents contribute to the expenses of their children's first apartment. A more in-depth segmentation reveals that Lithuanian Haredi buy more apartments (86%), while Sephardim and Hasidim contribute less - only 80% and 75% of them (respectively) will buy an apartment.
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The survey also examined the amount that parents invest. The survey shows that the average amount is 768,991 shekels, almost the full value of a 3-room apartment in ultra-Orthodox cities.
The survey also shows that the parents of Lithuanian grooms will pay less for a share in the apartment - 25% will give an amount ranging from 100 to 200 thousand shekels - while the parents of Lithuanian brides will agree to pay much more for the matchmaking: 38% will give an amount of money ranging from 375 to 800 thousand shekels.
The parents of the bride and groom in the Hasidic community will not pay beyond their means, with the amount ranging up to 200,000 shekels for each party.
And where does the money come from?
40% of the parents who participate in buying the apartment for the young couple raise the initial capital from savings. 21% borrow the money from private lenders, while the rest take out bank loans or mortgages.
A breakdown by sector shows that the Hasidic community (27%) borrows money from the community's general fund, while the Lithuanian community (22.2%) borrows money through a mortgage.
Another interesting statistic in the survey: 32,26% of the young couples in the Haredi sector do not own an apartment, only 45% of them live in an apartment they own, about 55% live in a rental, and about 22% of them rent the apartment they bought in the periphery in order to live near their parents or in a more established city.
And what has the most influence when deciding where to buy an apartment? The survey shows that proximity to parents and family has the most influence on where to buy an apartment.
There is also a difference between the groups regarding this decision: while in the Hasidic community, community and education occupy a more significant share, among the Lithuanians and Sephardim, closeness to parents and family is more significant.
And how many Haredim own apartments for investment?
Well, contrary to popular belief, the majority of the Haredi public (89.2%) does not have an apartment for investment.
And now for the intriguing question: Where would the ultra-Orthodox prefer to live?
60.5% would prefer to live in Jerusalem due to the quality of life. Most Haredim already living in Jerusalem are satisfied with their place of residence, while 9.6% of Bnei Brak residents would prefer to move to Jerusalem. Only 11.5% are interested in staying in the city of the Torah and Hasidism.
The survey also shows that most of those living in ultra-Orthodox concentrations across the country would like to live in Jerusalem, but among the residents of the cities of Elad and Modi'in Illit, there are many who would like to live in Bnei Brak.
A source in the housing sector responded to the data according to which the Haredi public does not believe the Housing Minister - and said: "This is a complete lack of trust in Minister Uri Ariel, who is still gaining strength in the PR sector - apparently in vain. What else can be said about the fact that the entire Haredi public simply does not believe a single word he says?!""
